Swire Properties is developing a hotel in Shenzhen
Swire Properties has revealed plans to open an ultra-luxury hotel in Shenzhen under the The House Collective brand, marking the premier developer’s second announcement of a new hotel in less than a month.
As the first entry into Shenzhen for the Swire Pacific Group-controlled company, the hotel will offer 115 rooms and 44 serviced residences and will be a key part of a mixed-use development comprising Class A office towers and an event and exhibition space, Hong Swire Properties, listed in Kong, said on Monday in a version.
“Shenzhen is a shining example of economic reform and one of the fastest growing cities in the Greater Bay Area,” said Tim Blackburn, Managing Director of Swire Properties and Chairman of Swire Hotels. “We are very pleased to make our first foray into this market through Swire Hotels.”
The news comes after Swire Properties announced in late July that it would open a hotel in the Shibuya district of Tokyo under the brand The House Collective as part of a mixed project with Tokyu Group.
The pipeline takes shape
The Shenzhen hotel is part of a HK$100 billion ($12.7 billion) investment plan launched earlier this year to bolster Swire Properties’ portfolio of projects in Hong Kong, in Mainland China and Southeast Asia. Half of the funds were allocated to the mainland market, with a focus on retail-focused mixed-use developments in Tier 1 cities and emerging Tier 1 cities.
As part of the overall plan, Swire Hotels is stepping up its efforts to expand The House Collective, which was launched in 2008 with the aim of developing hotels with a cultural character and architecture unique to each property.
When it opens in 2025, the hotel in Shenzhen promises views of Shenzhen Bay and easy access to the city’s major thoroughfares, including the Shenzhen Bay Bridge. The site is within a five-minute drive of two major commercial developments, Shenzhen Bay Super Headquarters Base and Qianhai Cooperation Zone.
In addition to the two future hotels, The House Collective family includes The Upper House in Hong Kong, The Opposite House in Beijing, The Middle House in Shanghai and The Temple House in Chengdu.
“The House Collective has introduced guests to our distinctive brand of hospitality for the past decade,” said Toby Smith, Vice President of Swire Hotels. “This upcoming House property will be the culmination of our experience thus far and, upon opening, will meet the growing demand for exceptional hospitality services in the Greater Bay Area.”
Quarry Bay Buzz
Back home, Swire Properties announced earlier this month that its Two Taikoo Place office tower in Quarry Bay had reached a pre-lease commitment of nearly 50 percent.
Besides the Swiss bank Julius Baer, which confirmed its occupancy of four floors spanning nearly 100,000 square feet (9,290 square meters), other companies have pledged to move into the 41-story tower, including French asset manager Amundi, chemical giant BASF and Boston Consulting Group.
Swire Properties said a bank will lease more than 150,000 square feet of office space at Two Taikoo Place, representing nearly 20% of the tower’s leasable area. The agreement with the unidentified anchor tenant will be one of Hong Kong Island’s largest office rental deals in recent years, according to the developer.
The upbeat report follows a six-month period that saw the reversion of Swire Properties’ core office portfolio in Hong Kong take a hit, according to a quarterly income statement. released last week.
Referring to the percentage change in rent when renewing leases, entering new leases and rent reviews, Swire said its Pacific Place complex in Admiralty saw reversions of -18% to first half of 2022, while Taikoo Place recorded -3%.
Occupancy at Taikoo Place, which includes One Island East, One Taikoo Place and other office towers, fell slightly to 96% from 97% at the end of 2021, while leased space at Pacific Place rose at 97% to 98%, Swire Properties said. .