Hong Kong average room rates surpass pre-Covid period in 2019: CBRE
The accommodation market generated HK$ 29.2 million in earnings in 2023, on par with 2019 figures. According to the Hong Kong Tourism Board (HKTB), typical daily 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 exact same period in 2018.
Operating performance for the deluxe and upscale sections in Hong Kong is anticipated to enhance in 2024, with these assets having observed reasonably slower price appreciation compared to various rate 1 industry in the Asia Pacific region.
Inbound arrivals increased to about 34 million, with mainland Chinese visitors accounting for over 79% of all arrivals in 2023. Over 1.46 million visitor arrivals were documented during the Lunar New Year holidays in February 2024, of which Chinese made up 1.25 million (85.6%). The figures have actually gone beyond the degrees recorded over the very same time frame in 2018.
According to CBRE, exclusive investors are going to continue to steer purchases in 2024, with a value-add and opportunistic approach as their main focus. Co-living, college student room, and serviced home owners are expected to continue expanding their footprint by capitalising on the overall shortage of such properties in the living market and the need presented by the Top Talent Pass Scheme (TTPS).
HKTB anticipates a complete recuperation of global tourism by the end of 2025, sustained by an ongoing arrival of mainland Chinese travellers.
The Hong Kong Hotels Association (HKHA) disclosed average room occupancy estimates of 93.4% and standard room prices of HK$ 1,715 ($295.50), the two of that are in or above the levels assessed for the very same holiday time frame in 2019, says a CBRE record on the Hong Kong hotel market news on March 26.
The recuperation in hotels and resort functionality has been steered by the statement of global tourists, generally mainland Chinese travelers, who represent over 79% of all inbound arrivings over the past 12 months, states CBRE.
“With a considerable margin still standing in between historical and latest over night guest numbers, CBRE is optimistic that there will certainly be additional functional development in Hong Kong SAR in 2024, pushed by a recuperation in occupancy in well-managed properties,” claims the report.
While hotels and resort operations have enhanced significantly over the past year, the investment market remains difficult. “Presumptions are that borrowing expenses will certainly start to decline in mid-2024 in conjunction with the Federal Reserve,” notes the report. Therefore, it is assumed to advertise financial investment event. Nonetheless, CBRE notes that an adverse take and skepticism over when these rates are going to start to change might limit the chances of a solid uptick in venture volume.
