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Currently, Western and international operators dominate Hong Kong’s hotel landscape, while Chinese ones have a minor presence. Among some of the more notable mainland players, BTG Homeinns operates both upscale and mid-market hotels in Hong Kong, including the Wharney Hotel in Wan Chai, Oasis Avenue in Tsim Sha Tsui, and Oasis Aurum 181 in Sai Ying Pun.
However, mainland brands had significant potential for growth, said Hannah Jeong, executive director and head of valuation and advisory services at CBRE Hong Kong.
“The Chinese operators are increasing their footprint and it’s a global trend,” said Jeong, adding that because 70 per cent of tourists in Hong Kong came from the mainland, Chinese hotels “must show their presence” in the city.
The shift reflects the growing ambition of Chinese hotel operators to expand beyond the mainland, which could give them a competitive edge in attracting hotel asset owners, according to CBRE.
Hotel operations typically follow several business models, such as a master lease – where the hotel owner leases the asset to an operator – or hotel service management, whereby the operator manages the hotel on behalf of the owner.
