Saudi Press

Saudi Arabia and the world
Saturday, Aug 02, 2025

Hong Kong hotels issue SOS as rates hit US$9 a night, occupancy 20 per cent

Hong Kong hotels issue SOS as rates hit US$9 a night, occupancy 20 per cent

Hong Kong hotel operators have called on the government to waive rents and even allow properties to offer empty rooms on long-term leases, or for sale, as a way of survival amid a steep decline in occupancy and rates brought on by 16 weeks of protests in the city.

Hong Kong hotel operators have called on the government to waive rents and even allow properties to offer empty rooms on long-term leases, or for sale, as a way of survival amid a steep decline in occupancy and rates brought on by 16 weeks of protests in the city.

At a new low of HK$71 (US$9.06) a night, some hotels are now cheaper than subdivided flats in the city. Winland 800 Hotel in protest-hit Tsing Yi, is offering that rate on weekdays through the Wing On Travel website. It represents a decline of 65.7 per cent from its lowest rate of HK$207 a night in March 2018.
The monthly rate at the three-star, 800-room hotel, which has sea views, at HK$5,980 for 30 nights – breakfast and wireless internet included according to an advertisement – is cheaper than many subdivided flats. One subdivided flat of 100 sq ft in Causeway Bay, for instance, recently commanded a rent of HK$8,500 a month. Mexan Limited, the hotel’s listed parent company, did not immediately respond to a request for comment.

“Certainly, this year has been far more challenging than any other time for any industry,” said Girish Jhunjhnuwala, founder and chief executive of Ovolo Group, who has called for help for the local hospitality industry “given the current economic downturn”, which has hit been “felt across all corners of the city”.

Jhunjhnuwala said the tourism industry had been hit hardest, and that the government should waive rents and rates for at least a year, set up a short-term fund to help the hotel industry, give visitors incentives, such as special rates, to stop over in Hong Kong for a day or two, and instruct banks to waive interest on loans borrowed by hotels.

“It’s devastating to see the effect the recent situation in our city has had on local businesses, particularly on those of us in the hospitality industry,” he said, adding that the occupancy rate of “most hotels in Hong Kong was down 30 per cent to 40 per cent” on year, with some even down to 20 per cent.

Jhunjhnuwala, whose company employs more than 190 people in Hong Kong, said frontline staff might unfortunately face reduced hours, reduced wages or, in some cases, even redundancies.

The government should relax rules so that converted industrial buildings and wasted hotels in industrial areas that are battered by a prolonged decline in cheap mainland Chinese package tours can be leased, or even sold, to locals for residential use, said William Cheng, chairman and chief executive of Magnificent Hotel Investments, which owns nine hotels, including Best Western in Hong Kong.

“If the government recognises there is a need for housing for the young, it ought to … relax the rules, [permitting] hotel rooms with kitchens, to be rented over 28 days, with hotel rooms saleable to individual buyers, like anywhere else in the world,” he said.

Cheng also said converting industrial buildings into hotels that can be leased or sold for residential use “can potentially supply more than 500,000 units speedily” and ease the housing crisis in Hong Kong, the world’s most expensive property market.

“Each traditional industrial location, such as Kwun Tong, Tsuen Wan, Kwai Chung, Tsing Yi island, Aberdeen, Yuen Long and Tuen Muen, must have more than 200 rundown industrial or warehouse buildings, making it a total of more than 1,000 buildings,” Cheng said.

“Each industrial or warehouse building is normally large and can be rebuilt, or renovated, to more than 500 rooms. Therefore, there is potential for more than 500,000 hotel rooms for accommodation if there is demand.”

The city’s Housing Authority has already cut rent for retail tenants in public housing, while HSBC, Hong Kong’s largest bank and one of its three currency-issuing lenders, offered rebates on interest on loans
borrowed by small and medium-sized companies between March and August.

Elsewhere, the programme to turn industrial buildings to transitional housing has failed without any application so far as “market players have signalled reservations about this initiative owing to the potentially high refurbishment and compliance costs”, said Peter Ho, partner of Mayer Brown's real estate group in finance and investment team.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Emirates Airline Expands Market Share with New $20 Million Campaign
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
×