Hotel site set to fetch up to HK$980m

PUBLISHED : Saturday, 22 October, 2011, 12:00am
UPDATED : Saturday, 22 October, 2011, 12:00am

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The government has received two bids from developers for a large hotel site in Sai Kung which surveyors expect to be sold for up to HK$980 million.

A spokesman for the Lands Department said the 193,104 sq ft site at the junction of Wai Man Road and Sha Ha Road in Sai Kung drew two submissions by the time its tender closed yesterday. 'It's not unusual that there were just two bids for the site because the scale of the project is quite large, which we expect to exceed HK$1 billion including the land price and construction costs,' said Alvin Lam Tsz-pun, a director at Midland Surveyors.

'It's quite far too... plus hotel investment and operation is a long-term investment with high cost.'

Lam said he expected the site would be turned into a resort hotel as it is close to the sea and has a beach nearby. The site went for sale after an applicant guaranteed a minimum bid of HK$580 million, or around HK$2,002 per buildable sq ft, said the Lands Department in August.

Alnwick Chan Chi-hing, executive director of property consultancy Knight Frank, said the plot could be used to build a four-star hotel with up to 750 rooms.

He forecast the site could sell for HK$980 million as the plot is located near Sai Kung town centre and has a full sea view.