In 2018, Hong Kong was Asia's fastest growing hotel market.

Hong Kong will be the fastest growing hotel market in Asia in 2018, according to JLL's new hotel report. Hotel occupancy rates have reached all-time highs as a result of steadily rising visitor arrivals in Hong Kong, triggering a return in hotel room rate increase. Sale in Qatar | For Sale in Qatar

In the first half of 2018, the Hong Kong Tourism Board recorded a 6.2 percent increase in overnight arrivals and a 13 percent increase in market-wide revenue per available room ("RevPAR") to HKD1,214. With solid visitor demand fundamentals and few additions to hotel supply, JLL expects this growth pattern to continue throughout the year, with Hong Kong recording the highest RevPAR growth among Asia's major hotel markets, estimated to be in excess of 10%. Looking beyond 2018, JLL is optimistic about tourist arrivals and RevPAR development, citing the completion of the Hong Kong-Zhuhai-Macao Bridge and the Guangzhou-Shenzhen-Hong Kong Express Rail Link this year as positive factors. The new transportation links would increase travel to Hong Kong and increase hotel demand.

JLL's Hotels & Hospitality Group's Senior Vice President, Corey Hamabata, says, "We saw market-wide hotel occupancy levels hit record highs in 2017, but average daily rate growth remained subdued until late in the year. We started seeing hotels with strong year-over-year growth in average daily rates in 2018, suggesting that market tightness was allowing hotel operators to demand higher prices. These two factors are now in sync, implying that the demand will continue to expand in the near and medium term."

Currently, Hong Kong has nearly 80,000 hotel rooms. Between 2018 and 2022, the compound annual growth rate (CAGR) of new hotel supply in Hong Kong is forecast to be 2.4 percent, which is lower than the previous ten-year CAGR of 4.3 percent (2007-2017). The measured increase in supply greatly reduces the risk of a surplus of new hotel openings reversing the market's recent upward trend.

JLL's Hotels & Hospitality Group's Senior Vice President, David Marriott, said, "The hotel industry in Hong Kong has a bright future. Since hotels have such high fixed costs, rises in sales usually result in even greater increases in profit. This is particularly true when revenue growth is driven by average rate growth rather than occupancy. As a result, we anticipate solid profit growth for hotel owners in the coming years."

"While we expect growth in all segments, we anticipate that the budget/mid-scale segment will expand faster than the upscale/luxury segment at first. Hotel owners who want to take advantage of this growth should concentrate on active sales and channel management, as well as keeping their properties in good repair "Marriott came up with the idea.

Local investors have flocked to Hong Kong's hotel market because of its investment potential. Since 2017, the industry has seen 17 hotel acquisitions with a cumulative transaction value of HKD15.72 billion. "While some investors have purchased hotel properties with the intention of converting them to other uses, the pattern of hotel fundamentals shows that owning hotels in Hong Kong is still a good investment thesis. As a result, we anticipate continued hotel investment in the coming year "Hamabata added.

Comments

Post a Comment

Popular posts from this blog

Hypothecary refinancing! Situation in the market

The Czech Republic's mortgage refinance market has recently gained importance. In recent years the Czech mortgage boom has rapidly matured with a rapid development and stable growth beginning in 2001 and a year-on-year increase of over 40 percent. Over the years, a solid customer base has been created. At the end of 2007 the total number of mortgages granted amounted to approximately 265,000, with the total mortgage volume reaching almost CZK 470 billion. The importance of the future potential of this "existing mortgage" market was recently realized by local banks and they are slowly trying to address this market. But an open customer hunt is most likely held back by the policy of the biggest bankers who fear the refinancing "Pandora's Box." A few small banks can already pro-actively offer mortgage refinancing through their mortgage products, which are especially designed to refinance and have favorable terms and lower interest rates.  apartments for rent qa...
Read more

Rising house prices in Spain have slowed, but are still increasing.

In the second quarter of 2019, the price of used housing in Spain rose 1.7 percent. The latest idealista price index shows that the average house price in Spain is 161 euros per square foot, or about 1,733 euros per square meter. This represents an increase of 6% over last year's figures . شقق للبيع في قطر As noted by Fernando Encinar, who serves as the head of research for idealista, we are seeing the same type of pattern over and over again. The cost of housing has risen everywhere, but at a slower rate. Some caveats apply, such as the case with the Spanish islands, where the strong tourism industry keeps prices artificially high. Also notable is the decrease in Barcelona's prices year-over-year for the first time since June 2014. Although being quite moderate, this could be a watershed moment for Barcelona. “Even if housing policies at the municipal, regional, and national levels do affect the development of property prices, we will have to wait a few months to see how these...
Read more

This New Mexican Design Fair is Creating a Stir!

Surprisingly, design fairs aren't often held in especially inviting (or design-forward) locations. I can't say I'm yearning to return to the gloomy, interminable halls of New York's Javits Center, Milan's Fiera, or Paris's Parc des Expositions, where I've easily tallied five hours of appointments without peeking out a single window to the outside after more than a year of canceled events. But last weekend, as things began to return to “normal,” whatever that means, I found myself at a different kind of design fair, agua fresca in hand, surveying new furniture, lighting, textiles, and accessories amid the blazing sun and crashing waves at architect Alfonso Quiones's Casa Naila in Puerto Escondido, Mexico. It was the first edition of Mexico Design Fair, a pre-pandemic concept that emphasized an appealing location, an intimate guest list of collectors and design insiders, and the current crop of Mexican-made items, all at a time when the country's desig...
Read more