Henderson Land Development (0012) said redeveloping its Champagne Court Block B in Tsim Sha Tsui into a hotel can shed the stigmatized reputation of its history of conducting illegal activities in prostitution, gambling, and drug offenses.
The developer had earlier applied for a 12,300-square-foot redevelopment site to build a 35-story hotel and commercial complex, requesting relaxation of the development density and height restrictions, but failed to secure approval from the Town Planning Board, citing insufficient justification for relaxing the plot ratio.
Henderson Land noted that the redevelopment will enhance Hong Kong’s tourism capacity. Without the approvals, the number of rooms would drop from 159 to about 110 to 125, pressuring occupancy rates to nearly 90 percent during peak tourist seasons, which would contradict the government's "Tourism is Everywhere" policy.
In its new submission, it said the Champagne Court has long been associated with vice, drug-related activities, and crime, and that redevelopment into a hotel would eliminate these persistent negative associations, contributing to community health, convenience, and general welfare.
It also pointed out that the redevelopment can be a catalyst for urban renewal in Tsim Sha Tsui, drawing on the "planning-led, district-based" strategy in redeveloping old districts in Mong Kok and Yau Ma Tei.
Additionally, Henderson Land cited recent Town Planning Board approvals for development relaxations to support its case, such as the 2024 amendment to the Yau Ma Tei Outline Zoning Plan, which removed the 15-fold plot ratio cap for commercial zones and raised the building height limit to 140 meters above Principal Datum.
The developer has been acquiring units at Champagne Court since 2011. But it was not until 2020 that it acquired over 80 percent ownership of Block B and filed an application for compulsory sale with the Lands Tribunal. It obtained full ownership in 2024 through a compulsory auction at a reserve price of HK$1.73 billion, a process that took the developer 13 years. Henderson Land is also continuing to acquire units in Block A.
The Mira Hong Kong announced last year that it had reached an agreement with its major shareholder, Henderson Land, to acquire the interests in Champagne Court for HK$2.12 billion, but the transaction later fell through.
Champagne Court, completed in 1957, is 69 years old and comprises Blocks A and B. The site was originally owned by the Hotung family, and was later purchased by Henry Fok in 1954 for HK$1.13 million to build a 10-story commercial-residential building, which was the tallest building in Kowloon at the time and highly iconic. The ground floor shops sold cameras and watches, while upstairs residents were affluent and distinguished – a luxury residence in the bustling city center.
The building saw its heyday in the 1970s, when it was frequented by celebrities and renowned doctors. However, it began to decline in the 1980s and became a haunt for gangsters and drug dealers. The building has also drawn Japanese and international media attention for subdivided cubicle apartments operating one-woman brothels in the mid-1990s, and was an inspiration for the TVB drama series Golden Building Barrack O'Karma in 2019 and 2022.
