Swire Properties to close The Opposite House in Beijing, group’s first hotel, as it eyes redevelopment to retail property
- The 99-room hotel, the group’s first, will close after 16 years to make way for an ‘innovative retail landmark’ in the Taikoo Li Sanlitun area
- From 2015 to 2023, the hotel segment contributed losses of between HK$41 million (US$5.2 million) and HK$524 million to the developer’s bottom line
Located in the upmarket Taikoo Li Sanlitun (TLS) area in the Chinese capital, the 99-room hotel, which is known for its emerald glass architecture designed by renowned Japanese architect Kengo Kuma, will cease operations on June 30.
“The latest plan represents Swire Properties’ long-term commitment to Sanlitun, with another major investment to enhance the retail infrastructure and experience at TLS,” the spokesman said. “We expect the plan to support the development of the Sanlitun business circle and contribute to Beijing’s transformation into an international consumption hub.”
Swire Properties, one of the largest commercial landlords in Hong Kong, reported revenue of HK$979 million (US$125 million) for its hotels segment in 2023. But the segment contributed HK$100 million in losses to the company’s shareholders, according to its annual report. Overall profit attributable to shareholders rose by a third to HK$11.6 billion last year.
From 2015 to 2023, the hotels segment contributed losses of between HK$41 million and HK$524 million to the developer’s bottom line.
The decision to close the hotel has been “very difficult”, the spokesman said, adding that it “played a significant role in establishing The House Collective as an internationally renowned brand”.
“We expect the performance of our hotels in Hong Kong and the Chinese mainland to continue to improve with more international visitors in 2024,” the annual report said. “We are moving forward with the next phase of growth for The House Collective and East brands with several exciting projects in the pipeline, including The House Collective hotels in Tokyo, Shenzhen and Xi’an.”
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Compared with 2022 when China’s borders were still closed under its zero-Covid policy, cross-border trips increased by 266.5 per cent in 2023, while inbound and outbound travel by foreigners grew 693.1 per cent.
TLS is Swire Properties’ first completed project in mainland China. The mixed-use development has more than 200 retail outlets, about 70 dining options and a cinema. The project has a total area of about 1.72 million sq ft.
