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

In Hong Kong, once the world's most-visited city, hotels are being converted into student dormitories. Late last month, an open tender for the 598-room Hotel Cozi Harbour View in Kwun Tong was announced, with the bank that acquired it looking to sell it off for HK$1.87 billion. Nina Hospitality, a leading hotel operator in Hong Kong, has recently completed a HK$120 million renovation at one of its hotels in an effort to cater to the growing demand for student accommodation.

Despite Hong Kong's hotel occupancy rates remaining strong, many asset owners have found the business challenging due to higher financing costs. 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 2029-2030. Nina Hospitality's CEO sees the hotel refurbishment as a way to prepare for rising accommodation demand from tourists, emphasizing the potential for the hotel property industry to see more conversions and investments in both new and existing hotels.