Hong Kong hotel performance rebounds strongly in 2023

After a prolonged period of challenging operational conditions, hotel performance in Hong Kong SAR rebounded strongly in 2023 following the removal of pandemic restrictions earlier in the year, which led to an increase in inbound travelers, according to CBRE in its Asia Pacific Hotels & Hospitality’s Market Update series, which explores key trends in the region across indicators such as tourism arrivals, hotels performance, supply and investment activity, as well as notable market developments that are relevant to the hotel sector.

Hotel performance was outstanding during the eight-day Lunar New Year holiday in February 2024, with average room occupancy rates and average room rates at or above the same holiday period in 2019. The upturn in hotel performance has been driven by the return of global travelers, particularly mainland Chinese tourists, who account for more than 79 percent of all inbound arrivals over the past 12 months.

With a considerable margin still