Once the world’s most-visited city, Hong Kong now converts hotels into student dorms

In October 2025, Hong Kong's Nanyang Commercial Bank announced a tender for the Hotel Cozi Harbour View in Kwun Tong, a 598-room hotel situated on the city's eastern Kowloon Peninsula. The bank took ownership of the property in 2025 for HK$1.87 billion, with the aim of selling it to the highest bidder. Following the announcement, Nina Hospitality, a leading hotel operator in Hong Kong, completed a HK$120 million renovation at Nina Hotel Island South.

The hotel now features balcony suites, family rooms, and an upgraded lobby and guestrooms. This renovation represents the second major project undertaken by the hospitality arm of Chinachem Group, following the remodeling of guest rooms at the Nina Hotel Tsuen Wan West in 2024. Nina Hospitality's rebranding initiative, launched in 2021, includes a HK$225 million investment in Tsuen Wan's lobbies.

The hotel industry in Hong Kong has undergone a transformation, with the city once being the world's most-visited city before 2019. In 2018, Hong Kong recorded 29.26 million overnight visitor arrivals, with an average hotel occupancy rate of 91 percent. However, by 2025, the city had seen 23.19 million overnight visitor arrivals, still 20 percent below its 2018 peak, and the average hotel room occupancy rate had declined to 87 percent.

Higher financing costs due to increased interest rates have posed challenges for many asset owners, leading to the disposal of hotels either through sales at significant discounts or potential liquidation by creditors. In 2025, Hong Kong has recorded HK$8.2 billion worth of hotel property deals, with approximately 2,550 rooms being converted into student accommodations.

As the government aims to transform Hong Kong into a global education hub, there is an estimated shortfall of over 140,000 student beds by the 2029-2030 school year. Nina Hospitality's management, led by Simon Manning, sees the hotel renovations as a strategic move to meet the growing accommodation demand from tourists. Despite a slower recovery compared to pre-pandemic levels, the management remains optimistic about the positive impact of the government's initiatives, such as mega-events and sports-related programs, in driving tourism growth.

Analysts predict that the hotel property industry in Hong Kong will continue to see more conversions, particularly in higher market segments, while well-priced mid-scale assets could be converted into student accommodations. The location of a hotel determines its suitability for a student dormitory or tourist accommodation, with well-performing hotels in established tourism and business districts more likely to stay in the hotel market, while properties in less competitive locations could be suitable for student accommodations.