Hong Kong could see another cinema shut down in a prime retail district after the management of IFC Mall began informally sounding out potential tenants for the roughly 20,000 sq ft (1,858 square metres) occupied by Palace IFC, whose lease expires at the end of the year, according to people familiar with the matter.
Sun Hung Kai Properties (SHKP), which manages the mall in Central, had been reaching out to select industry contacts to explore options as the struggling cinema business had generated weaker foot traffic, the people added.
“With the space’s size and its position in the mall, it is less straightforward to find a domestic tenant, so they may need to explore overseas alternatives,” a property agent involved in the discussions said, adding that premium shopping centres in Hong Kong were always keen to bring in new names. No formal leasing appointment has been made.
SHKP declined to comment. The mall is jointly owned by SHKP and Henderson Land.
Palace IFC is operated by Edko Films, a film distributor which also manages 13 cinemas and 77 screens in Hong Kong under the Broadway Circuit brand. The upscale Palace IFC has five screens and 544 seats. Edko did not respond to a request for comment.
The move comes amid a wave of cinema closures that began during the Covid-19 pandemic and has persisted as audiences drift to streaming platforms and spend more across the border in mainland China.
Overall box office revenue in Hong Kong fell 16 per cent year on year to HK$1.13 billion (US$145 million) in 2025, the lowest level in 13 years and extending a multi-year decline, according to Hong Kong Box Office Limited. Takings in 2024 totalled HK$1.34 billion, down 6 per cent from 2023.
Local science fiction film Back to the Past recently became the city’s highest-grossing movie in its opening week, but the broader market remained under pressure.
Hong Kong has seen at least 35 cinemas shut down – with some reopening under a different name – since 2020, according to the Culture, Sports and Tourism Bureau. There were currently 52 cinemas in operation, including six that had closed but were later reopened by other exhibitors.
Operators cited high rents, volatile box office performance and a shrinking movie-going audience as key challenges, with some choosing not to renew leases upon expiry.
Emperor Cinemas’ branch at MOSTown in Ma On Shan ceased operations in January. CineArt Cinema has since announced plans to open a new branch at the same site on February 13. -- SOUTH CHINA MORNING POST
