Hong Kong average room rates surpass pre-Covid period in 2019: CBRE
The accommodation industry produced HK$ 29.2 million in profits in 2023, on par with 2019 numbers. According to the Hong Kong Tourism Board (HKTB), typical 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 exact same period in 2018.
The Hong Kong Hotels Association (HKHA) disclosed average room tenancy levels of 93.4% and regular room prices of HK$ 1,715 ($295.50), both of that are with or over the levels measured for the same holiday season time frame in 2019, claims a CBRE report on the Hong Kong hotel market news on March 26.
HKTB anticipates a full recuperation of international tourist by the end of 2025, sustained by a continued influx of mainland Chinese tourists.
According to CBRE, private investors will continue to drive purchases in 2024, with a value-add and opportunistic method as their key emphasis. Co-living, college student lodging, and serviced home operators are expected to go on broadening their footprint by capitalising on the general lack of such estates in the living sector and the demand offered by the Top Talent Pass Scheme (TTPS).
“With a substantial margin still standing in between historical and existing overnight viewers numbers, CBRE is positive that there will certainly be additional functional development in Hong Kong SAR in 2024, driven by a rehabilitation in occupancy in well-managed assets,” states the report.
While hotel and resort business have actually boosted significantly over the past one year, the investment market remains challenging. “Assumptions are that credit expenses will begin to decline in mid-2024 in conjunction with the Federal Reserve,” indicates the statement. Therefore, it is expected to advertise investment activity. Nonetheless, CBRE notes that an unfavorable hold and skepticism over when these rates will start to change could restrict the probabilities of a solid uptick in investment number.
Inbound arrivals increased to about 34 million, with mainland Chinese travelers representing over 79% of all arrivals in 2023. Over 1.46 million visitor arrivings were documented throughout the Lunar New Year vacations in February 2024, of which Chinese comprised 1.25 million (85.6%). The numbers have exceeded the degrees documented over the very same period of time in 2018.
Managing performance for the luxury and upscale segments in Hong Kong is anticipated to boost in 2024, with these properties having actually seen fairly slower price appreciation matched up to different tier 1 industry in the Asia Pacific area.
The recovery in accommodation performance has actually been driven by the statement of international tourists, mainly mainland Chinese tourists, who account for over 79% of all inbound landings over the past twelve month, claims CBRE.
