Hong Kong’s hotel investment market reels



ORIGINAL POST
Posted by Ed 10 days ago
https://hongkong.asiaxpat.com/Utility/GetImage.ashx?ImageID=aa852f5e-f0c0-4830-ae09-ab70b53a1cbf&refreshStamp=0 
Hong Kong’s hotel investment market is reeling from the impact of Covid-19 on tourism, with only one transaction taking place this year and landlords suing hotels for millions in rent arrears.
 
Only one hotel property has changed hands successfully, albeit at a steep discount, so far this year compared with seven in the first eight months of 2019. Last year’s total investment volume came to HK$9.9 billion (US$1.28 billion) via 10 transactions, according to Colliers International.
 
“Coupled with the social unrest, travellers cannot come. Hotels have no business. Occupancy rates are now just at 10 to 20 per cent, with not even enough [revenue] to pay workers,” said Francis Li, international director and head of capital markets in Greater China for Cushman & Wakefield.
 
“Even the big hotels incur losses. I think it is not an isolated phenomenon, but the general market [is like this].” 
 

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