Hong Kong average room rates surpass pre-Covid period in 2019: CBRE
According to CBRE, exclusive capitalists will remain to drive purchases in 2024, with a value-add and opportunistic strategy as their key emphasis. Co-living, college student accommodation, and serviced home operators are projected to carry on expanding their presence by capitalising on the total lack of such estates in the living industry and the need presented by the Top Talent Pass Scheme (TTPS).
The Hong Kong Hotels Association (HKHA) documented average room occupancy estimates of 93.4% and average room rates of HK$ 1,715 ($295.50), both of which are with or above the degrees measured for the similar holiday time period in 2019, states a CBRE report on the Hong Kong hotel market news on March 26.
The accommodation sector generated HK$ 29.2 million in profits in 2023, on the same level with 2019 rates. According to the Hong Kong Tourism Board (HKTB), typical 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.
Operating efficiency for the high-end and upscale sections in Hong Kong is assumed to boost in 2024, with these assets having actually observed relatively slower cost appreciation contrasted to different tier 1 industry in the Asia Pacific location.
Incoming arrivals increased to around 34 million, with mainland Chinese travelers representing over 79% of all arrivals in 2023. Over 1.46 million traveler arrivings were reported throughout the Lunar New Year vacations in February 2024, of which Chinese comprised 1.25 million (85.6%). The figures have actually surpassed the degrees recorded over the exact same period of time in 2018.
“With a significant margin still existing between historical and existing over night guest numbers, CBRE is confident that there will be further operational development in Hong Kong SAR in 2024, driven by a recovery in occupancy in well-managed properties,” says the report.
While hotels and resort operations have actually improved substantially over the past twelve month, the investment market remains difficult. “Expectations are that loaning expenses will start to decline in mid-2024 in conjunction with the Federal Reserve,” mentions the statement. Thus, it is expected to promote financial investment event. Nevertheless, CBRE notes that a negative carry and unpredictability over when these prices will start to shift can restrict the probabilities of a strong uptick in venture volume.
HKTB anticipates a full recuperation of global tourism by the end of 2025, fuelled by a continuous influx of mainland Chinese visitors.
The recovery in accommodation operation has been pushed by the statement of global tourists, mainly mainland Chinese vacationers, that represent over 79% of all inbound arrivals over the past twelve month, says CBRE.
