Hanison Construction Holdings is said to be in due diligence on a Travelodge hotel in Hong Kong’s most expensive district, for a reported HK$930 million ($120 million), reported Mingtiandi.
The sellers of the 148-room hotel are Hong Kong private equity firm Pamfleet and Singapore-listed hotel investment company ICP.
Hong Kong’s hotel industry has reported strenuous losses due to the coronavirus outbreak, lowering and canceling room reservations and flight cancelations. Hong Kong ranked No. 1 in the world in 2019 for the 10th year in a row for inbound tourists, according to market research provider Euromonitor International.
“Nine-and-a-half hotels out of 10 are losing money now because there’re no more tourists and they need to solely rely on domestic demand, so they’re just hanging in there,” said Reeves Yan, CBRE executive director.
The industry posted an overall occupancy rate of 29 percent in February compared with 91 percent a year earlie
