CBRE(US:CBRE) 智通财经网·2025-07-28 13:24Group 1 - Hong Kong welcomed over 20 million international visitors in the first five months of this year, with expectations to surpass last year's total of 44.5 million, reflecting an 11.9% year-on-year growth but still 22% lower than the peak in 2018 [1] - The recovery is primarily driven by short-haul leisure travel, particularly from Mainland China, Thailand, and Taiwan, benefiting from promotional activities like "Hong Kong Night Vibrancy" [1] - Hotel performance in Hong Kong is mixed, with an overall occupancy rate rebounding to approximately 85%, just 4 percentage points lower than the average from 2018 to 2023, while the average daily rate (ADR) decreased by 4.3% [1] Group 2 - The average revenue per available room (RevPAR) stands at 1,132 HKD, which is 9.6% lower than the pre-pandemic peak in 2018, indicating a focus on short to medium-term occupancy improvement and price stabilization [1] - High-end hotels have fully recovered, with ADR reaching 2,145 HKD in the first five months of this year, nearly matching the 2,149 HKD from 2018, while mid-range and budget hotels are attracting a broader traveler base with competitive pricing [1] - Over the next five years, despite an increase in tourist arrivals, hotel supply is expected to grow at a compound annual growth rate of only 0.1%, with new supply mainly in the high-end market, leading to a continued tight overall supply [2] Group 3 - The transformation of some mid-range and budget hotels into student dormitories or labor accommodations will further tighten supply, making hotels an attractive investment option for both seasonal operations and stable income assets [2] - The outlook for Hong Kong hotels is cautiously optimistic for the second half of 2025, driven by cultural events, infrastructure upgrades, and international events [2] - Hotel operators need to adapt to changing traveler expectations and rising operational costs, focusing on enhancing guest experiences and attracting high-spending travelers for long-term growth [2]