A controversial Polytechnic University (PolyU) training hotel that was given a multimillion dollar discount on land use transfer fees will open to guests tomorrow - and its rates will be similar to conventional hotels nearby.
The redeveloped former university staff quarters site in Tsim Sha Tsui boasts a 28-storey complex comprising three parts: a school of hotel and tourism management that takes up the first nine levels, housing for some university staff and the Hotel Icon.
Some hoteliers voiced concerns about unfair competition after the government charged the university a nominal land use transfer fee of HK$1,000 instead of the estimated market rate of up to HK$300 million.
But PolyU executive vice-president Nicholas Yang played down the competition concerns yesterday, saying the hotel was not designed to compete, but to train people for the industry. Macau has a similar training facility open to the public for many years.
Rates for the HK$850 million hotel's 262 rooms would be close to market levels, he said. 'We don't want to undercharge,' he said.
A standard room will cost about HK$1,900 from tomorrow. Hotel Nikko, which is near Hotel Icon, charged HK$2,090 for a standard room yesterday, while the Kowloon Shangri-La Hotel charged HK$2,700.