Hong Kong tourism awaits rebound

• As of YTD May 2024, Hong Kong welcomed approximately 18.0 million international tourists, representing a 77.8% increase y-o-y.
• The primary source market continues to be Mainland China, accounting for 76.6% of the market share. Other source markets include Taiwan, the Philippines, Macau and the United States.

New-to-market brands and multiple openings expected

• During the second quarter of 2024, one new hotel entered the Hong Kong market. The 150-key Shama Hub, located near the newly opened The Southside mall in Wong Chuk Hang, opened in June 2024.
• Several hotel openings are expected for the remainder of the year, totalling 4,137 rooms. Notable expected openings include Ascott North Point (114 rooms) and Metropark Hotel Hung Hom (536 rooms).

The Hong Kong hotel market slowly improves

• As of YTD June 2024, hotels in Hong Kong have recorded a notable increase in RevPAR with increased tourist numbers. Improvement in RevPAR was boosted by an increase in both occupancy and ADR.
• Two hotel deals completed in Q2 2024: the Bridal Tea House Hung Hom and the 119-key Hotel Ease Access Lai Chi Kok transacted for HKD 220 million to a local family office.

Outlook: Recovery expected by next year

• Hong Kong’s rebound is gaining momentum with a rise in tourist arrivals. The second quarter witnessed various events, such as the highly anticipated Rugby Sevens and a range of music festivals, contributing to the growing trend.
• Hong Kong’s recovery shows resilience. Lodging and tourism should continue improving in H2 2024, primarily fuelled by improved air transport and an increase in arrivals. Full recovery is expected by end-2025.