Macau fever is spreading to the physical property market with the sale of an island hotel at a price comparable with its Hong Kong counterparts.
It has been reported that Wing On Travel (Holdings) bought Kingsway Hotel, about three minutes' drive from Macau's pier, for more than $500 million - or about $1.2 million per room. The hotel charges $380 to $1,100 per room.
However, it is unknown whether the transaction price includes the hotel's casino.
The price was as high as some recent comparable hotel transactions in Hong Kong. The Pearl Grand Parc and Hotel, a defunct three-star hotel in Western, was sold for about $1.21 million per room in April this year. New Cathay Hotel in Causeway Bay was sold for about $900,000 per room.
Wing On has been suspended from trading since November 18 pending release of an announcement relating to the acquisition of a controlling stake in a company that has a substantial interest in a hotel.
Market watchers said the Kingsway price was high, even though prices for Macau residential and commercial properties have risen more than 50 per cent this year. They are still significantly cheaper than Hong Kong properties.