Four Seasons Place forecasts strong rental income growth
Some premier-league players appear to be unstoppable. Such is the case with Hong Kong's first luxury serviced suite hotel, Four Seasons Place, at the International Finance Centre.
This month, Four Seasons Place said it expected that its rental income for this year would be close to HK$400million, up from about HK$300 million last year.
Rents and leasing in the sector are also expected to increase by at least 10 per cent on the back of a robust economy that is forecast to grow between 4.5 per cent and 5.5 per cent this year.
Four Seasons Place achieved strong rentals across all suite configurations and the penthouses as a result of the continuing robust market and an ongoing lack of supply in the luxury serviced accommodation sector.
Average commitment is 98 per cent, with a waiting list of three to six months for clients wishing to stay in sea view rooms.
More than half of its guests stay for six to 12 months.
Belinda Kuan, director of leasing, Four Seasons Place Hong Kong, said: 'We are extremely pleased with Four Seasons Place's 2006 leasing performance.
'Given the prevailing economic and market conditions, and judging by our waiting list, the demand for this kind of accommodation in 2007 will see another year of growth for the property.
'We have also seen an increasing number of returning guests. More than 30 per cent of our total business comprises repeat guests who have stayed with us two or more times.
'We are confident that the luxury long-stay accommodation sector will once again, and for the third consecutive year, outperform the traditional residential market.'
Hilda Lai, leasing manager, portfolio leasing, Henderson Land Development, which is part of the IFC consortium, said: 'While our guests continue to be predominantly senior executives working for US and European multinationals, and entrepreneurs with their own regional or global businesses, the mainland market has also shown significant growth in 2006.
'This can be attributed to some HK$342.2 billion of funds from initial public offerings last year and the commanding strength of the China market within the global economy. This trend is likely to continue as China remains the world's largest destination for foreign direct investment.'
Product improvements to enhance the comprehensive and luxurious features at Four Seasons Place include the recently launched NxTV, which has been well received by guests.
NxTV is the leading provider of digital in-room entertainment and enables guests to enjoy the latest films via the High Definition Video on Demand system.
Four Seasons Place is the first serviced suite hotel to be equipped with NxTV.