Leasing for One Exchange Square Hong Kong

Kimpton Hotel


The Kimpton Hotel will have higher costs in contrast with other locations. This is because Hong Kong is one of the most expensive real estate markets in the world. As it is sitting, at a cross roads between mainland China and the West based upon the cultural traditions and history it embraces. At the same time, the location of One Exchange Square; is considered to be prime real estate. This is due to the fact that it sits on the water front of the Victoria Harbor. (McMillan, 2012)

Estimate cost of leasing for One Exchange Square Hong Kong (total of 8th floor) yearly

Its total square footage is 2 million ft. The structure consists of 88 floors. The hotel will be located on the 8th floor. Currently, UBS is the primary renter for the facility with them paying a total of $42 million per year to lease it. This means that the average cost of leasing the 8th floor will be $1.74 million per year. These figures were calculated by taking the total square footage (2 million) and dividing it into 88 floors (22,727). (McMillan, 2012)

At the same time, the total rent that was paid for each section was calculated by dividing the amount which being paid for rent on a yearly basis ($42 million) into 2 million square feet ($21 per square foot). This number was multiplied into 7 thousand (i.e. The total amount of space required for the location). The results are that the Kimpton Hotel will be paying a total of $147 thousand per year for leasing its location. (McMillan, 2012)

However, the costs of renting it will more than likely increase by 10 fold in the near future. This is because the building is located where there are a lot of business and foreign travelers. As a result, this means that the costs of renting the 7 thousand square feet on the 8th floor will increase by $210 per square foot a year. (McMillan, 2012)

This will raise the rent to $1.47 million per year. Thus, the costs of renting the location will start out at $147 thousand and will grow to $1.47 million in the future. This will have an impact on fixed expenditures and what the hotel is paying for this. (McMillan, 2012)

Estimate cost of renovating per square feet (7,000 Sq ft in total)

Given the fact that the Kimpton is focusing on high end cliental means that these costs will be much larger for renovations. In general, the average expenses paid for these expenses will be around $18 thousand per square foot. However, this will be much higher due to the fact that the firm will concentrate on making these facilities more state of the art than the average luxury property. This means that costs for completing these projects will be about 2.5 times higher than normal (which is around $45 thousand per square foot).

As a result, the costs of renovating the new location will range between $18 thousand and $45 thousand per square foot. For more realistic calculations, the higher number was selected because of the total amounts of work that will be completed. This means that the total expenses will come in around $415 million.


To recoup the costs of building the location, the hotel will charge guests with rates that are higher than some facilities. Yet, they are competitively priced to ensure that the location can maintain an occupancy rate of at least 90%. This requires conducting a detailed analysis as to how these various objectives will be achieved.

Estimate one year revenue for 100 rooms (7000 Sq ft)

The estimated revenue for maintaining 100 rooms at minimum occupancy rate of 90% is $3.25 million per year. This was calculated based upon charging an average rate of $119.00 per night. The average nightly income will be $10,710. When this is multiplied by 365 days, these figures will increase to $3.90 million.

At the same time, the hotel will have other services which will increase the overall profit margins even further. This will take place with the restaurant and bar which is estimated produce revenues of $2.5 million. At the same time, additional services will be offered to guests such as: dry cleaning, limousines, movies, refreshments / food, fitness center and massages.

These products will generate an additional $1.4 million per year. While the spa, is expected to produce revenues of $2.3 million. When these different figures are added together, the Kimpton Hotel is expected to produce revenues of $10.1 million per year.

Compare the competitors’ price and setting the price of room (aiming at 10% -15% less than the competitors

The rooms for the Kimpton Hotel will be set at least 15% beneath the lowest priced five star competitors in these areas. However, in other cases this will be dramatically lower than other facilities. Evidence of this can be seen by looking at the below table which is highlighting the rates of various hotels with their prices.

Rates of Other Five Start Hotels in the Vicinity of One Exchange Square



Royal Plaza


Harbor Grand Knowlon


Regal Hong Kong


Harbor Grand


Luxe Manor


Nikko Hotel


Crown Plaza


(“Five Star Hotels,” 2013)

The rate of $119.00 per night is 15% lower than the least priced five star hotels. This will help to attract a number of guests and ensure that there are high levels of occupancy.

Target for occupancy rate is 90%

The current price will ensure that the Kimpton Hotel maintains an occupancy rate of at least 90% every night. To attract more guests; specials can be offered from: groups, conventions and tours which will be utilizing the facility. This will ensure that the facility has lower rates in contrast with competitors and can offer them with more for less money. Moreover, the location will help to make certain that most visitors have another facility they can go to. That is closer to various attractions and has outstanding views of the Victoria Harbor.

Prepare Market share among the competitors in the industry

Inside the industry itself, there is wide range of competitors. In some cases, they can charge up to $549.00 per night for rooms. While in other situations, similar facilities can have prices that start at $149.00. The below table is illustrating the overall market share of the various hotels inside the sector.

