Remarkable visitor surge fuels the city’s revival

• In the last quarter of 2023, 10.7 million international tourists visited Hong Kong, representing a 17% increase since the same period in 2019.
• Since January 2023, total international visitation reached nearly 34 million, 79% of which came from Mainland China. Other source markets include Taiwan, Philippines, USA and Thailand.

Elevating Hong Kong’s hospitality landscape

• No new hotel rooms were introduced to the market in the final quarter of 2023.
• Several hotel openings totalling 2,592 rooms are expected for 2024, with different new brands entering the Hong Kong market, such as Citadines, Andaz, Motto by Hilton, and Kimpton. The majority of these new hotels will be situated in Hong Kong Island and the Tsim Sha Tsui area.

Resilient Midmarket hotels demonstrate improving performance

• As of YTD December 2023, revenue per available room (RevPAR) of luxury hotels reached HKD2,309, representing a 132.5% growth y-o-y. Midscale & economy hotels, which are more reliant on tour groups, have also shown improved performance albeit at a slower pace.
• Since January 2023, only three hotels have transacted in Hong Kong for a total of USD 748 million. Notable transactions include the sale of The Kimberley Hotel for USD 433 million and the Pentahotel Kowloon for USD 255 million, with one more transaction expected to close in January 2024.

Outlook: Steady progress in Hong Kong’s hospitality market

• Hong Kong’s recovery is well underway, as visitor arrivals have exceeded the HKTB forecast of 25.8 million for the entire year of 2023 by an impressive 32%. Moreover, performance across all markets segments continues to show improvement fuelled by both leisure, business and MICE travellers.
• While Hong Kong’s path to recovery has been gradual, the city has displayed strong resilience, and we anticipate continued improvements in the lodging and tourism sector’s performance throughout 2024.