Elevating experience to drive returns, the city's hotel sector is poised for a promising year in 2025, driven by an increase in overnight visitors, diversification of source markets, and a compelling events calendar.
The primary challenge remains in attracting higher-spending tourists and enhancing the visitor experience to boost average expenditure per visitor.
Key industry performance in 2024:
- Visitor numbers: The city welcomed 44.5 million visitors during 2024, marking a 31% increase from 2023. Overnight stays accounted for nearly 22 million visitors.
- Operational landscape: Occupancy (OCC) for 2024 increased by 3% year-on-year (y-o-y) to 85%, while the Average Daily Rate (ADR) was HKD 1,332, a decrease of 4.5%. Revenue Per Available Room (RevPAR) stood at HKD 1,132.
- Investment landscape: Hotel investment remained subdued due to high interest rates, market uncertainty, and limited access to bank financing. There were five notable transactions, with a total deal volume of HKD 1.988 billion.
For a comprehensive analysis of the Hong Kong hotel market, including operational figures, investment trends, and key themes shaping the industry in 2025, download the full Hong Kong Hospitality Insights | 2024 Overview & 2025 Outlook report.
