(Reuters) – Miramar Hotel and Investment is buying a unit of Henderson Land Development in Hong Kong for HK$3.12 billion ($400.75 million) to build a new hotel and commercial complex, the hotel chain said.
The sale of Solution Right, located at the heart of Hong Kong’s Tsim Sha Tsui district, is a sign of a post-pandemic recovery in the local tourism industry.
Miramar will demolish the existing building and construct a new multi-story hotel and commercial complex next to the popular hotel, The Mira Hong Kong, the company said.
Henderson Land has a 50.08% stake in Miramar, as of Dec. 31, 2023, according to LSEG data.
Miramar expects the new hotel to attract “high-end patrons” and charge higher prices for its rooms.
The new complex is also expected to ease the supply pressure on guestrooms at The Mira Hong Kong, the hotel chain said.
Hong Kong’s inbound tourism market, which had suffered during the pandemic, rose 64% to 21.15 million visitors in the first half of 2024 from a year ago, real estate services provider Colliers reported in September.
(Reporting by Sherin Sunny in Bengaluru; Editing by Shreya Biswas)
