Regal Hotels sees Olympics as a winner for occupancy rates

Regal Hotels International Holdings is riding the wave of visitors coming to the Olympic equestrian competitions, unlike some other Hong Kong hotels that have seen little increase in bookings from the city's role as event host.

Regal Riverside Hotel in Sha Tin, one of the appointed hotels for officials and journalists, had achieved satisfactory advance booking, said executive director Poman Lo, who expects the rooms to fetch higher rates as the Games approach.

The average room rate of the group's five local hotels saw double-digit growth year on year in the first quarter, said Regal Real Estate Investment Trust, which runs the hotels.

Last month, Federation of Hong Kong Hotel Owners executive director Michael Lee Hon-sing had described advanced bookings for August as 'disappointing', as the occupancy rate for the Games period was just 50 per cent.

Nevertheless, chairman Lo Yuk-sui is bullish about the hotel market, saying his group will apply to bid for government plots designated for hotel development.

Separately, parent Paliburg Holdings is conducting a preliminary study to convert its office building in Wan Chai into a hotel.