Closure of Hong Kong’s Casa Hotel tied to student-housing trend after failed sale attempts
Move comes as hotel-to-dormitory conversions gather pace, even as some owners wait for asset values to rebound, property consultant says
A notice posted outside the three-star hotel said the property officially closed on May 31, thanking customers for their support over the years. No reason for the closure was given.
The 162-room hotel occupies a 14-storey commercial-residential building at 487-489 Nathan Road. Veteran local investor Yiu Lai-kuen acquired the property for HK$159 million (US$20.3 million) in 2007 and subsequently converted it into Casa Hotel, according to Land Registry records.
The 40-year-old building has a gross floor area of about 37,228 sq ft. The ground floor contained three retail shops, while the first and second floors housed hotel facilities and a cafe. Guest rooms occupied the third to 14th floors.
The owner repeatedly tested the market in recent years. Most recently, property consultant CBRE was appointed in September last year to sell the building with a valuation of about HK$450 million, or roughly HK$12,088 per square foot.
That valuation was about 44 per cent lower than the HK$800 million asking price sought in 2021, reflecting the decline in hotel and commercial asset values since the pandemic.