CBRE has been appointed as the sole agent for the public tender sale of Eco Tree Hotel Hong Kong at No. 160 Des Voeux Road West, Hong Kong. The tender deadline is 12:00 noon on Thursday, September 26, 2024.

Eco Tree Hotel Hong Kong boasts an excellent location in the heart of Hong Kong, with just a 5-minute drive from the International Finance Centre in Central and a 7-minute drive from the main entrance of the University of Hong Kong.

The hotel is directly connected to the Sai Ying Pun MTR station (Exit A2), one stop away from the University of Hong Kong station and two stops from Central station. The property is also close to tram and bus stops, making transportation very convenient.

The 24-storey Eco Tree Hotel Hong Kong has a True Plot Ratio Gross Floor Area of approximately 66,144 sq. ft.

The property was converted into a hotel in 2015, offering 93 guest rooms, with rooms on mid-to-high floors enjoying seaview of Victoria Harbour. In addition to the hotel portion, the property includes commercial spaces from G/F to 6/F with the G/F to 4/F currently occupied by restaurants and spa centres, and 5-6/F for office use. The hotel lobby is located on 7/F.

"The hotel is directly connected to the Sai Ying Pun MTR station, and just one stop away from the HKU Station. This perfectly meets the strong demand for student accommodation from the University of Hong Kong.

"The rooms in Eco Tree Hotel Hong Kong are spacious, have decent ceiling height, and offer flexible and versatile conversion options. In addition, the property is only two stops away from Central, making it an ideal choice for talent apartments on Hong Kong Island.

"With the continuous rise in residential rents in the surrounding areas, converting the property into student apartments is expected to bring considerable returns.”

Yan stated: “High-quality hotel buildings in Sheung Wan and Sai Ying Pun have always been highly sought after by institutional investors.

"For example, the Ovolo Hotel on Queen’s Road Central in Sheung Wan was acquired by the foreign fund PGIM in partnership with the local co-living brand Dash Living for approximately HK$320 million in February this year, with an average price of HK$12,300 per sq. ft.

"The same consortium also acquired the entire Travelodge Hotel in Sheung Wan for approximately HK$850 million in 2022, with an average price of HK$16,600 per sq. ft.

"Moreover, the Grand City Hotel in Sai Ying Pun was sold for HK$900 million in 2022, with an average price of approximately HK$15,000 per sq. ft. The buyer was a consortium formed by the American fund Angelo Gordon and a co-living sector operator Weave Living. It is evident that hotel properties in the Island West area are highly favored by the market.”

Yan continued: “In the 2023 Policy Address, the government announced an increase in the upper limit of the proportion of non-local students in the eight universities from 20% to 40%.

"Coupled with the continuous shortage of local university dormitory supply and the significant increase in the number of non-local students, rents are expected to rise further. These have made student accommodation investment a popular choice in the property investment market in recent years.”

Zac Wong, Director, Capital Markets, CBRE Hong Kong, also stated that, “In recent years, the property investment market has shown enthusiastic responses for student housing conversion opportunities.

"The purchasers’  background are quite diverse, including local investors, Chinese corporates as well as international funds.

"In the past two months, there have been three transactions of en-bloc buildings, these include the Metropolitan University’s acquisition of the Urbanwood Hotel in Hung Hom for HK$1 billion, the sale of the entire CHI120 commercial and residential property in Sai Ying Pun for HK$188 million, and the Crystal Group’s purchase of an entire commercial and residential property on San Lau Street in Hung Hom for HK$123 million, which is also expected to be converted into student accommodation.

It shows that the student accommodation demand is strong and it has become one of the most popular sectors in the property investment market.

Eco Tree Hotel Hong Kong is a rare opportunity as it is located in the traditional core area of Hong Kong Island and close to HKU. The property for sale is expected to attract a large pool of various investors.”

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