HK&S expects to achieve much higher average rent for new space after revamp
Most of the new retail and food and beverage space in the Peak Tower has been booked for the relaunch in August, according to owner Hongkong and Shanghai Hotels.
The hotel operator, which owns the Peninsula Hong Kong, said the $100 million revamp of the tower would add about 7,500 square metres to the existing 25,000 square metres of retail and food and beverage space.
The group's managing director and chief executive Clement Kwok King-man said he expected the average rent for the new space to be 'significantly' higher.
'We have almost filled up the new space. Quite a few of the contracts have already been signed. Every single space is under discussion at the Peak Tower,' he said.
Mr Kwok said occupancy was 100 per cent before the renovation began and he expected the tower to be fully occupied after it reopened in August.
In 2004, the average rental was $39 per square foot, with the tower generating rental revenue of $23 million. But Mr Kwok declined to specify the new rent for those signed contracts.