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Hong Kong Enjoys Double-Digit RevPAR Gains

Hong Kong Enjoys Double-Digit RevPAR Gains

Vacation News » Asia Pacific Vacation News Edition | By Michael Gerrity | October 28, 2011 1:00 PM ET



According to STR Global, hotel performance in Hong Kong is in a healthy state. Year-on-year growth in revenue per available room (RevPAR) for the year-to-September 2011 is well into double digits at 28 percent. The increase is largely attributable to substantial improvements in average daily rate (ADR) as well as strong growth in occupancy.

September YTD 2011 performances (HK$)

str-global-kong-kong-report-october-2011.jpg

Within Hong Kong, strong RevPAR growth was reported by both Hong Kong Island (26.1 percent) and Kowloon (29.5 percent). However occupancies on Hong Kong Island, whilst slightly lower (82 percent) than those of Kowloon (82.6 percent), have grown significantly faster at 4.5 percent compared to 1.4 percent. Conversely, ADR in Kowloon is lower (HK$1,705.74) than Hong Kong Island (HK$1,930.94) but has grown faster at 27.7 percent compared to 20.7 percent. The variance in ADR between Hong Kong Island and Kowloon reflects the greater focus on business and luxury travelers in the former and leisure travelers in mainly mid-tier hotels in the latter. 

Taking a longer-term perspective, hotel RevPAR performance (on a rolling 12-month basis to eliminate the effect of any seasonality) shows that Hong Kong and both its submarkets are now above levels last seen in 1997. 

RevPAR, HK$ (rolling 12-month basis)

str-global-kong-kong-report-october-2011-chart-2.jpg

"RevPAR performance in Hong Kong now exceeds the highs of 1997 when Hong Kong moved from being a U.K. colony to a Special Administrative Region of China", said Elizabeth Randall, managing director of STR Global. "The role of Hong Kong as a gateway to China, its continued attraction as a stable international financial centre and the success of the Individual Visitor Scheme, coupled with the current weakness of the HK Dollar to the Renminbi in encouraging visitors from mainland China have all been part of this success story". 

STR Global currently samples more than 11,300 rooms on Hong Kong Island and more than 11,500 rooms in Kowloon. 




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