Hong Kong’s iconic Excelsior hotel to shut in March 2019 for redevelopment into offices
Mandarin Oriental put four-star hotel on the market in June last year as the site can produce a higher yield when used for commercial offices
The Excelsior, the iconic waterfront hotel built on the very first plot of land sold during the British colonial era, will shut at the end of March for redevelopment into an office tower, according to its owner.
Mandarin Oriental International will tear down the four-star hotel and erect a commercial office tower on the site, which will take about six years to complete. The total development is budgeted at US$650 million, according to the company’s announcement on Tuesday morning.
Mandarin Oriental has received approval from the government for a mixed-use commercial building with a gross floor area of about 683,500 square feet. The company did not release details on the size of the redevelopment.
Mandarin Oriental put the hotel up for sale in June last year, but called it off three months later in September when bids fell short of expectations.
The 869-room hotel at the time was estimated to be valued at more than HK$30 billion (US$3.83 billion).
Built on Plot 1, the very first land parcel sold after Hong Kong became a British colony in 1841, the site was originally a warehouse of the British conglomerate Jardine Matheson, located on Gloucester Road across the Royal Hong Kong Yacht Club, and around the corner from Victoria Park.
In pictures: Five iconic features of the Excelsior hotel
James Riley, group chief executive of Mandarin Oriental Hotel Group, said: “The Excelsior has always been an important and much-loved hotel in the group’s portfolio. We will ensure there are plenty of opportunities over the next few months for local and international guests to visit the property and celebrate 45 years of memories.”
Opened in 1973, the Excelsior is best known to local residents and tourists for its history as part of Hong Kong’s colonial past.
