China Resources subsidiary acquires Hong Kong hotel for student housing project
CR Longdation buys Kwai Chung hotel for US$122 million and plans 900-bed facility as non-local student numbers continue to rise
A subsidiary of state-owned conglomerate China Resources (Holdings) has acquired a Hong Kong hotel and plans to convert it into student housing amid a wave of investments driven by rising demand after the city raised the cap on non-local students.
CR Longdation signed an agreement to buy four-star hotel Hotel Cozi Oasis in Kwai Chung, a major industrial and residential area in the southwestern New Territories, for HK$953 million (US$122 million), said Colliers and Knight Frank, which advised on the transaction, in a press release on Sunday. It is the largest hotel transaction of the year.
The firm, whose operations range from asset management to retail and hotel operation, plans to turn the property into student housing, providing about 900 beds.
Hong Kong’s property market had seen several large-scale deals across different asset types, with hotels – especially those that could be converted into student housing – drawing the most attention, said Willis Mak, executive director and head of private clients at Greater China at Knight Frank. “This deal is the largest and most high-profile hotel transaction of the year.”