STR Global Reports RevPAR Gains for Hong Kong Hotels
By James Ruggia
October 02, 2012 9:27 PM
Hong Kong’s revenue per available room (RevPAR) grew 8.7 percent year-to-August (YTD) to HKD1,520.61 ($196), supported by buoyant occupancy levels that remained well above the 80 percent mark, according to STR Global, a provider of market information to the hotel industry. This RevPAR performance resulted from the highest occupancy and average daily rates (ADR) achieved for a January-to-August period since 2000. This is good news for hoteliers, particularly in the current economic environment, as more and more indicators point to a slowing of GDP growth globally and in China.
Hong Kong’s RevPAR for the first eight months of 2012 benefited from ADR growth (up 8.3 percent in Hong Kong dollars or up5.7 percent in Chinese Renminbi) and high occupancy levels, which has remained above the 80 percent mark since October 2010. Looking at the past 12 years, the recent peak performances were supported by increasing demand, which grew 2.9 percent on a compound annual growth rate (CAGR) for the January-to-August period over the past 12 years with supply increasing 2.4 percent CAGR over the same period.
Focusing on hotel performance by market segment, Hong Kong Island’s Luxury and Upper Upscale hotels saw the highest ADR YTD, reaching HKD2,381.2 (up 6.4 percent) or CNY1,941.2 (up 3.8 percent). Hong Kong Island Upscale and Upper Midscale hotels reported the highest occupancy level, as ADR increased by 12.3 percent in HKD or 9.7 percent in CNY YTD. Upscale and Upper Midscale hotels in Kowloon saw the highest RevPAR growth YTD, led by an increased ADR of 11.6 percent (HKD) or 8.9 percent (CNY). Benefiting from a positive exchange rate between the HKD and the CNY, Kowloon Luxury and Upper Upscale hotels saw increased ADR YTD in local currency, leading RevPAR to reach HKD1,762.6 YTD (up 5.3 percent).