Hong Kong average room rates surpass pre-Covid period in 2019: CBRE
The Hong Kong Hotels Association (HKHA) documented common room occupancy levels of 93.4% and regular room rates of HK$ 1,715 ($295.50), each of which are with or above the amounts measured for the similar holiday time frame in 2019, states a CBRE record on the Hong Kong hotel market news on March 26.
“With a considerable margin still standing between historical and existing over night guest numbers, CBRE is positive that there will certainly be more operational growth in Hong Kong SAR in 2024, pushed by a recuperation in occupancy in well-managed properties,” claims the report.
While hotel and resort operations have actually improved substantially over the past year, the investment market stays challenging. “Expectations are that borrowing costs will start to decrease in mid-2024 in tandem with the Federal Reserve,” mentions the report. Thus, it is assumed to market financial investment event. Nevertheless, CBRE notes that a negative hold and unpredictability over when these rates are going to start to move might limit the possibilities of a strong uptick in venture quantity.
The recuperation in accommodation operation has actually been steered by the return of global travellers, mostly mainland Chinese visitors, who represent over 79% of all incoming landings over the past twelve month, claims CBRE.
The lodging market created HK$ 29.2 million in profits in 2023, on par with 2019 rates. According to the Hong Kong Tourism Board (HKTB), average daily levels of HK$ 1,444 in January 2024 were 9% higher than in January 2019, and overall RevPAR (income per readily available bedroom) was 1% more than in the exact same period in 2018.
Operating performance for the luxury and upscale sections in Hong Kong is assumed to enhance in 2024, with these investments having observed relatively slower rate appreciation contrasted to different rate 1 industry in the Asia Pacific area.
Inbound arrivals raised to approximately 34 million, with mainland Chinese travelers making up over 79% of all arrivals in 2023. Over 1.46 million visitor arrivings were recorded throughout the Lunar New Year vacations in February 2024, of which Chinese composed 1.25 million (85.6%). The figures have actually exceeded the degrees documented over the same time frame in 2018.
HKTB anticipates a full recuperation of worldwide tourist by the end of 2025, fuelled by a continued influx of mainland Chinese visitors.
According to CBRE, exclusive investors are going to continue to drive acquisitions in 2024, with a value-add and opportunistic method as their key emphasis. Co-living, college student room, and serviced house operators are projected to go on increasing their impact by capitalising on the overall lack of such properties in the living industry and the demand offered by the Top Talent Pass Scheme (TTPS).
