Hotel occupancy averaged around 85% in 2024, but the Average Daily Rate (ADR) dropped 4.3% YoY.
Hong Kong welcomed over 20 million international visitors between January and May 2025—up 11.9% YoY—but arrivals remain 22% below 2018 levels, according to CBRE.
Growth in visitor numbers was driven primarily by short-haul leisure travel from Mainland China, Thailand, and Taiwan. Campaigns such as “Hello Hong Kong” and “Night Vibes Hong Kong” helped attract regional tourists, CBRE noted in its mid-year review.
Hotel occupancy averaged around 85% in 2024, close to pre-pandemic norms, but the Average Daily Rate (ADR) dropped 4.3% YoY. Revenue per Available Room (RevPAR) stood at $1,132, approximately 9.6% below 2018’s peak.
Luxury hotels have largely recovered, with ADR reaching $2,145 in the first five months of 2025—just shy of the 2018 average. Lower-tier properties, meanwhile, are competing on price.
Whilst tourism numbers are up, retail sales fell 5.5% YoY in the first five months of 2025. Mainland overnight visitor spending declined by 6%, whilst long-haul visitor spending grew 15%.
High-street retail rents posted a modest 0.9% QoQ increase, but overall leasing sentiment remains cautious.
