Hong Kong average room rates surpass pre-Covid period in 2019: CBRE
The Hong Kong Hotels Association (HKHA) reported common room tenancy rates of 93.4% and regular room rates of HK$ 1,715 ($295.50), the two of which are with or over the levels assessed for the similar vacation time period in 2019, says a CBRE report on the Hong Kong hotel market news on March 26.
The accommodation industry produced HK$ 29.2 million in revenue in 2023, on the same level with 2019 rates. According to the Hong Kong Tourism Board (HKTB), normal daily levels of HK$ 1,444 in January 2024 were 9% greater than in January 2019, and overall RevPAR (earnings per available bedroom) was 1% higher than in the same duration in 2018.
The upturn in hotels and resort functionality has been driven by the return of worldwide travellers, mostly mainland Chinese travelers, that represent over 79% of all incoming arrivings over the past 12 months, states CBRE.
Operating performance for the high-end and upscale segments in Hong Kong is anticipated to improve in 2024, with these properties having observed reasonably slower cost appreciation compared to other tier 1 industry in the Asia Pacific location.
According to CBRE, private capitalists are going to continue to generate procurements in 2024, with a value-add and opportunistic strategy as their primary emphasis. Co-living, student accommodation, and serviced residence owners are projected to go on broadening their presence by capitalising on the total scarcity of such estates in the living market and the demand presented by the Top Talent Pass Scheme (TTPS).
Grand Dunman Singhaiyi Group Ltd
Inbound arrivals boosted to about 34 million, with mainland Chinese visitors representing over 79% of all arrivals in 2023. Over 1.46 million traveler arrivings were documented throughout the Lunar New Year holidays in February 2024, of which Chinese comprised 1.25 million (85.6%). The numbers have actually exceeded the degrees recorded over the very same period in 2018.
HKTB anticipates a complete improvement of global tourist by the end of 2025, sustained by a continuous increase of mainland Chinese visitors.
“With a significant margin still existing between historical and current over night viewers numbers, CBRE is optimistic that there will be additional operational growth in Hong Kong SAR in 2024, propelled by a recuperation in occupancy in well-managed properties,” claims the information.
While hotels and resort companies have boosted noticeably over the past one year, the investment market stays tough. “Expectations are that loaning prices will certainly begin to decrease in mid-2024 in conjunction with the Federal Reserve,” mentions the report. Hence, it is assumed to advertise financial investment event. However, CBRE notes that an unfavorable take and skepticism over when these prices are going to begin to move could restrict the probabilities of a solid uptick in venture volume.
