Hong Kong’s hotel capital market to hit USD1b in 2023 | Real Estate Asia
, Hong Kong

Hong Kong’s hotel capital market to hit USD1b in 2023

Full recovery is expected by next year.

Overall hotel supply in Hong Kong, according to JLL, is expected to remain relatively sluggish due to the current headwinds, including inflated construction costs and elevated interest rates.

In the first three months of 2023, 504 new hotel rooms entered the market as a result of the soft opening of the Regent, formerly known as Intercontinental Hong Kong, located in Tsim Sha Tsui.

Here’s more from JLL:

The hotel capital market in the city is expected to pick up towards the end of the year 2023, fuelled primarily by hotels with smaller key counts and assets from distressed companies, reaching USD 1.0 billion for the full year. 

Similarly, with the border reopening coupled with the current macroeconomic environment, we do not expect other significant transactions related to co-living and repurposing conversions.

Outlook: Initial tangible recovery expected, following 2Q23

While Hong Kong is slowly recovering, significant rebound travel is expected to start in 2Q23, following the Golden Week.

Although there may be some challenges and uncertainties in the short term, the hotel market in Hong Kong is poised for continued growth, and full recovery is expected by the end of 2024.

 

Note: Hong Kong Hotels refers to Hong Kong's luxury hotel market.

 

Join Real Estate Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

How Metland Indonesia deals with weaker residential purchasing power
The real estate firm continues to expand with residences that are attractive to consumers because of pricing, the ‘growing house’ concept, and sustainable features.