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

Incoming arrivals increased to around 34 million, with mainland Chinese travelers representing over 79% of all arrivals in 2023. Over 1.46 million tourist arrivals were reported during the Lunar New Year vacations in February 2024, of which Chinese composed 1.25 million (85.6%). The numbers have actually gone beyond the degrees documented over the exact same time frame in 2018.

Managing efficiency for the luxury and high end sections in Hong Kong is expected to enhance in 2024, with these assets having seen fairly slower cost appreciation contrasted to various tier 1 markets in the Asia Pacific area.

The Hong Kong Hotels Association (HKHA) reported standard room occupancy figures of 93.4% and average room prices of HK$ 1,715 ($295.50), the two of that are with or over the levels measured for the very same vacation period in 2019, says a CBRE record on the Hong Kong hotel market update on March 26.

“With a considerable margin still existing in between historical and current over night guest numbers, CBRE is confident that there will be additional functional growth in Hong Kong SAR in 2024, pushed by a recovery in occupancy in well-managed investments,” says the information.

The accommodation industry created HK$ 29.2 million in earnings in 2023, on par with 2019 rates. According to the Hong Kong Tourism Board (HKTB), typical day-to-day levels of HK$ 1,444 in January 2024 were 9% higher than in January 2019, and overall RevPAR (earnings per available room) was 1% more than in the same period in 2018.

Hillock Green Singapore

While hotel business have actually improved substantially over the past twelve month, the investment market stays challenging. “Expectations are that credit prices will start to decline in mid-2024 in conjunction with the Federal Reserve,” indicates the statement. Hence, it is anticipated to advertise financial investment activity. Nevertheless, CBRE notes that an adverse hold and skepticism over when these rates will begin to change could restrict the probabilities of a strong uptick in investment number.

HKTB anticipates a full recovery of worldwide tourist by the end of 2025, fuelled by a continuous influx of mainland Chinese travellers.

The recovery in accommodation operation has actually been pushed by the statement of international visitors, mostly mainland Chinese visitors, that account for over 79% of all inbound landings over the past twelve month, claims CBRE.

According to CBRE, private capitalists are going to continue to steer purchases in 2024, with a value-add and opportunistic strategy as their key concentration. Co-living, university student room, and serviced home owners are expected to carry on expanding their footprint by capitalising on the overall lack of such estates in the living sector and the demand presented by the Top Talent Pass Scheme (TTPS).


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