(25 September 2024, Hong Kong) JLL has been appointed as the sole agent for the sale of Hotel COZi Harbour View at 163 Wai Yip Street in Kwun Tong. The initial Expression of Interest (EOI) process in July received an enthusiastic response, prompting the owner to proceed with a public tender. The tender will close at 3pm on Tuesday, November 5, 2024. It offers a rare opportunity to acquire a large-scale hotel with potential for conversion into private student accommodation. Whether maintained as a hotel or repurposed, the investment prospects are promising.
Completed in 2007, Hotel COZi Harbour View is a 32-storey building that occupies a site area of 19,050 sq ft. This rare, large-scale hotel in the district boasts a total gross floor area of approximately 235,300 sq ft and offers 598 guestrooms. Ideally located near the MTR Kwun Tong station, it provides convenient access to multiple university campuses, with Lok Fu, Kowloon Tong, and Ho Man Tin all within a 30-minute MTR ride. Additionally, the district features large shopping malls, offering convenient options for living, dining, and entertainment. The Hotel is also in close proximity to Kai Tak. With the anticipated opening of Kai Tak Sports Park early next year, hotel demand in East Kowloon is expected to increase.
The property could continue to operate as a hotel. Located near the Kwun Tong Promenade, it offers captivating views of the Kai Tak Cruise Terminal from the mid to high-level floors. Kwun Tong is one of the city’s major business districts, encompassing the bustling commercial area of Kwun Tong with a total gross floor area of 13.6 million sq ft, as well as the neighbouring Kowloon Bay business district, which has a total gross floor area of 11.2 million sq ft for office space. With the consistent growth in business activities within the district, the shortage of hotels will become more noticeable, presenting potential for higher appreciation.
Oscar Chan, Head of Capital Markets at JLL in Hong Kong, said: “The market has recorded several hotel transactions with plans to convert them into student accommodation, reflecting the emergence of student housing as a new property investment option with high investment potential. In fact, rental prices for private student accommodations in Hong Kong have seen double-digit growth over the past two years, with a 15% increase in the past 12 months alone. The rental growth for student accommodations currently outpaces that of private residential properties. This significant increase highlights the continuous shortage of student housing and the rapid growth in the number of non-local students, driving rental prices upward. As a result, the investment prospects for private student accommodations are optimistic. Moreover, following last week’s US rate cut, Hong Kong has started to attract investors back to the investment property market. The rental yield for private student accommodations has consistently been high, making it an increasingly attractive investment. The tender of Hotel COZi Harbour View in Kwun Tong presents a potential opportunity for conversion into student accommodations, capitalising on the growing market demand. As such, we believe it will attract the substantial interest from investors.”
For further information, visit jll.com.
