Hong Kong average room rates surpass pre-Covid period in 2019: CBRE
The lodging sector produced HK$ 29.2 million in income in 2023, on par with 2019 rates. According to the Hong Kong Tourism Board (HKTB), normal everyday levels of HK$ 1,444 in January 2024 were 9% more than in January 2019, and overall RevPAR (income per readily available room) was 1% more than in the very same period in 2018.
“With a considerable margin still standing in between historical and current overnight viewers numbers, CBRE is positive that there will be more operational development in Hong Kong SAR in 2024, pushed by a rehabilitation in occupancy in well-managed assets,” says the statement.
According to CBRE, private financiers are going to remain to drive procurements in 2024, with a value-add and opportunistic approach as their main emphasis. Co-living, college student accommodation, and serviced residence owners are projected to go on broadening their presence by capitalising on the total scarcity of such buildings in the living market and the need provided by the Top Talent Pass Scheme (TTPS).
The upturn in accommodation functionality has been steered by the statement of international travellers, primarily mainland Chinese tourists, that represent over 79% of all incoming arrivals over the past twelve month, states CBRE.
While hotel and resort business have actually boosted significantly over the past twelve month, the investment market stays tough. “Assumptions are that loaning expenses will begin to decrease in mid-2024 in tandem with the Federal Reserve,” notes the report. Thus, it is anticipated to advertise financial investment event. Nevertheless, CBRE notes that an unfavorable take and unpredictability over when these rates are going to start to shift can limit the probabilities of a strong uptick in venture volume.
Running efficiency for the deluxe and high end segments in Hong Kong is assumed to enhance in 2024, with these properties having observed fairly slower cost appreciation compared to other tier 1 markets in the Asia Pacific region.
The Botany at Dairy Farm condominium
The Hong Kong Hotels Association (HKHA) reported standard room tenancy rates of 93.4% and average room prices of HK$ 1,715 ($295.50), both of that are with or over the degrees assessed for the same holiday period in 2019, states a CBRE report on the Hong Kong hotel market update on March 26.
HKTB anticipates a full resurrection of global travel by the end of 2025, sustained by a continued arrival of mainland Chinese travellers.
Incoming arrivals boosted to approximately 34 million, with mainland Chinese visitors making up over 79% of all arrivals in 2023. Over 1.46 million tourist landings were filed during the Lunar New Year holidays in February 2024, of which Chinese made up 1.25 million (85.6%). The numbers have exceeded the levels documented over the exact same period of time in 2018.