Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2022 Event Calendar
    • APAC Residential Forum 2022
    • Asia Logistics Forum 2022
    • Asia REIT Forum 2022
    • APAC Data Centre Forum 2022
    • Singapore Focus Forum 2022
    • Office Strategies Forum 2022
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

Hanison Said Offering Pamfleet HK$930M for Hong Kong Hotel

2020/04/27 by Stephanie Li 1 Comment

The Travelodge Central Hollywood Road is within walking distance of Soho’s pubs, when they reopen

Hanison Construction Holdings is said to be in due diligence on a Travelodge hotel in Hong Kong’s most expensive district, after offering a reported HK$930 million ($120 million) for the mid-scale hotel, according to two people familiar with the matter.

The joint owners – Hong Kong private equity firm Pamfleet and Singapore-listed hotel investment company ICP – are said to have accepted the offer for the Travelodge Central Hollywood Road, despite it undercutting last year’s asking price of HK$1.4 billion by 34 percent.

The move by Pamfleet and ICP, which owns the branding rights to Travelodge in Asia, comes as hotel occupancy in Hong Kong dropped to 24 percent in February.

Essensys - Verdantix research repot

Should Hanison succeed in its mission to buy the 148-key hotel, it will be its second acquisition of a hospitality asset in Central’s Sheung Wan area within five months, after the property firm controlled by local tycoon Payson Cha agreed to purchase 29 Jervois Street in November 2019 for HK$740.8 million.

Pamfleet and Hanison had not responded to enquiries from Mingtiandi at the time of publication. The sole agents for the sale of the property, Colliers International, were unavailable for comment.

Hanison Takes Aim at Central

Located at the intersection of Hollywood Road and Possession Street on the island’s western side, the 23-storey property is a six-minute walk from both the Sheung Wan and Sai Ying Pun MTR stations.

Payson Cha Hanison

Hanison’s Payson Cha may soon have a new place to hang out in Soho

Currently operated as the Travelodge Central, the building at 263 Hollywood Road was refurbished in 2017 and is on a 75-year lease term which commenced in 1978.

Based on the reported transaction price, Hanison will be paying HK$6.28 million per key, or the equivalent of HK$15,959 per square foot, for the 58,275 square foot (5,414 square metre) hotel, which first opened as an office block in 1998.

Agency marketing material distributed by Colliers International and seen by Mingtiandi reveals that the property is expected to generate an annual rental revenue of HK$28.3 million, based on an average room rate of HK$800 per day. Room rates at the property  have declined amid the COVID-19 crisis to the point that Internet platforms now offer accommodation at the property for around HK$300 per day, according to an online search.

In marketing the Sheung Wan asset, Colliers’ marketing materials highlighted the potential for converting the hotel into a co-living space or office tower. Should the buyer reposition the property as offices, the property consultancy estimated that it could generate annual rent of HK$29.8 million.

Selling at a Discount

Joint owners Pamfleet and ICP are in talks with Hanison after seven months of seeking a buyer amid first a storm of social unrest, and more recently, a virus crisis that has made hotel room stays nearly as unpopular as Wuhan potluck dinners or group hugs at nursing homes.

Pamfleet and ICP had originally acquired the hotel, which was then known as Butterfly on Hollywood, for HK$850 million in 2017, with ICP taking a minority ownership interest of 3.5 percent and operating the asset under the Travelodge brand, according to a stock exchange announcement issued at the time.

Alpha Investment Partners – the investment arm of Singapore’s Keppel Capital – had been the seller in that transaction, disposing of the property after acquiring it in 2011 for HK$515 million.

Virus Afflicts Hong Kong Hotels

The proposed acquisition comes as the Hong Kong Tourism Board (HKTB) reports that visitor arrivals to the city have dropped to under 100 persons per day in April, putting the sector under increasing financial stress.

Faced with this challenge, the Holiday Inn Express in Central’s Soho area – less than half a kilometre away from the Travelodge Central – has been among many hostelries suspending operations, while the 503-room Intercontinental Hong Kong in Tsim Sha Tsui decided to close for long-postponed renovations.

The downturn in the hospitality industry has also weighed on acquisitions, with “Shop King” Tang Shing-bor having last week forfeited a HK$32.8 million deposit on a Mong Kok hotel deal in order to walk away from the risk of offering hospitality in an unfriendly environment, according to a local news report.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Finance Tagged With: Central, daily-sp, Featured, Hanison Construction Holdings, Hollywood Road, Schroders, Travelodge, weekly-sp

Comments

  1. Sam says

    2020/04/28 at 9:42 am

    Well done Pamfleet, it couldn’t happen to nicer people.

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Mingtiandi Delivered

REIT forum 2022 Web banner

MTD TV

GLP, ESR and C&W on How E-Commerce Shapes China’s Warehouse Market: MTD TV
Proptech Forum: Logistics Tech
Logistics Experts Reveal How Tech Is Reshaping Asia’s Distribution Centres

More MTD TV Videos>>

People in the News

Serena Teo Ascott
Asia Real Estate People in the News 2022-07-04
trent iliffe
ESR-Logos REIT Adds Trent Iliffe to Board, Appoints Karen Lee as Deputy CEO
serene nah kerry
Kerry Properties CFO Resigns After Less Than 8 Months on Developer’s Board
Lu Yi Shimao
Asia Real Estate People in the News 2022-06-27

More Industry Professionals>>

People in the News

Asia Real Estate People in the News 2022-07-04

Serena Teo Ascott

2022 has now passed the mid-year mark and that milestone has spurred a wave of board moves this week including new … Read More>>

ESR-Logos REIT Adds Trent Iliffe to Board, Appoints Karen Lee as Deputy CEO

trent iliffe

The manager of ESR-Logos REIT announced a flurry of people moves on Friday to round out the board of directors and … Read More>>

Kerry Properties CFO Resigns After Less Than 8 Months on Developer’s Board

serene nah kerry

Hong Kong-listed developer Kerry Properties waited until the city was transfixed with the arrival of a visitor from the … Read More>>

Asia Real Estate People in the News 2022-06-27

Lu Yi Shimao

A senior appointment by one of China’s crew of defaulting privately-controlled developers leads this week’s roundup of … Read More>>

More Industry Professionals>>

Latest Stories

Louise Kavanagh - Nuveen
Bouwinvest, TIAA Boost Nuveen Japan Housing Fund to $100M First Closing
Hong Kong 2 IFC BOC CK Centre
New Hong Kong Office Leases Fall 6.7% in H1 as Vacant Space Hits Record High
Eight Reasons Why Data Sharing Brings Benefit in Infrastructure Design

Sponsored Features

Eight Reasons Why Data Sharing Brings Benefit in Infrastructure Design
Should Proptech Give Us Sleepless Nights?
Hong Kong’s Evolving Commercial Real Estate Landscape

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2022 China Advertising Media Ltd (Samoa). All rights reserved.