Mainland Chinese visitors drive tourism recovery with record market share

• As of February 2026 YTD, Hong Kong’s visitor arrivals rose 18.4% year-on-year to more than 9.9 million.
• Visitors from Mainland China accounted for a record-high 79.3% of total arrivals.

Muted hotel supply pipeline in 2026 after a strong 2025

• No new hotels opened in Hong Kong in the first quarter of the year.
• The upcoming reopening of The Landmark Mandarin Oriental Hong Kong after a two-year renovation is a notable addition to the market, given the limited new hotel supply pipeline for the year.

Strong performance metrics across all hotel segments

• As of March 2026 YTD, Hong Kong’s hotel market posted consistent positive RevPAR growth across all segments, supported by strong occupancy and rising ADRs amid a limited supply pipeline.
• Hong Kong recorded a total of HKD 1.1 billion in hotel transactions, including two conversions into student accommodation.

Outlook: Hotel conversions and tourism initiatives are driving a positive market outlook despite geopolitical shifts

• While geopolitical tensions could introduce volatility, they may also drive an increase in international students coming to Hong Kong, fuelling a hotel-to-student housing conversion trend. Backed by government support, this trend is unlocking tightly held assets and sustaining transaction activity.
• Moreover, the Hong Kong government has allocated HKD 1.66 billion to the Tourism Board for 2026-27 to scale up flagship events and promotions. The strategy includes promoting the integrated development of culture, sports and tourism, as well as enhancing Hong Kong’s status as a hub for mega-events.