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

The accommodation sector produced HK$ 29.2 million in earnings in 2023, on the same level with 2019 numbers. According to the Hong Kong Tourism Board (HKTB), normal everyday rates of HK$ 1,444 in January 2024 were 9% more than in January 2019, and overall RevPAR (profits per offered bedroom) was 1% higher than in the very same period in 2018.

The Hong Kong Hotels Association (HKHA) disclosed standard room occupancy estimates of 93.4% and regular room rates of HK$ 1,715 ($295.50), the two of that are in or over the degrees assessed for the same vacation time frame in 2019, states a CBRE record on the Hong Kong hotel market update on March 26.

HKTB expects a full recovery of worldwide tourism by the end of 2025, sustained by an ongoing increase of mainland Chinese tourists.

Operating performance for the luxury and upscale sectors in Hong Kong is anticipated to boost in 2024, with these properties having actually seen reasonably slower cost appraisal compared to different tier 1 markets in the Asia Pacific location.

According to CBRE, exclusive financiers are going to continue to generate acquisitions in 2024, with a value-add and opportunistic approach as their main focus. Co-living, college student accommodation, and serviced house owners are projected to carry on increasing their presence by capitalising on the total shortage of such buildings in the living market and the need provided by the Top Talent Pass Scheme (TTPS).

Residence at W condominium

While hotel and resort companies have actually boosted noticeably over the past 12 months, the investment market continues to be difficult. “Presumptions are that loaning prices will certainly start to decrease in mid-2024 in conjunction with the Federal Reserve,” mentions the statement. Thus, it is expected to advertise investment activity. Nonetheless, CBRE notes that an adverse hold and skepticism over when these prices will start to change might restrict the possibilities of a solid uptick in venture quantity.

Incoming arrivals enhanced to about 34 million, with mainland Chinese guests making up over 79% of all arrivals in 2023. Over 1.46 million tourist landings were recorded throughout the Lunar New Year holidays in February 2024, of which Chinese composed 1.25 million (85.6%). The numbers have exceeded the degrees documented over the same period in 2018.

The recuperation in hotels and resort performance has been steered by the return of worldwide travellers, mostly mainland Chinese tourists, that make up over 79% of all incoming arrivings over the past twelve month, claims CBRE.

“With a considerable margin still standing in between historical and current overnight guest numbers, CBRE is optimistic that there will be additional operational growth in Hong Kong SAR in 2024, pushed by a rehabilitation in tenancy in well-managed assets,” claims the statement.


error: Content is protected !!