Hong Kong average room rates surpass pre-Covid period in 2019: CBRE

The hotel market created HK$ 29.2 million in income in 2023, on par with 2019 figures. According to the Hong Kong Tourism Board (HKTB), typical day-to-day levels of HK$ 1,444 in January 2024 were 9% higher than in January 2019, and overall RevPAR (revenue per offered bedroom) was 1% more than in the very same duration in 2018.

“With a considerable margin still standing between historical and existing overnight guest numbers, CBRE is optimistic that there will certainly be further operational growth in Hong Kong SAR in 2024, propelled by a recuperation in tenancy in well-managed investments,” says the statement.

HKTB expects a complete resurrection of international tourism by the end of 2025, fuelled by a continuous influx of mainland Chinese visitors.

Incoming arrivals increased to around 34 million, with mainland Chinese travelers representing over 79% of all arrivals in 2023. Over 1.46 million traveler landings were filed throughout the Lunar New Year vacations in February 2024, of which Chinese comprised 1.25 million (85.6%). The numbers have surpassed the degrees recorded over the same period in 2018.

Managing performance for the deluxe and upscale sectors in Hong Kong is expected to boost in 2024, with these investments having observed reasonably slower price appreciation compared to other rate 1 industry in the Asia Pacific area.

The recovery in hotels and resort operation has been steered by the statement of worldwide visitors, mainly mainland Chinese vacationers, who represent over 79% of all incoming arrivings over the past twelve month, says CBRE.

While hotel business have improved substantially over the past year, the investment market stays tough. “Expectations are that credit prices will begin to decline in mid-2024 in conjunction with the Federal Reserve,” notes the statement. Therefore, it is anticipated to promote investment activity. Nonetheless, CBRE notes that a negative take and skepticism over when these prices are going to begin to move might restrict the chances of a solid uptick in investment number.

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According to CBRE, exclusive capitalists are going to remain to steer purchases in 2024, with a value-add and opportunistic approach as their key focus. Co-living, university student lodging, and serviced house owners are expected to go on increasing their impact by capitalising on the general shortage of such estates in the living field and the need presented by the Top Talent Pass Scheme (TTPS).

The Hong Kong Hotels Association (HKHA) documented average room tenancy estimates of 93.4% and regular room prices of HK$ 1,715 ($295.50), both of that are with or over the degrees assessed for the similar holiday time period in 2019, states a CBRE report on the Hong Kong hotel market update on March 26.

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