Paliburg to build more than 1,000 hotel rooms
Paliburg and its partner Regal Hotels International will add more than 1,000 hotel rooms in the next three years despite fears of further measures to restraint growth of mainland visitors.
The medium-sized developer said it did not foresee any immediate policy to cap the number of mainland tourists - which made up more than half of its hotels' occupancy.
Paliburg chief operating officer Donald Fan Tung said the "fuss" created by the reports about mainland tourists buying up milk powder had led to some calls for mainland visitor numbers to be capped. "But so far I don't see any solid government proposals," he said.
P&R Holdings, a joint venture between Paliburg and Regal, plans to turn a To Kwa Wan site it bought on February 28 into a 22-storey hotel that will provide 340 rooms by 2016. The acquisition price and construction costs will total more than HK$860 million.
The joint venture has three other hotel projects under construction, in Sheung Wan and Fortress Hill, which are due to begin operating over the next two years and yield 682 rooms.
Chief Executive Leung Chun-ying said last month Hong Kong should not blindly aim to increase the number of visitors.
Meanwhile, Fan said measures to double stamp duty on the sale of properties exceeding HK$2 million, and impose heavier stamp duties for quick resales by corporate and non-permanent-resident buyers would make its luxury house project in Regalia Bay more attractive to buyers.
This was because 12 of the project's 19 villas were held by shell companies, meaning buyers could save the stamp duties - which would total nearly 25 per cent of the house prices - by just buying the company.