Visitor arrivals totalled 58.47 million in 2017, marking an increase of 3.2% y-o-y and bringing to an end two consecutive annual declines.
Room Nights Sold (RNS) increased by 6.26% y-o-y in H2 2017, while Room Nights Available (RNA) increased by 5.28% y-o-y.
More than 1,300 new rooms were completed in H2 2017, a figure higher than the total number of rooms added to the market in full-year 2016.
The Hong Kong Tourism Board (HKTB) has announced plans to focus on attracting short-trip visitors and independent travelers, as well as high-spending overnight visitors.
Hotel transaction volume surged to HKD 16.7 billion in 2017, an increase of 645% y-o-y compared to the HKD 2.2 billion recorded in 2016.
CBRE Hotels expects a further improvement in visitor arrivals in 2018 and thus an increase in Room Nights Sold.
Hotel investment activity will depend on the availability of assets. Operating Income is expected to stablise but yields will compress further.