Dr. Gleb Tsipursky – The Office Whisperer
Cat Johnson – Coworking Marketing Maven
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Andrea Pirrotti-Dranchak – Competitive Advantage
Jonathan Price – CRE & Flex Expert
Jeremy Fennema – Tech Innovation Alchemist
Hong Kong may see up to $300 million in real estate transactions this year, with the majority including hotels being converted into coliving spaces according to analysis from JLL.
JLL added that the volume may even grow to $500 million next year.
Driving this growth are coliving operators that have led efforts to acquire and convert hotels during a tumultuous time for the hospitality industry.
One such competitor in this market is Weave Living, which has plans to add to its current portfolio of five properties in Hong Kong. Recently, the coliving firm purchased a hotel building in Kai Tak, Kowloon for nearly $49 million, which will likely be turned into a new coliving project.
“We can expect the coliving sector to keep growing in the coming years as many operators are backed by institutional capital looking for high paced growth,” said Corey Hamabata, senior vice-president at JLL Hotels and Hospitality Group.
Although hotel occupancy levels have improved since the beginning of the pandemic, revenues are still slow to rebound. In fact, revenue per available room is still just 40% to 50% of earnings seen in 2018 and 2019 according to JLL.
On the other hand, JLL estimates that the profit margin for coliving companies is likely to be around 65% to 75%. This is compared to a three-star hotel’s profit margin of around 55% to 65%.
