Two hotels change hands as Covid roils Peninsula

Two hotels in Hong Kong changed hands as The Peninsula Hong Kong posted its lowest occupancy rate since the Sars outbreak in 2003 of 9 percent in the first quarter.

Magnificent Hotel Investments (0201) said it plans to acquire The Bay Bridge Lifestyle Retreat Hotel for HK$1.42 billion from Lafayette Hotel, owned by the late "shop king" Tang Shing-bor's family.

The 16-story hotel is located at Castle Peak Road in Tsuen Wan and has 435 guest rooms, a restaurant, swimming pool and gym.

Tang's family, which purchased the hotel for HK$1.68 billion in 2017, would suffer a loss of around HK$260 million, or 15 percent of its value, after holding it for 5 years.

Rental accommodation provider Weave Living meanwhile, entered into an agreement with Magnificent Hotel to buy its Grand City Hotel in Sai Ying Pun for HK$900 million.

This came as The Hongkong and Shanghai Hotels (0045) said the occupancy rate at the Peninsula Hong Kong was 9 percent in the first quarter amid the worst Covid outbreak in the city.

Revenue per available room in the city in the first three months also plunged by 52 percent year-on-year, or 71 percent quarter-on-quarter to HK$380.

Average room rate, however, soared by 56 percent from a year ago to HK$4,127.