Hong Kong average room rates surpass pre-Covid period in 2019: CBRE
Incoming arrivals raised to approximately 34 million, with mainland Chinese travelers making up over 79% of all arrivals in 2023. Over 1.46 million tourist arrivings were recorded throughout the Lunar New Year holidays in February 2024, of which Chinese comprised 1.25 million (85.6%). The figures have actually gone beyond the levels documented over the exact same period in 2018.
While hotels and resort business have improved considerably over the past twelve month, the financial investment market remains challenging. “Expectations are that credit prices will start to decline in mid-2024 in tandem with the Federal Reserve,” mentions the report. Thus, it is assumed to promote investment activity. However, CBRE notes that an unfavorable hold and unpredictability over when these rates will begin to change can restrain the probabilities of a strong uptick in venture volume.
“With a substantial margin still existing in between historical and current over night viewers numbers, CBRE is optimistic that there will certainly be further functional growth in Hong Kong SAR in 2024, pushed by a recovery in occupancy in well-managed properties,” says the information.
The lodging industry generated HK$ 29.2 million in income in 2023, on the same level with 2019 numbers. According to the Hong Kong Tourism Board (HKTB), normal everyday levels of HK$ 1,444 in January 2024 were 9% higher than in January 2019, and overall RevPAR (earnings per offered room) was 1% more than in the exact same duration in 2018.
The Hong Kong Hotels Association (HKHA) documented common room occupancy rates of 93.4% and average room prices of HK$ 1,715 ($295.50), both of which are in or over the amounts measured for the same vacation period in 2019, says a CBRE report on the Hong Kong hotel market update on March 26.
HKTB expects a complete recovery of international tourism by the end of 2025, fuelled by an ongoing increase of mainland Chinese tourists.
Managing efficiency for the deluxe and high end segments in Hong Kong is anticipated to boost in 2024, with these investments having actually observed relatively slower cost appreciation contrasted to different tier 1 markets in the Asia Pacific area.
The recuperation in hotels and resort performance has actually been driven by the statement of global tourists, mainly mainland Chinese travelers, who represent over 79% of all inbound landings over the past twelve month, says CBRE.
According to CBRE, private capitalists will 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 expected to continue broadening their presence by capitalising on the general scarcity of such buildings in the living field and the interest offered by the Top Talent Pass Scheme (TTPS).
