The Excelsior, the iconic waterfront hotel built on the very first plot of land sold during the British colonial era, will shut at the end of March next year for redevelopment into an office tower, according to its owner.
Mandarin Oriental International will demolish the four-star hotel and build a commercial building on the site, which will take about six years. The total development cost is about US$650 million, according to the company’s announcement on Tuesday morning.
The company did not reveal the size of the redevelopment.
Mandarin Oriental decided to put the hotel on the market in June last year as the site can yield higher values when it is turned into commercial offices.
But the sale was called off in September last year because Mandarin received bids that failed to meet its expectations. The 848-room hotel at the time was estimated to be valued at over HK$30 billion (US$3.83 billion).
Built on Plot 1, the very first land parcel sold after Hong Kong became a British colony in 1841, the site was originally a warehouse of the British conglomerate Jardine Matheson, located on Gloucester Road across the Royal Hong Kong Yacht Club, and around the corner from Victoria Park.
James Riley, group chief executive of Mandarin Oriental Hotel Group, said: “The Excelsior has always been an important and much-loved hotel in the group’s portfolio. We will ensure there are plenty of opportunities over the next few months for local and international guests to visit the property and celebrate 45 years of memories.”