Legendale Hotel Beijing, a luxury hotel in the heart of the Chinese capital, has closed to guests and is set to be converted into an ultra-premium nursing home. Admission requires an insurance premium of more than 18.88 million yuan (US$2.8 million), a source said.
Beijing’s Dongcheng district housing authority recently disclosed that it had brought Ping An Life Insurance, part of China’s largest insurance group, on board to help redevelop the established five-star hotel.
Located near Peking Union Medical College Hospital, a top medical institution, and the Forbidden City, the hotel was designed in a classical European architectural style. It was operated by Macau Legend Development, an entertainment services firm in Macau.
The hotel officially closed on Saturday and would no longer accept guests, according to its closure notice.
“The senior living complex is being renovated and is expected to open next year,” said an insurance sector practitioner on condition of anonymity. “It follows management standards from top senior facilities in Japan and will offer cultural programmes such as small concerts by renowned singers.”
Non-residents who wish to attend membership events must pay a premium of 10 million yuan, she added.
Opened in 2008, the hotel hosted officials during that year’s Summer Olympic Games. The property was previously reported to be for sale, with an asking price of more than 3 billion yuan.
“Beijing has plenty of tourist resources, and its business districts should bring enough demand, so the hotel market should be sound in theory,” said Yan Yuejin, vice-president of the E‑house China Research and Development Institute, a Shanghai-based property consultancy.
“This case shows the structural imbalance in the hotel sector. Demand does exist in Beijing, but these properties are too high-end, and affluent visitors may not favour this location,” Yan said.
Downtown Beijing has many hotels but few high-end nursing homes. The new project targets local residents, though its location in a bustling business district had drawbacks, including limited greenery, he added. -- SOUTH CHINA MORNING POST
