Hong Kong hoteliers issue SOS as plunging rates reach US$9 a night and occupancy hits 20 per cent amid protests

At monthly rate of HK$5,980, three-star Winland 800 Hotel in protest-hit Tsing Yi cheaper than subdivided flats

Government should allow long-term leasing and sale of hotel rooms as this would also solve housing problem, Best Western owner says

Reading Time:3 minutes

Anti-government protesters use fire extinguisher in Tsing Yi Station on 22 September 2019. Photo: Dickson Lee

Published: 7:00am, 25 Sep 2019Updated: 5:37pm, 27 Sep 2019

Hong Kong hotel operators have called on the government to waive rents and even allow properties to offer empty rooms on long-term leases, or for sale, as a way of survival amid a steep decline in occupancy and rates brought on by 16 weeks of protests in the city.

At a new low of HK$71 (US$9.06) a night, some hotels are now cheaper than subdivided flats in the city. Winland 800 Hotel in protest-hit Tsing Yi, is offering that rate on weekdays through the Wing On Travel website. It represents a decline of 65.7 per cent from its lowest rate of HK$207 a night in March 2018.

The monthly rate at the three-star, 800-room hotel, which has sea views, at HK$5,980 for 30 nights – breakfast and wireless internet included according to an advertisement – is cheaper than many subdivided flats. One subdivided flat of 100 sq ft in Causeway Bay, for instance, recently commanded a rent of HK$8,500 a month. Mexan Limited, the hotel’s listed parent company, did not immediately respond to a request for comment.

“Certainly, this year has been far more challenging than any other time for any industry,” said Girish Jhunjhnuwala, founder and chief executive of Ovolo Group, who has called for help for the local hospitality industry “given the current economic downturn”, which has hit been “felt across all corners of the city”.

Jhunjhnuwala said the tourism industry had been hit hardest, and that the government should waive rents and rates for at least a year, set up a short-term fund to help the hotel industry, give visitors incentives, such as special rates, to stop over in Hong Kong for a day or two, and instruct banks to waive interest on loans borrowed by hotels.

Hong Kong hoteliers issue SOS as plunging rates reach US$9 a night and occupancy hits 20 per cent amid protests

At monthly rate of HK$5,980, three-star Winland 800 Hotel in protest-hit Tsing Yi cheaper than subdivided flats Government should allow long-term leasing and sale of hotel rooms as this would also solve housing problem, Best Western owner says

At monthly rate of HK$5,980, three-star Winland 800 Hotel in protest-hit Tsing Yi cheaper than subdivided flats

Government should allow long-term leasing and sale of hotel rooms as this would also solve housing problem, Best Western owner says