 2015-10-29 |
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In response to the slowing real estate market, YC (4306) and Shangyao (1316) are adjusting their investment strategies by focusing on the commercial travel sector. The recent government measures to cool the real estate market have led both companies to shift their focus towards investments in commercial hospitality projects.
YC Group will see contributions to its profits from the completion of the Wangzhou More project by the end of this year. Additionally, the Chongqing South Road building will be refurbished into a youth hostel, with an expected opening in Q4, which will help enhance revenue potential.
Shangyao, focusing on southern Taiwan, is responding to trends in weekend getaways and independent travel by planning to establish a hotel management company in partnership with Yongjie (4714). The company is investing nearly NT$900 million to build 28 business hotels in Tainan’s fifth phase and the northern district. Each hotel will be five stories high and feature 20 rooms.
Following the Lin Kou Motor Inn, YC plans to convert its buildings on Chengde Road and Chongqing Road into business and backpacker hotels, diversifying its offerings.
Wangzhou Construction previously acquired the building at No. 38, Section 3, Chongqing South Road, Zhongzheng District, Taipei City, for NT$310 million. Due to its proximity to attractions like the Botanical Garden, National Museum of History, and National Taiwan Arts Education Center, as well as local schools, the building will be developed into a small-scale accommodation hotel for international backpackers.
Similarly, YC's purchased office building on Chengde Road, Shilin, will be converted into the group's first operating site for its auto-motel business once the current lease expires. |
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