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

The recovery in hotel functionality has actually been pushed by the return of global tourists, generally mainland Chinese visitors, that represent over 79% of all inbound landings over the past 12 months, says CBRE.

The Hong Kong Hotels Association (HKHA) reported common room occupancy figures of 93.4% and standard room rates of HK$ 1,715 ($295.50), each of which are in or over the amounts assessed for the same holiday period in 2019, states a CBRE record on the Hong Kong hotel market news on March 26.

While hotels and resort business have actually enhanced markedly over the past 12 months, the financial investment market remains tough. “Assumptions are that borrowing expenses will begin to decrease in mid-2024 in conjunction with the Federal Reserve,” notes the report. Therefore, it is expected to advertise investment event. Nonetheless, CBRE notes that an adverse take and uncertainty over when these prices will start to shift might restrain the possibilities of a strong uptick in investment volume.

According to CBRE, exclusive investors are going to continue to generate purchases in 2024, with a value-add and opportunistic strategy as their primary concentration. Co-living, student lodging, and serviced house owners are expected to go on increasing their presence by capitalising on the general lack of such properties in the living sector and the interest offered by the Top Talent Pass Scheme (TTPS).

“With a substantial margin still existing in between historical and existing over night guest numbers, CBRE is confident that there will be further operational development in Hong Kong SAR in 2024, propelled by a recuperation in tenancy in well-managed investments,” claims the information.

The lodging sector created HK$ 29.2 million in revenue in 2023, on par with 2019 rates. According to the Hong Kong Tourism Board (HKTB), average day-to-day levels of HK$ 1,444 in January 2024 were 9% greater than in January 2019, and overall RevPAR (profits per offered bedroom) was 1% more than in the same period in 2018.

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Inbound arrivals boosted to about 34 million, with mainland Chinese guests accounting for over 79% of all arrivals in 2023. Over 1.46 million traveler arrivings were filed during the Lunar New Year holidays in February 2024, of which Chinese comprised 1.25 million (85.6%). The numbers have actually gone beyond the degrees logged 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 seen fairly slower rate appraisal compared to other tier 1 industry in the Asia Pacific region.

HKTB anticipates a full improvement of global tourism by the end of 2025, fuelled by an ongoing increase of mainland Chinese tourists.

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