AEW Capital JV buys Hong Kong area hotel for $210m

AEW Capital Management with its partner Crystal Investment, a local developer, has agreed to purchase a hotel in Kowloon, Hong Kong, from Chuang’s Consortium International Ltd. for HK$1.65 billion ($210 million).

AEW will own 90 percent of the asset via its AEW Value Investors Asia IV, while Crystal Investment retains the remaining 10 percent.

The asset is the 388-room Hotel Sav at 83 Wuhu Street. The property is located at the heart of Hunghom, with close proximity to three Mass Transit Railway Stations including Whampoa Station, Ho Man Tin Station and Hunghom Station. It is a 24-story building erected over a site area of approximately 10,204 square feet, having a total gross floor area of approximately 122,108 square feet. It comprises shopping units on the ground and first floors, totaling 10,045 square feet.

As regards the hotel operation, the COVID-19 pandemic has continued to affect Hong Kong’s tourism industry severely by travel ban and quarantine req