Hotel performance improves in first 8 months: Knight Frank
This is due to the rebound of tourist arrivals by 234% YoY.
Hotels in Hong Kong have improved their performance due to the influx of tourists in the market after the fifth wave of the pandemic came under control in May 2022.
In a report, Knight Frank said overnight visitor arrivals in Hong Kong reached over 175,000 for the first eight months of 2022, increasing by 234% year-on-year (YoY). In August alone, overnight visitors surged 529% year-to-date.
This is compared to 89,190 international overnight visitors in 2021, down by 93.4% YoY, and the Chinese mainland arrivals which declined by 92.7% YoY to over 64,000.
“Hotel performance also improved because of local staycation demand and hotel quarantine demand, which raised (average daily rate) ADR and occupancy,” Knight Frank said.
High Tariff A hotels logged a 15 percentage point (ppt) YoY increase in occupancy rate to 56% from January to August with its ADR up 16.5% YoY to $1,671.
Meanwhile, High Tariff B hotels saw an 11 ppt YoY rise to 71% in occupancy rate and a 31.8% YoY increase in ADR to $820.
Five-star hotel rooms posted a 15 ppt increase YoY to 56%, with ADR up 16.5% to $1,671.
The occupancy rate of Medium Tariff hotels, on the other hand, dropped by five ppt to 66% but its ADR for the first eight months jumped 47.1% YoY to $687.