Market Share for Five Star Hotels inside the Hospitality Sector


Percentage of Market Share

Tsim Sha


Causeway Bay


Yau Ma


Central Admiralty


Hung Hom


Kwi Tsing




Inland East


Sha Tin


Other Hong Kong Facilities


These different figures are showing how the Tsim Sha controls the largest segment of the marketplace with this accounting for 27%. All of the others maintain smaller levels inside the hospitality industry. (“Hotel Industry in Hong Kong,” 2007)

Prepare revenue per available room for Kimpton

The total revenues per room will be approximately $169.00. This is based upon factors such as the rate ($119.00), the cost of renting movies ($20.00) and utilizing some of the food / beverages provided ($30.00). These different variables are taking into account the needs of cliental and the services / products they will be using in the process. This means that there will be added levels of income beyond the room rate. (“Hotel Industry in Hong Kong,” 2007)

After 1 year of operating, estimate amount of money that Hotel will receive (consider extra revenue such as spa, bar, restaurant, and fitness centre)

The total amounts of revenues that are expected to be generated from the additional services provided by the hotel are $6.2 million. The below table is highlighting the returns that will be generated from these amenities. (“Hotel Industry in Hong Kong,” 2007)

1-Year Revenues for Additional Services

Services / Products


Restaurant / Bar

$2.5 million


$2.3 million

Fitness Center

$1.4 million


$6.2 million

(“Hotel Industry in Hong Kong,” 2007)

These numbers are illustrating how the other services will generate additional sources of income for the hotel every single year. This will enhance the facility’s profit margins and revenues during this time. (“Hotel Industry in Hong Kong,” 2007)

Sales Volume

The sales volume will be focused on specific segments and reaching out to them. This will enhance the Kimpton Hotel’s ability to attract a larger demographic of customers. When this happens, management can more effectively predict revenues and maintain continuous streams of income. (“Hotel Industry in Hong Kong,” 2007)

Our target market is unmarried single women (why is this target attractive?)

Unmarried single women have the ability to travel more and will spend larger amounts on various services provided by the hotel. This will increase the revenues beyond what someone is paying for a single room. At the same time, they have the ability to stay longer inside the facility and will frequently utilize the Kimpton. (“Hotel Industry in Hong Kong,” 2007)

We are targeting 80% of Chinese business person (from which cities they come from and what are their job positions)

Chinese business people have more money to spend than other segments of the population. This is because as the country is rapidly growing, they are spending larger amounts of time in Hong Kong and will seek out additional services. In the future, this segment is only increasing in affluence and wealth. Those who are focusing on reaching out them, have the ability to create a unique brand image (which will have a positive impact in their minds). This is the point they will choose the Kimpton as their location to stay at when they are on the road. (“Hotel Industry in Hong Kong,” 2007)

Point out International American business tourists who will be our 20% of target market. Since they already familiar with the concept of boutique hotel and support from American


The international American business tourists are repeat customers. They will come in and out of Hong Kong regularly. This means that they will utilize variety of services and spend tremendous amounts of money in the process. At the same time, they understand what it feels like to stay at a boutique hotel and want to spend more time inside these locations. (“Hotel Industry in Hong Kong,” 2007)

The Kimpton is one such facility which has the ability to offer them with everything they are looking for at a reduced price. This means that they will spend more nights at the location and will look favorably based upon its close proximity to: various attractions, businesses and resources. This will create value in their minds and enhance their ability to save time by not having to go to facilities at the other end of the city. (“Hotel Industry in Hong Kong,” 2007)

Purpose of these people coming to visit Hong Kong

The primary purpose of these people coming to Hong Kong is for them to have a sense of freedom, conduct business and to relax. The Kimpton has the ability to address all of these needs by offering everyone with quality, affordability and a unique location. These different elements are important, as they will provide more than competitors and can help to create a unique brand image in the minds of customers. (“Hotel Industry in Hong Kong,” 2007)


Five Star Hotels. (2013). Hotel Club. Retrieved from: http://www.hotelclub.com/shop/hotelsearch?type=hotel&hotel.keyword.key=Hong%20Kong&hotel.rooms[0].adlts=2&hotel.rooms[0].chldAge[0]=&hotel.rooms[0].chldAge[1]=&hotel.rooms[0].chldAge[2]=&hotel.rooms[0].chldAge[3]=&hotel.rooms[0].chldAge[4]=&hotel.rooms[0].chlds=0&hotel.type=keyword&hotel.rating=5&hotel.chkin=14/05/13&hotel.chkout=15/05/13&search=Search&DCSext.tld=hotelclub.com&curr=USD&locale=en_AU&lpid=plhot

Hotel Industry in Hong Kong. (2007). HK EX-News. Retrieved from: http://www.hkexnews.hk/listedco/listconews/sehk/2007/0319/01881/ewp115.pdf

McMillan, A. (2012). Hong Kong Headache. Reuters. Retrieved from: http://uk.reuters.com/article/2012/02/20/ubs-hongkong-rent-idUKL4E8DF2SC20120220

McMillan, A. (2010). In Hong Kong. New York Times. Retrieved from: http://www.nytimes.com/2010/12/10/greathomesanddestinations/10iht-rehk.html?_r=0

Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

Online Academic Help With Different Subjects


Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.


Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!


While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.


Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.


In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.


Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.


We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!


We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.


Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment  Help Service Works

1.      Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2.      Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3.      Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4.      Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essaysmile and order essay PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!

order custom essay paper