Hong Kong hotels surge

Hong Kong hotels surge

Hong Kong’s hotel sector continues to surge, with revenue per available room (revPAR) growing 8.7% in the first eight months of the year.

Hong Kong
Hong Kong

According to the latest city report from STR Global, Hong Kong’s hotels have enjoyed buoyant year with occupancy levels remaining well above the 80% and average daily rates (ADR) climbing 5.7% to CNY1,469 (US$232). This remains well above the levels achieved across the border in mainland China, despite ADR growth in both Guangzhou (+4.2% to CNY769) and Shenzhen (+5.1% to CNY808).

“Hong Kong, as a financial centre and hub for conferences and events, is a strategic gateway for conducting business with China and the rest of the world,” said Elizabeth Randall-Winkle, Managing Director of STR Global. “Hoteliers in Hong Kong have benefited from continuous annual demand growth since 2010, helping to reach the highest performance levels since 2000. Whilst economic activities are expected to remain challenging during the rest of 2012 and into 2013 in China and globally, we expect to see… occupancy to level off around the 84% mark until the end of 2013, and ADR growth to slow slightly to 3.6%.”

Focusing on hotel performance by market segment, Hong Kong Island’s luxury and upper-upscale hotels saw the highest ADR, climbing 6.4% to CNY1,087. Hong Kong Island’s upscale and upper-midscale hotels reported the highest occupancy, averaging 91.3%.

STR Global said it expects that Hong Kong, Guangzhou and Shenzhen will all see pressure on occupancy levels and stable ADR growth in the short term. It added however, that Hong Kong — as a gateway destination with limited options for new hotel developments — will continue to report high performance levels.

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