Hong Kong to see nearly 3,000 new hotel rooms for remainder of 2024

The Dorsett Kai Tak and the Metropark Hotel are notable expected openings.

During the third quarter of 2024, JLL said in a report that new hotel supply was limited to one hotel entering the Hong Kong market: the 114-key Ascott North Point, marking a return of The Ascott Limited into the city.

Several hotel openings are expected for the remainder of the year, totalling 2,797 rooms. Notable expected openings include the 373-key Dorsett Kai Tak and the 536-key Metropark Hotel, both located in Hung Hom.

Here’s more from JLL:

As of YTD August 2024, Hong Kong welcomed 29.5 million international tourists, representing a 129% increase Y-o-Y. The primary source market continues to be Mainland China, accounting for 78% of the market share.

In the first nine months of the year, hotels in Hong Kong recorded a marginal increase in RevPAR. Improvement in RevPAR was boosted by an increase in both occupancy and ADR.

Investment market showing cracks: transaction volume rises as prices decline

Two hotel deals were completed in Q3 2024: Urbanwood Hung Hom and the 63-key Popway Hotel for a total transaction volume of USD 151 million for the quarter.

More transactions are expected to close before end-2024, leading to a total investment volume of USD 500 million as investors have adopted a more cautious approach, leading to a large bid-ask spread.

Outlook: Steady growth towards full recovery

Tourist arrivals are accelerating Hong Kong’s recovery. The city’s third quarter was marked by a series of high-profile events, including the popular ULTRA Music Festival and concerts featuring global music stars.

With the festive season ahead, lodging and tourism should continue improving for the last quarter of the year. Full recovery is expected by end-2025.