(30 August 2023, Hong Kong) CBRE has been appointed as the sole agent for the sale of Ovolo Southside, an iconic designer lifestyle hotel in Wong Chuk Hang, via Expressions of Interest. This is the first time the hotel has been brought to market. and represents a fantastic value-add opportunity to astute buyers, understanding the locational value and branding visibility in Island South.
Ovolo Southside, located at No. 64 Wong Chuk Hang Road, is a 162-key property in the Island Souths emerging cultural and commercial precinct of Wong Chuk Hang. Opened in 2014, the 24-storey hotel has developed a reputation as a lifestyle destination amongst locals and international guests alike, offering contemporary chic guestrooms and public spaces, an artistic ambience and a commitment to providing a memorable guest experience. As a member of Design Hotels and the Marriott Bonvoy rewards program, the hotel occupies a prominent plot location, with open views across to Ocean Park and Shouson Hill, with Deep Water Bay observable. Set in front of the Wong Chuk Hang Recreation Ground and Aberdeen Sports Ground, the building is unequivocally visible from both Wong Chuk Hang Road and the MTR South Island Line.
Strategically located within close proximity to the Wong Chuk Hang MTR station, Ovolo Southside is only a 4 minute walk away, with 2 stops to the Admiralty interchange and 3 stops to Central, the CBD of Hong Kong. Set on top of Wong Chuk Hang MTR Station will be Island South’s largest regional shopping mall, The Southside, which is due to open in Q4 2023, offering 510,000 sq. ft. of retail, entertainment, and dining options to the neighbourhood. Driving further demand to the district will be the addition of 5,200 residential units coming online in phases from 2022 through 2027 atop the station. The Hong Kong International Airport is a short 35 minutes’ drive away.
Frederick Lai, Senior Director, Capital Markets, CBRE Hong Kong said: “Ovolo Southside, widely considered as one of the most distinctive boutique hotels on Hong Kong Island that gained a fan following from its compassionate reputation during designated hotel quarantine, presenting a unique opportunity for investors to acquire a gem in Hong Kong’s Island South. Hong Kong’s hotel market has always been one of the best performing markets in the region and is currently one of the most popular markets among Mainland Chinese visitors in APAC, with June year-to-date Revenue Per Available Room reaching HKD1,085, 32% up on the previous year. With muted hotel supply in the coming years and notable conversions to coliving, we expect broad appeal from prospective purchasers looking to deploy capital in a fast-recovering hotel market”.
TriO Capitals Managing Director Tim Alpe said: “We are excited about the future opportunities that Ovolo Southside will provide an astute buyer, with potential renovation works already scoped, the value-add upside and unrivalled visibility is ready to align with the greater Hong Kong market recovery and the return to pre-pandemic levels of international arrivals by the end of 2024 as projected by the International Air Transport Association’s (IATA). This is an extension of our efforts to recycle capital to fund continued growth and expansion, following on from the successful divestment of The Inchcolm by Ovolo in Brisbane, Australia.”
Indicatively priced at HK$1.10 billion, the asset is well placed for capitalizing on the districts appreciation or acquiring for future repositioning. Submission deadline for Expressions of Interest will be 12nn, 29 September 2023 (Friday) (unless sold prior).
For any enquiries regarding this Property, please contact Frederick Lai, Senior Director, Capital Markets (tel: +852 9194 5323), or Travis Tai, Senior Manager, Capital Markets (tel: +852 6225 3356), or Macro Liao, Senior Manager, Hotels & Hospitality Asia Pacific (tel: +852 6340 7777).
