Swire Developing Shenzhen Hotel in Expansion of House Collective Brand

Swire Properties has revealed plans to open an ultra-luxury hotel in Shenzhen under The House Collective brand, marking the blue-chip developer’s second announcement of a new hotel in less than a month.

As the first entry in Shenzhen for the firm controlled by the Swire Pacific group, the hotel will offer 115 guestrooms and 44 serviced residences and form a key component of a mixed-use development comprising Grade A office towers and an events and exhibition space, Hong Kong-listed Swire Properties said Monday in a release.

“Shenzhen is a shining example of economic reform and one of the fastest-growing cities in the Greater Bay Area,” said Tim Blackburn, chief executive of Swire Properties and chairman of Swire Hotels. “We’re very excited to be making our first venture into this market via Swire Hotels.”

The news comes after Swire Properties in late July said it would open a hotel in Tokyo’s Shibuya area under The House Collective brand as part of a mixed-use project with Tokyu Group.

Pipeline Takes Shape

The Shenzhen hotel comes under the heading of a HK$100 billion ($12.7 billion) investment plan introduced earlier this year to beef up Swire Properties’ pipeline of projects in Hong Kong, mainland China and Southeast Asia. Half of the funds have been allocated to the mainland market, with a focus on retail-led mixed-use developments in Tier 1 and emerging Tier 1 cities.

As part of the overall plan, Swire Hotels is ramping up efforts to expand The House Collective, which launched in 2008 with the goal of developing hotels with a cultural character and architecture unique to each property.

When it opens in 2025, the Shenzhen hotel promises views of the Shenzhen Bay and easy access to the city’s main thoroughfares, including Shenzhen Bay Bridge. The site is less than a five-minute drive from two major commercial developments, the Shenzhen Bay Super Headquarters Base and the Qianhai Cooperation Zone.

In addition to the two future hotels, The House Collective family includes The Upper House in Hong Kong, The Opposite House in Beijing, The Middle House in Shanghai and The Temple House in Chengdu.

“The House Collective has introduced guests to our distinctive brand of hospitality over the past decade,” said Toby Smith, deputy chairman of Swire Hotels. “This upcoming House property will be a culmination of our experience so far, and upon opening, will meet the growing demand for exceptional hospitality services in the Greater Bay Area.”

Quarry Bay Buzz

Back in its home patch, Swire Properties announced earlier this month that its Two Taikoo Place office tower in Quarry Bay had achieved a pre-leasing commitment of close to 50 percent.

In addition to Swiss bank Julius Baer, which confirmed its take-up of four floors spanning close to 100,000 square feet (9,290 square metres), more companies have committed to moving into the 41-storey tower, including French asset manager Amundi, chemical giant BASF and Boston Consulting Group.

Swire Properties said a bank will lease more than 150,000 square feet of office space at Two Taikoo Place, accounting for nearly 20 percent of the tower’s lettable area. The deal with the unidentified anchor tenant will be one of Hong Kong Island’s biggest office leasing transactions in recent years, according to the developer.

The upbeat report followed in the wake of a six-month period that saw reversion at Swire Properties’ core office portfolio in Hong Kong take a hit, according to a quarterly operating statement released last week.

Referring to the percentage change in rent on lease renewals, entry into new leases and rent reviews, Swire said its Pacific Place complex in Admiralty recorded reversions of -18 percent in the first half of 2022, while Taikoo Place registered -3 percent.

Occupancy at Taikoo Place, which comprises One Island East, One Taikoo Place and other office towers, edged down to 96 percent from 97 percent at the end of 2021, while leased space at Pacific Place eased to 97 percent from 98 percent, Swire Properties said.