Story perspectives

China's Hotels Transform Offices Amid Weak Market

1/18/2026

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Summary

Story summary

In China, mid-range hotel operators are leasing office buildings for conversion into guest accommodations due to a weakening office market.
The trend shows multiple hotel brands co-leasing floors within single buildings, especially in Hangzhou.
Yongjin Plaza now hosts around 10 hotels, including Home Inn, alongside restaurants and luxury stores.
James Macdonald of Savills notes operators seek lower-cost, well-located spaces, while landlords aim to reduce vacancy rates, potentially stimulating the market.

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Story summary

In China, mid-range hotel operators are leasing office buildings for conversion into guest accommodations due to a weakening office market.
The trend shows multiple hotel brands co-leasing floors within single buildings, especially in Hangzhou.
Yongjin Plaza now hosts around 10 hotels, including Home Inn, alongside restaurants and luxury stores.
James Macdonald of Savills notes operators seek lower-cost, well-located spaces, while landlords aim to reduce vacancy rates, potentially stimulating the market.