Hengqin authorities have approved five applications to convert office or commercial buildings into hotels.
According to local media, the Hengqin Guangdong-Macau Deep Cooperation Zone held a ceremony on Tuesday where the developers of these projects signed cooperation agreements with hotel operators.
However, the number of hotel rooms expected to be added to the market has not been disclosed. It is also unclear whether the conversions will involve entire buildings or just parts of existing vacant commercial properties.
Previous reports revealed the application criteria, which include the following requirements: the applicant must be a single property owner; the hotel must have at least 50 rooms, with a minimum room size of 13 square meters; the building must be equipped with essential facilities such as a lobby, restaurant, and necessary service rooms. Additionally, the conversion must be for a period of at least eight years.
Su Kun, Deputy Director of the Executive Committee of Hengqin, stated that since the policy was launched in July, more than ten companies have officially submitted applications, with over a hundred others making inquiries.
Hengqin authorities emphasized that, to enhance property owners’ understanding of hotel brands and foster collaboration, seven hotel brands were invited to share their business philosophies and management models.
Representatives from the hotel industry expressed that the policy would improve the quality of accommodation and services in the Cooperation Zone. Meanwhile, property owners highlighted that the policy provides new opportunities for utilizing idle buildings and opens up fresh collaboration possibilities.
As reported by AGB, Galaxy Entertainment Group (GEG) has recently acknowledged that hotel capacity could become a significant constraint on Macau’s long-term growth. The company is hopeful that further policy breakthroughs will facilitate the development of Hengqin, which could help alleviate some of the current limitations in the hotel sector.
As of August 2023, Hengqin has over 8,000 hotel rooms, approximately 2,000 of which are designated for business or leisure use (apartments). Reports suggest that Hengqin may increase its hotel room inventory to 100,000 in the future, although no official confirmation has been made regarding the eventual scale of hotel development on the island.
In related news, the Macau Light Rapid Transit (LRT) system has recently launched the Hengqin Line, enhancing connectivity between Macau and Hengqin, particularly between Cotai and Hengqin. This new transport link is expected to alleviate traffic congestion and improve overall access to the region.
