Last week，Mandarin Oriental, a luxury hotel chain group under Jardine Matheson Group, announced，The 45-year-old Excelsior Hotel will close next March，The group expects to spend 6 years to build a new office building on the original site。

This is a landmark event for Hong Kong’s hotel and real estate industry。Excellent is a four-star hotel，Located in the bustling Causeway Bay area，Most rooms have sea views。Excellent has a total of 869 rooms，According to Hannah Jeong, senior director of real estate services agency Colliers Estimated，Its closure will cost the region 7.8% of rooms，Hotel prices in Wan Chai and Causeway Bay to rise rapidly by 6%。This prediction is contrary to CBRE’s conclusion，The latter believes that the supply of hotels in Wan Chai is still sufficient。

What 188bet sports betting app download is certain is，For some locals and regular customers，The symbolic meaning of this hotel will be finalized。

281 Gloucester Road, where the Excelsior Hotel is located, belonged to the land that was first auctioned by the British colonial government in 1841，The person who bought this land was Jardine Matheson, a company established by the British in Guangzhou。Early，This place has been used as a warehouse and factory；1973，Mandarin Oriental Group converted it into a luxury hotel，This place later became a place frequented by Hong Kong celebrities，Including former TVB Chairman Run Run Shaw。

Back in 2015，The fate of Yidong begins to face high uncertainty。April of the current year，The Hong Kong government disclosed that it has approved the transformation of this hotel into a 26-story commercial building，The new building has a floor area of ​​684,005 square feet (approximately 63,500 square meters)。2017，Mandarin Oriental officially puts 281 Gloucester Road up for sale，Estimated value between HK$24 billion and HK$34.2 billion。Multiple real estate developers expressed interest at one time，But not long after，Deal fell through，Mandarin Oriental’s share price plummeted。

Feedback 188bet app from the capital market illustrates the nature of this deal: it is a rational trade-off between Hong Kong’s uncertain hotel industry and tight demand for office buildings。

Just before the Excelsior renovation plan was approved in 2014，Mandarin Oriental’s annual report shows that Excelsior’s full-year occupancy rate is 85%，Profit fell 4% from the previous year。Year，Mainland tourists are less willing to travel to Hong Kong，Resulting in the loss of the most important part of the customer base of Hong Kong hotels。Mainland tourists’ orders account for about 15% of the total orders of Excelsior Hotel。

By 2017，The tourism industry in Hong Kong has rebounded。The "Golden Week" of that year，The occupancy rate of Hong Kong hotels exceeds 90%；First 8 months of this year，The number of mainland tourists increased 13 compared with the same period last year.8%。But the prospects for this growth remain uncertain，Especially the need to deal with potential risks in the relationship between the mainland and Hong Kong。

In comparison，Office buildings seem to be a more profitable business。Compared with strong demand，There are still too few office buildings in Hong Kong，Only one new Grade A office building will 188bet Online Sports Betting and Casino be added between now and 2020，means Hong Kong’s office supply hits a 30-year low。The South China Morning Post quoted a report from Jones Lang LaSalle (JLL) as saying，The Hong Kong government is currently busy solving the housing supply problem，Unable to increase the supply of commercial real estate。

Due to land tension，Office rents in Hong Kong remain high。According to a survey earlier this year，Office rents in Central, Hong Kong are among the highest in the world，Annual rent exceeds HKD 20,000 per square meter，75% higher than Midtown Manhattan, New York。

Colliers International estimates，After the Excelsior Hotel was transformed into a mixed-use commercial building，Value will rise from current HK$27.3 billion to HK$4.1 million，Resulting in book income of HK$13.7 billion。6.The US$500 million (approximately HK$5 billion) renovation budget seems worthwhile。

188bet app download , author: Cai Yineng, original title: "A legendary hotel in Hong Kong will close next year，Transform into a more profitable office building》.