Passengers increase or decrease hotel prices in the second half of the year

CB Richard Ellis Hong Kong valuation and consulting director Wang Shengyu attended the radio program, said that the new hotel supply in the first half of the year was 1,000 rooms, the average rent for the first half of the year was 1,300 yuan, the occupancy rate rose slightly 400 ideas to 91%. The market is expected to have 1,500 new homes in the second half of the year, with an average annual rent of 1,200 yuan.

3,000 new homes supply new high next year

CB Richard Ellis said in a report earlier that in 2019, the number of hotel supply in Hong Kong peaked, with 3,000 rooms available, mainly based on mid-priced hotels. The supply of new hotels this year was less than expected due to delays in the completion of new hotel projects, such as the Marriott Hotel in Ocean Park, which will not be completed until October 2018. Other new supply markets are mainly targeted at mid- to high-end hotels and are expected to open in January next year.

In the first half of this year, visitors to Hong Kong recorded a 10% increase year-on-year, with a total of 30.61 million person-times, of which overnight visitors recorded a 6% increase. Wang Shengyu said that the second half of the year was affected by trade wars and exchange rate factors, coupled with the slowdown in the growth of mainland tourists and competition from Taiwan, Japan and South Korea, making Hong Kong’s attractiveness as a short-term tourist destination decline. Therefore, it is estimated that the annual visitor arrivals will increase by 3.6% to 4%. Asked whether the new supply will put pressure on the rent, he stressed that the average rent is related to the occupancy rate.

In the first half of the year, the activity of hotel transactions declined, and the market only recorded a few hand-to-hand records for small and medium-sized hotels. Some large assets scared away most buyers because the price was too high. The return on office rents at the same price may be higher than the hotel, so hotel sales are squeezed by the office market.