SWIRE TO SHUT HOTEL IN TAIKOO LI SANLITUN
The Opposite House in Beijing, the group’s first such property, will cease operations after 16 years to make way for an ‘innovative retail landmark’
Swire Properties is shutting down the group’s first hotel, The Opposite House in Beijing, after 16 years to make way for an “innovative retail landmark”, according to a spokesman.
Located in the upmarket Taikoo Li Sanlitun area in the capital, the 99-room hotel, known for its emerald glass architecture designed by renowned Japanese architect Kengo Kuma, will cease operations on June 30.
“The latest plan represents Swire Properties’ long-term commitment to Sanlitun, with another major investment to enhance the retail infrastructure and experience at [the area],” the spokesman said.
“We expect the plan to support the development of the Sanlitun business circle and contribute to Beijing’s transformation into an international consumption hub.”
Swire Properties, one of the largest commercial landlords in Hong Kong, reported revenue of HK$979 million for its hotel segment last year. But the segment contributed HK$100 million in losses to the company’s shareholders, according to its annual report. Overall profit attributable to shareholders rose by a third to HK$11.6 billion last year.
From 2015 to 2023, the hotel segment contributed losses of between HK$41 million and HK$524 million to the developer’s bottom line.
The decision to close the hotel had been “very difficult”, the spokesman said, adding it “played a significant role in establishing
The House Collective as an internationally renowned brand”.
“We expect the performance of our hotels in Hong Kong and on the mainland to continue to improve with more international visitors in 2024,” the annual report said.
“We are moving forward with the next phase of growth for The House Collective and East brands with several exciting projects in the pipeline, including The House Collective hotels in Tokyo, Shenzhen and Xian.”
Last year, the mainland recorded 424 million inbound and outbound trips, down by 36.7 per cent from 2019, according to data from the National Immigration Administration. Foreign visitors made up a mere 8.4 per cent of the 2023 total, compared with 14.6 per cent in 2019.
Compared with 2022 when China’s borders were still closed under its zero-Covid policy, cross-border trips increased by 266.5 per cent last year, while inbound and outbound travel by foreigners grew by 693.1 per cent.
Taikoo Li Sanlitun is Swire Properties’ first completed project on the mainland. The mixed-use development has more than 200 retail outlets, about 70 dining options and a cinema. The project has a total area of about 1.72 million sq ft.
In 2022, Swire Properties unveiled a HK$100 billion, 10-year investment plan that would allocate half of its capital expenditure to projects in China’s Tier 1 cities, specifically in the Greater Bay Area. About HK$30 billion was earmarked for reinforcing office developments and HK$20 billion for residential projects in Hong Kong and Southeast Asia.