New World to open a Pentahotel in San Po Kong
New World Hospitality, the hotel arm of New World Development, has announced a plan to open a Pentahotel in San Po Kong, which will be the first Hong Kong property managed by the company.
The 720-room, 32-storey Pentahotel Kowloon is part of the company's expansion plans, which will see it adding 80 Pentahotels globally by 2020.
The new hotel, to be opened in the summer of 2013, is being built on a site acquired by New World Development in 1994, in San Po Kong, East Kowloon.
New World Hospitality's chief executive, Sonia Cheng Chi-man, said the Pentahotel Kowloon marked the start of the company's expansion in Hong Kong.
'The company will be looking for opportunities to open more hotels in other areas in Kowloon,' Cheng said.
The company was also looking at Hong Kong Island for opportunities to expand its hotel portfolio, she said.
Cheng was confident about the demand for the new hotel, taking into account the imbalance of the demand and supply of hotels in Hong Kong and forthcoming developments in East Kowloon.
STR Global, a data provider for the hotel industry, said in a report in March that Hong Kong is predicted to see a 2.5 per cent increase in room supply this year, which is expected to be offset by a 3 per cent increase in demand that will drive growth in occupancy, average daily rates and revenue per available room.
The government plans to turn Kowloon East, including the site of the city's former Kai Tak Airport, into a core business district with the construction of the Kai Tak metropolis, a cruise terminal, grade A offices and a waterfront promenade.
In March, New World Hospitality announced a US$160 million plan to expand the number of hotels under its Pentahotels brand to 30 in the next five years. The expansion will focus on the mainland and cities elsewhere in Asia.
The company will open a hotel in Guiyang next year with 197 rooms, and one in Shenyang with 390 rooms in 2014.
As well as Pentahotels, New World operates New World Hotels in China and Southeast Asia and Rosewood Hotels and Resorts in North America.
The company acquired the latter last year for US$229.5 million.
Number of hotels that New World Hospitality now manages under three brands, including Pentahotel