Will Hong Kong’s 2025 hotel transactions surpass 2024 levels?

There were already notable transactions so far this year.

Hong Kong’s hotel transactions in 2025 will outpace 2024 according to a Colliers report, with opportunistic and strategic end-user buyers looking to acquire stressed, distressed or rarely-available hotels, perhaps with the potential to rebrand, reposition or for self-use.

The market has already seen notable transactions this year, including the acquisition of the Hotel Cozi Habrourview Hotel by Nanyang Commercial Bank for HKD 1.87 billion and the disposal of the Winland 800 Hotel in Tsing Yi for HKD 765 million to HKIA Accommodation, a subsidiary of Hong Kong International Airport, for its own use.

Here’s more from Colliers:

With the Government expanding the non-local student quota from 20% to 40%, the city faces a potential shortfall of over 100,000 beds within the next 5 years, presenting local and international investors and operators with a significant opportunity. With five universities in the global top 100, Hong Kong does not have the depth of quality accommodation supply to match.

The forecast influx of students and talent driven by Government policy, coupled with the limited supply of professionally managed offerings, will drive private sector investment for hotel and potentially office conversions, as well as increasing the allure of serviced apartments and residential buildings. The challenge for investors lies in finding suitable stock.

Access to traditional financing for hotel investment is likely to remain tight, as banks focus on clearing some non-performing loans. With certain owners facing pressure as interest rates remain lower but elevated, pure hotel investors may seize an opportunity to acquire full-service hotels which rarely trade. Cash-rich investors with the ability to execute are best-placed to take advantage of any pricing dislocation.