Colliers (NASDAQ and TSX: CIGI) and Knight Frank announce its appointment as joint sole agent by the landlord for the sale of the en-bloc hotel, The Connaught, at 138 Connaught Road West in Sai Ying Pun, Hong Kong.

Renovated in 2019, the 29-storey property encompasses 52 rooms boasting a stunning 180-degree panoramic view of Victoria Harbour, spanning a gross floor area of approximately 41,705 sq. ft. as per the approved building plans. Initially listed at HK$1 billion, the landlord has since reduced the bid price to HK$600 million.

Thomas Chak, Co-Head of Capital Markets & Investment Services at Colliers Hong Kong commented, “The property enjoys a strategic location advantage, providing convenient access to its neighbourhood: only a few minutes walk from Sai Ying Pun MTR Station, Shun Tak Centre and the Hong Kong-Macau Ferry Terminal, offering seamless travel to/from Macau and Mainland China. Additionally, the property benefits from its exceptional accessibility to the International Finance Centre and the core business district in Central.

The en-bloc hotel, leased for a term of 999 years with a hotel license, benefits from the Quality Migrant Admission Scheme in Hong Kong, attracting high-quality talents from around the globe for career development. The property is well-served as a suitable accommodation for company management. Given its strategic location with only one MTR station away from the University of Hong Kong, it is perfectly positioned to function as dormitories for senior teaching staff.”

Willis Mak, Executive Director, Head of Private Clients, Greater China at Knight Frank commented, “Despite the unstable global economy, the hotel investment market has demonstrated outstanding performance in the past two quarters. In early February this year, local co-living brand Dash Living partnered with foreign fund Prudential Investment Management (PGIM) to acquire Ovolo at 286 Queen's Road in Sheung Wan for a trading price of HK$320 million, at an average price of approximately of HK$12,300 per sq. ft. . This acquisition exemplifies that investors are still highly confident in the hotel market in the long run. Amid the upcoming interest rate cut in the U.S., the hotel is opportune for various buyers and savvy investors.

Student dormitories and hotels have attracted substantial interest from various developers and foreign funds. The revival of the inbound tourism industry, coupled with  the Hong Kong Government's effort to promote the Quality Migrant Admission Scheme, will propel the growth of the entire hotel investment market. This presents an opportune moment for investors to purchase the property amidst the market recovery and enjoy a stable rental income and a significant increase in property appreciation following the full recovery of the global economy and tourism industry.”

The tender closing date for the sale of this hotel is at 12 noon on October 23, 2024 (Wednesday).

If you would like to know more about this opportunity,  you can contact Thomas Chak, Co-Head of Capital Markets & Investment Services at Colliers Hong Kong or Willis Mak, Executive Director, Head of Private Clients, Greater China at Knight Frank via the below contact details.

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