What will drive Hong Kong’s hospitality industry for the rest of 2025?

Analysts say hoteliers will be vigilant yet optimistic.

With the Summer holidays over, Colliers noted in a report that Hong Kong returns to the busy season with a packed schedule of events and conferences. The end of Q3 and Q4 should see an uplift in investment and operating performance across the hotel sector, with potential spillover effects for certain retail and F&B sectors.

Here’s more from Colliers:

September sees the return of IHIF Asia – the International Hotel Investment Forum, the Belt and Road Summit and Centre Stage. October serves up the National Day and Golden Week celebrations and the Ultimate Tennis Showdown. November brings in the much-anticipated 15th National Games and Fashion Fest.

While challenges such as operational costs, non-room revenue and daily rates persist, hoteliers will be vigilant yet optimistic as they focus on capturing the potential upside over the next few months. With the Motto by Hilton open and the Kimpton set to open, Hong Kong Island and Kowloon will have new offerings, bringing more choice and excitement to the sector.

Investors will have an eye on interest rates and potentially stressed, distressed or timely opportunities as certain banks look for workout solutions and some owners look to recycle capital.

Hong Kong being the best performing IPO market globally in H1, raising more than HKD107 billion, and more activity planned in the second half, bodes well for increased capital entering the city. Recent mega events have boosted the city's global appeal from both business and leisure travellers. These factors, amongst others, will provide the hotel sector with some positive momentum as it enters the final third of the year.