Hong Kong average room rates surpass pre-Covid period in 2019: CBRE
The accommodation market created HK$ 29.2 million in profits in 2023, on par with 2019 numbers. According to the Hong Kong Tourism Board (HKTB), normal day-to-day rates of HK$ 1,444 in January 2024 were 9% higher than in January 2019, and overall RevPAR (profits per available bedroom) was 1% higher than in the exact same duration in 2018.
While hotel operations have enhanced significantly over the past year, the investment market remains difficult. “Assumptions are that credit costs will certainly start to decline in mid-2024 in conjunction with the Federal Reserve,” mentions the report. For this reason, it is anticipated to advertise financial investment event. Nevertheless, CBRE notes that an unfavorable take and uncertainty over when these rates will start to shift could limit the chances of a strong uptick in venture number.
According to CBRE, exclusive capitalists are going to continue to drive purchases in 2024, with a value-add and opportunistic approach as their primary concentration. Co-living, university student room, and serviced home owners are expected to go on broadening their presence by capitalising on the general lack of such real properties in the living market and the interest provided by the Top Talent Pass Scheme (TTPS).
The Hong Kong Hotels Association (HKHA) reported average room occupancy estimates of 93.4% and regular room rates of HK$ 1,715 ($295.50), each of that are at or above the degrees measured for the very same holiday season period in 2019, claims a CBRE record on the Hong Kong hotel market update on March 26.
Blossoms By The Park floor plan
HKTB anticipates a complete resurrection of international travel by the end of 2025, sustained by a continuous increase of mainland Chinese tourists.
The recuperation in accommodation performance has been driven by the statement of worldwide tourists, mainly mainland Chinese visitors, who make up over 79% of all incoming landings over the past one year, claims CBRE.
Incoming arrivals enhanced to approximately 34 million, with mainland Chinese travelers accounting for 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 made up 1.25 million (85.6%). The figures have surpassed the levels documented over the same period of time in 2018.
Managing performance for the deluxe and upscale sections in Hong Kong is assumed to boost in 2024, with these properties having seen reasonably slower rate appreciation compared to different rate 1 industry in the Asia Pacific location.
“With a substantial margin still existing between historical and latest over night visitor numbers, CBRE is optimistic that there will certainly be more functional development in Hong Kong SAR in 2024, driven by a recovery in tenancy in well-managed investments,” claims the information.
