Wan Chai Clock Hotel Becomes Owner of Its Own Premises After Creditor Sale
HK01 · 2 SOURCESabout 1 hour ago2 MIN
Summary
Victoria Hotel, the iconic Wan Chai establishment operating since 1986, has completed its transformation from tenant to owner by purchasing its own premises from a creditor for HK$72.8 million. The transaction represents a dramatic reversal of fortune for the Tang family, who acquired the property at peak market prices in 2018. The hotel, with approximately 40 rooms and long known as a "clock hotel" destination, had been renting the premises for over 20 years before seizing the opportunity to acquire the asset at a steep discount.
Key Points
- The property spans Lockhart Road 205-217 and Fleming Road 31-33, LIDAK Building, comprising ground floor shops and two upper floors totaling 13,234 to 14,200 square feet
- The creditor initially listed the property at HK$350 million but accepted HK$72.8 million, representing a 79% reduction from the asking price
- The Tang family purchased the entire portfolio in June 2018 for HK$250 million, making the current sale a loss exceeding HK$177 million or over 70% of original value
- Victoria Hotel, trading as WIDE WILL HOLDINGS LIMITED, previously paid monthly rent reaching HK$700,000 at peak but now pays approximately HK$250,000
- Room rates currently start at HK$345 for two hours and HK$500 for overnight stays until 2pm checkout
- A separate Kwun Tong hotel property held by the Tang family was transferred to Nanyang Commercial Bank in January 2025 for HK$1.87 billion, representing a further loss of HK$430 million
Why It Matters
The acquisition demonstrates how struggling commercial property owners in Hong Kong are being forced to sell at significant losses, while established tenants with long-term business models see opportunities to consolidate assets. This transaction reflects broader challenges in Hong Kong's commercial property market, where values have declined substantially from their 2018 peaks. For Victoria Hotel, becoming the owner provides long-term cost stability and eliminates dependency on landlord decisions, particularly valuable in an uncertain retail environment.
The acquisition demonstrates how struggling commercial property owners in Hong Kong are being forced to sell at significant losses, while established tenants with long-term business models see opportunities to consolidate assets. This transaction reflects broader challenges in Hong Kong's commercial property market, where values have declined substantially from their 2018 peaks. For Victoria Hotel, becoming the owner provides long-term cost stability and eliminates dependency on landlord decisions, particularly valuable in an uncertain retail environment.