Hotel for Sale – Ovolo Southside
CBRE has been appointed as the sole agent for the sale of Ovolo Southside, an iconic designer lifestyle hotel in Wong Chuk Hang, via Expressions of Interest.
This is the first time the hotel has been brought to market and represents a fantastic value-add opportunity to astute buyers, understanding the locational value and branding visibility in Island South.
Ovolo Southside, located at No. 64 Wong Chuk Hang Road, is a 162-key property in the Island Souths emerging cultural and commercial precinct of Wong Chuk Hang. Opened in 2014, the 24-storey hotel has developed a reputation as a lifestyle destination amongst locals and international guests alike, offering contemporary chic guestrooms and public spaces, an artistic ambience and a commitment to providing a memorable guest experience. As a member of Design Hotels and the Marriott Bonvoy rewards program, the hotel occupies a prominent plot location, with open views across to Ocean Park and Shouson Hill, with Deep Water Bay observable. Set in front of the Wong Chuk Hang Recreation Ground and Aberdeen Sports Ground, the building is unequivocally visible from both Wong Chuk Hang Road and the MTR South Island Line.
Strategically located within close proximity to the Wong Chuk Hang MTR station, Ovolo Southside is only a 4 minute walk away, with 2 stops to the Admiralty interchange and 3 stops to Central, the CBD of Hong Kong. Set on top of Wong Chuk Hang MTR Station will be Island South’s largest regional shopping mall, The Southside, which is due to open in Q4 2023, offering 510,000 sq. ft. of retail, entertainment, and dining options to the neighbourhood. Driving further demand to the district will be the addition of 5,200 residential units coming online in phases from 2022 through 2027 atop the station. The Hong Kong International Airport is a short 35 minutes’ drive away.
Frederick Lai, Senior Director, Capital Markets, CBRE Hong Kong said: “Ovolo Southside, widely considered as one of the most distinctive boutique hotels on Hong Kong Island that gained a fan following from its compassionate reputation during designated hotel quarantine, presenting a unique opportunity for investors to acquire a gem in Hong Kong’s Island South. Hong Kong’s hotel market has always been one of the best performing markets in the region and is currently one of the most popular markets among Mainland Chinese visitors in APAC, with June year-to-date Revenue Per Available Room reaching HKD1,085, 32% up on the previous year. With muted hotel supply in the coming years and notable conversions to co-living, we expect broad appeal from prospective purchasers looking to deploy capital in a fast-recovering hotel market”.
Indicatively priced at HK$1.10 billion, the asset is well placed for capitalizing on the districts appreciation or acquiring for future repositioning.
The Expressions of Interest campaign closes at 12pm on 29th September 2023.