This was how much Hong Kong hotel investment activity was worth in H1

Several deals were closed during the period.

According to a Colliers report, with several hotels available in the market, investment activity in Hong Kong has seen an uplift, with a total H1 figure of just over HKD3 billion.

“Deals earlier in the year included the Winland 800, MK Stay and the transfer of Hotel Cozi Harbourview to Nanyang Commercial Bank. On the platform side, Rava Partners, a subsidiary of Hillhouse Capital, took a majority stake in Dash Living for up to USD150 million,” the report said.

Here’s more from Colliers:

Shifting across latter Q2 and Q3 the market has been busy with sale of The Henry for HKD185 million and Hotel Ease Mong Kok for HKD435 million – each acquired for conversion into student accommodation. The Nate – a co-living building in Tsim Sha Tsui – recently transacted at HKD 272 million, With various deals pending, the final third of the year will see additional transactions across the hotel and wider co-living and living sectors.

The government's Hostels in the City scheme is the catalyst as investors target underperforming hotels and Grade B and C office assets for conversion to student hostels. The anticipated supply shortfall, predictable cash flow, lower entry pricing and government policy, is driving local and international capital to this sector. Identifying suitable stock and partnering with experienced operators remain key to unlocking value.

Meanwhile, major and boutique hotel investors and operators sense an opportunity to curate new offerings in the city, as recent downward pricing adjustments open the door to improved returns.