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

Incoming arrivals boosted to approximately 34 million, with mainland Chinese travelers representing over 79% of all arrivals in 2023. Over 1.46 million vacationer arrivals were documented during the Lunar New Year holidays in February 2024, of which Chinese comprised 1.25 million (85.6%). The figures have actually surpassed the levels documented over the same period of time in 2018.

Running efficiency for the luxury and high end sections in Hong Kong is expected to enhance in 2024, with these assets having actually seen reasonably slower price appreciation contrasted to other rate 1 markets in the Asia Pacific region.

According to CBRE, exclusive investors are going to remain to steer acquisitions in 2024, with a value-add and opportunistic approach as their main concentration. Co-living, student accommodation, and serviced house owners are projected to continue broadening their presence by capitalising on the general shortage of such real properties in the living industry and the demand provided by the Top Talent Pass Scheme (TTPS).

The recovery in accommodation performance has been steered by the statement of international travellers, mainly mainland Chinese visitors, that account for over 79% of all incoming landings over the past one year, states CBRE.

HKTB anticipates a complete recuperation of international tourism by the end of 2025, fuelled by an ongoing increase of mainland Chinese travellers.

The hotel industry produced HK$ 29.2 million in income in 2023, on the same level with 2019 rates. According to the Hong Kong Tourism Board (HKTB), typical everyday levels of HK$ 1,444 in January 2024 were 9% greater than in January 2019, and overall RevPAR (income per offered bedroom) was 1% greater than in the very same period in 2018.

Terra Hill condo

While hotel companies have actually enhanced significantly over the past year, the investment market continues to be difficult. “Expectations are that borrowing costs will certainly start to decline in mid-2024 in tandem with the Federal Reserve,” notes the statement. Hence, it is assumed to market financial investment event. However, CBRE notes that a negative hold and unpredictability over when these prices will start to change could restrain the probabilities of a solid uptick in investment volume.

“With a significant margin still standing in between historical and existing overnight viewers numbers, CBRE is confident that there will be further operational development in Hong Kong SAR in 2024, propelled by a rehabilitation in occupancy in well-managed assets,” says the information.

The Hong Kong Hotels Association (HKHA) reported common room tenancy levels of 93.4% and regular room prices of HK$ 1,715 ($295.50), the two of which are in or above the amounts measured for the very same holiday season period in 2019, claims a CBRE record on the Hong Kong hotel market update on March 26.

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