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), each of that are in or over the levels assessed for the very same vacation time frame in 2019, says a CBRE record on the Hong Kong hotel market news on March 26.

According to CBRE, exclusive capitalists are going to remain to drive procurements in 2024, with a value-add and opportunistic strategy as their primary concentration. Co-living, university student lodging, and serviced residence owners are projected to carry on increasing their impact by capitalising on the general scarcity of such properties in the living market and the demand offered by the Top Talent Pass Scheme (TTPS).

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Operating efficiency for the luxury and upscale sectors in Hong Kong is assumed to boost in 2024, with these properties having observed relatively slower cost appraisal contrasted to other tier 1 markets in the Asia Pacific location.

Incoming arrivals boosted to around 34 million, with mainland Chinese guests representing over 79% of all arrivals in 2023. Over 1.46 million visitor landings were filed throughout the Lunar New Year holidays in February 2024, of which Chinese composed 1.25 million (85.6%). The figures have actually surpassed the levels documented over the same period in 2018.

The recovery in hotels and resort functionality has been pushed by the return of international travellers, mainly mainland Chinese vacationers, that represent over 79% of all incoming landings over the past one year, states CBRE.

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

“With a substantial margin still existing between historical and existing over night viewers numbers, CBRE is positive that there will certainly be more operational development in Hong Kong SAR in 2024, driven by a recovery in occupancy in well-managed properties,” states the report.

While hotel business have enhanced noticeably over the past one year, the financial investment market remains tough. “Expectations are that borrowing prices will certainly begin to decrease in mid-2024 in conjunction with the Federal Reserve,” notes the statement. For this reason, it is anticipated to promote financial investment event. However, CBRE notes that an adverse hold and skepticism over when these prices are going to start to change could restrict the probabilities of a solid uptick in investment number.

The lodging sector created HK$ 29.2 million in income in 2023, on par with 2019 numbers. According to the Hong Kong Tourism Board (HKTB), normal everyday rates of HK$ 1,444 in January 2024 were 9% greater than in January 2019, and overall RevPAR (profits per available room) was 1% greater than in the same duration in 2018.

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