Leading hotel operator Shangri-La Asia (0069) is pressing ahead with plans for a 599 room luxury hotel after submitting a planning application in Hung Hom district in Kowloon, an area which was previously dominated by local property giant Cheung Kong (Holdings) (001).
Shangri-La Hotel (Kowloon), a subsidiary of Shangri-La Asia submitted its planning application last month to the Town Planning Board for which the public consultation ended last Friday.
It plans to build a five star hotel building 18-storeys high over a basement with a gross floor area of 62,492 square metres (672,664 square feet) of which hotel will account for 44,115 square metres (474,854 square feet).
Restaurants and shops will take up GFA of 7,627 square metres (82,097 square feet) with a public transport interchange of 10,750 square metres (115,713 square feet).
The hotel carpark will be located in the basement.
“The unique wave-like structure of the proposed development with a stepped building height profile will provide a high visual interest and vitality along the waterfront as well as to the surrounding area,” the planning statement to the application said.
The planning statement noted that the proposed Whampoa MTR station, part of the Kwun Tong Line extension, would be only half a kilometre from the proposed hotel.
The planning statement did not give details of the proposed construction period.
The hotel operator and its planning consultant did not respond to enquiries by Construction Post regarding the timetable for implementation or estimated cost.
According to the Construction Market Intelligence report for the third quarter of 2012 compiled by construction cost consultants Rider Levett Bucknall, the cost a five star hotel ranged from HK$27,700 to HK$33,800 per square metre of GFA.
With the hotel portion at 44,115 square metres and assuming a middle figure of HK$30,000 per square metre for cost then total cost just for the hotel portion alone could top HK$1.32 billion.
Shangri-La beat off three other competitors including Cheung Kong, Sun Hung Kai Properties (0016) and Sino Land (0083) to bag the 15,623 square metre (168,166 square feet) site in Hung Hom with a winning bid of HK$2.38 billion in December 2011.
Cheung Kong along with its subsidiary Hutchison Whampoa (0013) was previously the dominant player in Hung Hom with projects such as Whampoa Garden, Harbour Plaza Metropolis next to Hung Hom station and One and Two Harbourfront.