Hong Kong average room rates surpass pre-Covid period in 2019: CBRE
Incoming arrivals raised to approximately 34 million, with mainland Chinese travelers representing over 79% of all arrivals in 2023. Over 1.46 million tourist arrivings were documented throughout the Lunar New Year holidays in February 2024, of which Chinese composed 1.25 million (85.6%). The numbers have actually exceeded the degrees logged over the exact same time frame in 2018.
The Hong Kong Hotels Association (HKHA) documented average room occupancy rates of 93.4% and standard room rates of HK$ 1,715 ($295.50), both of which are at or above the amounts assessed for the similar holiday season period in 2019, says a CBRE report on the Hong Kong hotel market news on March 26.
HKTB anticipates a full improvement of global tourism by the end of 2025, sustained by a continuous influx of mainland Chinese travellers.
The accommodation industry generated HK$ 29.2 million in earnings in 2023, on the same level with 2019 figures. According to the Hong Kong Tourism Board (HKTB), average everyday levels of HK$ 1,444 in January 2024 were 9% higher than in January 2019, and overall RevPAR (income per offered bedroom) was 1% higher than in the very same period in 2018.
“With a considerable margin still standing in between historical and current overnight viewers numbers, CBRE is confident that there will certainly be further operational growth in Hong Kong SAR in 2024, propelled by a recovery in occupancy in well-managed investments,” claims the statement.
Operating performance for the luxury and upscale sectors in Hong Kong is anticipated to enhance in 2024, with these properties having seen reasonably slower rate appraisal compared to other rate 1 markets in the Asia Pacific location.
While hotels and resort operations have boosted substantially over the past twelve month, the financial investment market stays tough. “Presumptions are that borrowing prices will certainly start to decline in mid-2024 in conjunction with the Federal Reserve,” notes the report. Thus, it is expected to promote investment event. However, CBRE notes that an unfavorable take and skepticism over when these prices are going to start to move can restrain the chances of a solid uptick in venture number.
The recuperation in hotel operation has been pushed by the statement of international travellers, mainly mainland Chinese travelers, that account for over 79% of all inbound landings over the past one year, says CBRE.
According to CBRE, exclusive capitalists are going to continue to drive acquisitions in 2024, with a value-add and opportunistic approach as their key concentration. Co-living, college student lodging, and serviced home operators are expected to continue broadening their impact by capitalising on the total lack of such properties in the living sector and the interest provided by the Top Talent Pass Scheme (TTPS).