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

According to CBRE, exclusive financiers will continue to drive acquisitions in 2024, with a value-add and opportunistic method as their primary concentration. Co-living, student accommodation, and serviced residence owners are expected to continue increasing their presence by capitalising on the total scarcity of such real properties in the living field and the interest provided by the Top Talent Pass Scheme (TTPS).

The upturn in hotel performance has actually been steered by the statement of global visitors, mostly mainland Chinese visitors, who make up over 79% of all inbound landings over the past one year, claims CBRE.

“With a considerable margin still standing between historical and latest overnight visitor numbers, CBRE is positive that there will certainly be further operational growth in Hong Kong SAR in 2024, driven by a recuperation in tenancy in well-managed investments,” states the report.

The lodging market generated HK$ 29.2 million in revenue in 2023, on par with 2019 numbers. 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 offered bedroom) was 1% greater than in the very same duration in 2018.

Operating efficiency for the luxury and upscale sections in Hong Kong is assumed to improve in 2024, with these properties having seen fairly slower rate appreciation matched up to other rate 1 markets in the Asia Pacific location.

Tembusu Grand Singapore

The Hong Kong Hotels Association (HKHA) reported average room occupancy rates of 93.4% and average room prices of HK$ 1,715 ($295.50), both of that are in or over the degrees assessed for the very same holiday time frame in 2019, says a CBRE record on the Hong Kong hotel market update on March 26.

Inbound arrivals increased to about 34 million, with mainland Chinese travelers representing over 79% of all arrivals in 2023. Over 1.46 million vacationer landings were recorded during the Lunar New Year holidays in February 2024, of which Chinese made up 1.25 million (85.6%). The numbers have actually exceeded the levels logged over the exact same period of time in 2018.

HKTB anticipates a full recuperation of worldwide tourism by the end of 2025, sustained by an ongoing increase of mainland Chinese travellers.

While hotel and resort operations have boosted markedly over the past year, the investment market remains tough. “Expectations are that borrowing costs will certainly start to decline in mid-2024 in tandem with the Federal Reserve,” indicates the statement. Therefore, it is anticipated to market investment activity. However, CBRE notes that an unfavorable take and unpredictability over when these prices are going to begin to shift could restrain the probabilities of a strong uptick in investment quantity.

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