Regal’s US$194 million hotel sale highlights investor push into Hong Kong student housing

Regal Hotels International Holdings and its units have sold the 494-room Regal Oriental Hotel for about HK$1.52 billion (US$194 million) to the real estate investment arm of Centaline Group, which operates one of Hong Kong’s largest property agency networks, to be converted into a student hostel.Regal Hotels and affiliates Century City International Holdings and Paliburg Holdings agreed to dispose of the 17-storey hotel on Sa Po Road, including two basement floors, the group said in a filing with the Hong Kong stock exchange on Monday.The buyer was identified as Blue Sky Properties, a Hong Kong-based unit of Centaline Strategic Investments.The purchase amount was about 7.8 per cent lower than the appraised value of HK$1.65 billion at the end of 2025. The sale also included HK$753 million of debt tied to the asset, which would be assumed by the buyer, the filing said.The property would be rebranded under Centaline’s student accommodation platform CampusOne Communities, the company said in a separate statement.Among commercial buildings, hotels are favoured for conversion into student hostels due to lower costs, according to multinational firm Arup. Photo: Sam TsangThe deal highlights investors’ appetite for student accommodation in Hong Kong, where consultancy Savills estimated a deficit of about 88,000 beds.