Hong Kong average room rates surpass pre-Covid period in 2019: CBRE
The hotel industry generated HK$ 29.2 million in income in 2023, on the same level with 2019 rates. According to the Hong Kong Tourism Board (HKTB), average everyday rates of HK$ 1,444 in January 2024 were 9% higher than in January 2019, and overall RevPAR (profits per readily available room) was 1% higher than in the very same duration in 2018.
According to CBRE, private investors are going to remain to drive procurements in 2024, with a value-add and opportunistic approach as their primary concentration. Co-living, university student lodging, and serviced residence owners are projected to go on expanding their footprint by capitalising on the total lack of such estates in the living field and the need provided by the Top Talent Pass Scheme (TTPS).
The recuperation in accommodation functionality has been driven by the statement of global visitors, mainly mainland Chinese tourists, who account for over 79% of all inbound landings over the past 12 months, states CBRE.
Lumina Grand Bukit Batok West Avenue 5
HKTB anticipates a full recuperation of worldwide tourism by the end of 2025, fuelled by a continued arrival of mainland Chinese visitors.
Running efficiency for the deluxe and upscale sectors in Hong Kong is anticipated to boost in 2024, with these properties having actually seen fairly slower rate appraisal compared to various rate 1 markets in the Asia Pacific location.
The Hong Kong Hotels Association (HKHA) disclosed average room tenancy estimates of 93.4% and standard room prices of HK$ 1,715 ($295.50), the two of that are in or over the levels measured for the similar holiday season time period in 2019, claims a CBRE report on the Hong Kong hotel market news on March 26.
Inbound arrivals enhanced to about 34 million, with mainland Chinese guests making up 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 comprised 1.25 million (85.6%). The numbers have actually exceeded the levels recorded over the exact same time frame in 2018.
“With a substantial margin still existing in between historical and existing overnight guest numbers, CBRE is confident that there will certainly be more operational growth in Hong Kong SAR in 2024, pushed by a rehabilitation in occupancy in well-managed properties,” states the report.
While hotel companies have actually improved noticeably over the past 12 months, the investment market remains difficult. “Presumptions are that loaning prices will certainly begin to decrease in mid-2024 in tandem with the Federal Reserve,” indicates the statement. Therefore, it is anticipated to market financial investment activity. Nonetheless, CBRE notes that a negative hold and unpredictability over when these prices are going to begin to move might restrict the probabilities of a strong uptick in venture number.
