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Property developers may be in for a financial windfall after their skyscraper erupted into flames in Hong Kong.
The 42-story Kimpton Hotel project — now ravaged by the disastrous fire — was expected to boast 500 rooms across 340,000 square feet of interior space.
The luxury skyscraper was almost completely built when it went up in flames early Friday in Tsim Sha Tsui. The cause is currently under investigation.
MASSIVE HONG KONG FIRE CONSUMES SKYSCRAPER UNDER CONSTRUCTION, RAINING BURNING EMBERS ONTO STREET
An under-construction skyscraper is seen after a blaze is put out at Tsim Sha Tsui in Hong Kong March 3, 2023. (REUTERS/Tyrone Siu)
An under-construction skyscraper is seen after a blaze is put out at Tsim Sha Tsui in Hong Kong March 3, 2023. (REUTERS/Tyrone Siu)
A fire burns at a high-rise building under construction in the Tsim Sha Tsui district in Hong Kong on March 3, 2023. (PETER PARKS/AFP via Getty Images)
Compensation from the insurance company is likely to be record-setting due to the “contractors’ all risks” policy purchased for the project, according to the South China Morning Post.
“Usually, contractor-risk coverage only pays out at about HK$20 million or so,” Legislative Council Finance Committee Chairman Chan Kin-por told the outlet on Friday.
Chan continued, “The compensation amount will be high because the building is almost completed, as the amount will pay to rebuild the completed part. The later the damage occurs during the construction period, the higher the sum that will need to be paid.”
13 HOSPITALIZED AFTER FIRE ERUPTS AT HONG KONG’S WORLD TRADE CENTER
A fire burns at a high-rise building under construction in the Tsim Sha Tsui district in Hong Kong on March 3, 2023. (PETER PARKS/AFP via Getty Images)
Chan estimated the insurance claim could reach anywhere from $25 million to $500 million in compensation.
The Kimpton was being constructed on the site of Hong Kong’s historic Mariners’ Club. The former club building was torn down ahead of the project and the club intended to move into the new property.
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People watch as a fire burns at a high-rise building under construction in the Tsim Sha Tsui district in Hong Kong on March 3, 2023. (PETER PARKS/AFP via Getty Images)
The widely-reported fire broke out after midnight — embers and burning debris rained down on the streets below as firefighters attempted to control the inferno.
Photos and videos from the scene show the skyscraper engulfed in flames, and the sound of explosions from within the structure were reported.
