Weave Living Boosts Hong Kong Portfolio with Strategic Hotel Acquisitions

Hong Kong's rental housing market is seeing significant expansion as Weave Living actively acquires and converts hotel properties into co-living and rental apartments. The company is strategically increasing its portfolio, aiming to meet the growing demand for flexible and affordable housing solutions in the city.

Key Takeaways

• Weave Living is in talks to acquire two more Kowloon hotels, potentially adding nearly 800 rooms to its portfolio.
• The company is diversifying beyond co-living into traditional multi-family rental properties.
• Investor interest in Hong Kong hospitality assets for conversion into rental housing is on the rise.

Strategic Expansion Through Hotel Acquisitions

Weave Living is reportedly in discussions to acquire two Kowloon hotels: the 598-room Hotel Cozi Harbour View and the 199-room Hotel Ease Mong Kok. If these deals materialize, they would add 797 rooms to Weave's existing portfolio of 1,500 rooms across Hong Kong and Singapore, marking a significant expansion. These potential acquisitions are part of a broader trend of reviving interest in Hong Kong's hospitality assets, with total transactions in the sector reaching HK$3.2 billion in the third quarter of 2022.

Diversification into Multi-Family Rentals

Beyond hotel conversions, Weave Living is also expanding into the traditional multi-family rental market. The company has acquired properties like the one at 6-8 Hospital Road in Mid-Levels, which is being refitted as its first traditional rental apartment property. This move signifies a deliberate shift from its co-living origins to a broader "Weave Living" brand, encompassing serviced apartments and multi-family housing.

Investor Confidence in Rental Housing

The rental housing sector in Hong Kong is attracting significant investor attention. Institutional investors like PGIM Real Estate are actively acquiring hotel assets for conversion into rental housing, citing favorable demographics and strong rental demand. This trend is supported by government initiatives aimed at attracting foreign talent, which is further boosting demand for rental apartments. Weave Living's strategy aligns with this market dynamic, positioning itself as a key player in providing adaptable housing solutions.

Sources

• Weave Living in Talks for Two More Hong Kong Hotels, Mingtiandi.
• PGIM Real Estate Buying Ovolo Hotel in Hong Kong's Sheung Wan, Mingtiandi.
• Weave Moves into Multi-Family in Hong Kong's Mid-Levels, Mingtiandi.
• Dash Living Collaborates With Ovolo Hotels To Launch Two New Generation of Serviced Rental Solutions In Hong
  Kong, Media OutReach Newswire.
• Hong Kong-based Weave Living opens new rental property in Robinson Road, Hong Kong, Yahoo! Finance Singapore.