Hong Kong’s hotel industry experienced rising rates and occupancy in May 2017, driven by strong demand from travellers.
According to the latest data from STR, demand for accommodation in the city increased 4.8% year-on-year last month, which outpaced a 1.9% expansion of room supply. This allowed Hong Kong’s occupancy to increase 2.9% to 83.4%, and average daily rate (ADR) to edge 0.9% higher, to HK$1,234.66 (approx. US$158).
The city’s revenue per available room (revPAR) increased 3.8% to HK$1,029.24 (approx. US$132) last month, which remains significantly higher than the Asia Pacific average of US$72 in the first four months of 2017.
STR analysts said that several events in Hong Kong, such as ProWine Asia, the HKTDC medical supplies fair, and Hofex, the food and hospitality show, raised demand for hotel rooms in the city in May. The comparisons were also helped by a relatively weak performance in the same month last year.