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近年の香港ホテル業界の動向を振り返ると、2014 年までは中国本土から
の宿泊客の増加を主因に好調に推移してきたものの、2015 年以降、宿泊
客数は減少に転じている。中国人以外の宿泊客数こそ底堅く推移している
ものの、中国経済の減速や香港ドル高が続くなか日本や韓国など近隣諸国
の人気の高まりにより、中国人宿泊客数が減少に転じたことが大きい。
また、客室数の推移をみると、中心部(Central, Tsim Sha Tsui等)における
高価格帯ホテルの新規供給量こそ依然として限られているものの、全体と
しては中心部以外の供給増を背景に増加基調を辿っている。
斯かる状況下、客室稼働率や客室単価は 2015 年以降下押しされているの
が実情。もっとも、客室稼働率は 86%とアジアの他の都市に比して良好な
水準にあり、客室単価もアジアの他の都市を大幅に上回る水準を維持。
ランク別に仔細にみると、高価格帯ホテルでは、中・低価格帯ホテルに比
して稼働率・単価ともに小幅の落ち込みに留まっている点が特徴的。これ
は、高価格帯ホテルでは、①中国人以外の外国人旅行客の比率が高いこと
に加えて、②宿泊部門以外の料飲部門においても安定した収入を確保して
いることから、中国人宿泊客数の減少の影響を受けづらいため。
今後を展望すると、中国人宿泊客数が低迷するなか当面冴えない環境が続
こうが、事業者別にはランクや立地によって斑模様の展開が見込まれる。
すなわち、中心部以外で低価格帯ホテルを手掛け、中国人宿泊客への依
存度の高い事業者は、新規客室数の増加も相俟って厳しい事業環境が続
くとみられる一方、中心部に位置し、中国人以外の宿泊客の比率の高い
高価格帯ホテルでは、客室数の大幅な増加は見込まれないうえ、料飲部
門の下支えもあり、総じて安定した事業環境が続こう。
産業トピックス
【香港駐在報告】
香港ホテル業界の今後の展望について
JESSICA KIM
STRATEGIC RESEARCH DIVISION
(HONG KONG)
Bank of Tokyo-Mitsubishi UFJ A member of MUFG, a global financial group
【要約】
2016年 9月
Hong Kong Hotel Industry|September 2016
Hong Kong hotel industry grew favourably owing to increase overnight visitors
driven by mainland Chinese in 2010-14. Meantime, overnight visitors from the other
countries were largely steady.
However, overnight visitors fell dragged by decline in mainland Chinese arrivals in
2015 and in 1Q16 due to slowdown in China economy, strong HKD and tight
competition from neighbouring countries. While, overnight visitors from other
countries stayed stable in 2015 and it rose in 1Q16.
Hotel supply grew modestly in the past few years. Especially, supply of high tariff
hotels in prime areas was tight (i.e. Central, Tsim Sha Tsui and Wan Chai).
Thus, occupancy rate and room rate declined in 2015 and 1Q16. However,
occupancy rate still remained at the highest level 86% compared with other major
Asian cities. Room rate also continued to be significantly above other cities.
By hotel classification, High Tariff A (“HTA”) hotels posted smallest drops in
occupancy rate and room rates compared with lower tariff hotels. This is because,
HTA’s guests consisted of large long haul visitors followed by other short haul
guests, while it less depends on mainland Chinese guests. Also, HTA’s other major
source of revenue, F&B, supported HTA to minimize impact when market
downturn. Thus, financial performance of HTA has been rather stable.
Overall market condition would remain lukewarm as overnight visitors might stay
soft in the near term. Amid possible tepid mainland Chinese arrivals, visitors from
the others may stay stable. Supply may rise modestly.
Hotel performance may vary by classification and area. Lower tariff hotels in non-
prime area might be challenged due to high dependency on mainland Chinese and
more new supply. While, HTA in prime area could be relatively competitive to
remain stable attributed to larger exposure to guests from other countries and limited
new supply. Also, flexible source of revenue would be supportive.
Industry Topic
Recent Trends and Outlook for Hong Kong Hotel Industry
JESSICA KIM
STRATEGIC RESEARCH DIVISION
(HONG KONG)
Bank of Tokyo-Mitsubishi UFJ A member of MUFG, a global financial group
SEPTEMBER 2016
【Summary】
0
Hong Kong Hotel Industry|September 2016
I. Hong Kong Hotel Industry Overview
1. Market Size …………………………………….……………………………………..
2. Demand ……………………………….………………………………..……………..
3. Supply …………………….…………………………………………………………...
II. Hotel Industry Performance
1. Overall Hotel……………………………….…….………….………………………….
(1) Operational Performance………………………………………………….…….
(2) Financial Performance .………………………………………………………….
2. Hotel Performance by Classification………………...…...…..............…................
(1) Operational Performance………………………………………………….…….
(2) Financial Performance .………………………………………………………….
III. Major Hotel Company / Group
1. Market Structure ………………………..…………………………………………….
2. Performance of Major Local Hotels……………………….………….…….……….
IV. Outlook and Conclusion
1. Industry Outlook …………………………………………………………………........
(1) Demand .…………………………………………………….…………………….
(2) Supply ..……………………………………………………………………………
(3) Government Stance ……………………………………………………………..
2. Performance by Hotel Classification and Area …………………………………….
3. Conclusion ……………..………………………………………………………………
Appendix ……………………..………………………………………………………………….
1
2
4
6
6
8
9
9
11
12
13
14
14
17
19
20
22
23
1
Hong Kong Hotel Industry|September 2016
I. Hong Kong Hotel Industry Overview
1. Market Size
◇ Hong Kong had 252 hotels offering 73,846 rooms which accounting for 86% of total tourist
accommodation
In 2015, among tourist accommodation in Hong Kong, hotel accounted for the majority of 86.3% (i.e.
73,846 rooms) and guesthouse shared the rest 13.7% (i.e. 11,712 rooms) in terms of the number of
rooms (Figure 1).
As per hotel classification(Note), the highest grade High Tariff A (“HTA”) hotel accounted for 24.4%
of total hotel rooms in 2015 (Figure 2). High Tariff B (“HTB”) and Medium Tariff (“MT”) were
responsible for 37.4% and 30.8% of total respectively. Average number of rooms per HTA hotel was
the greatest with 515 rooms in 2015. HTB and MT held 307 rooms and 220 rooms respectively in
average.
(Note) The hotel classification system is administrated by Hong Kong Tourism Board (“HKTB”). The classification is based on 5 key
indicators - ‘facilities’, ‘location’, ‘staff-to-room ratio’, ‘average achieved room rate’ and ‘business mix’. A scoring method is
used to decide the hotel category. HKTB does not disclose each hotel’s score or classification.
Figure 2: Hotel Classification (2015) Figure 1: Tourist Accommodation Breakdown (2015)
Guesthouse 13.7% [11,712 Rooms]
Hotel 86.3% [73,846 Rooms]
(Source) HKTB, Strategic Research Division (HK) of BTMU
%
HTA 35 18,037 24.4 515
HTB 90 27,631 37.4 307
MT 103 22,678 30.8 220
Unclassified 24 5,500 7.4 229
Total 252 73,846 100.0 293
HotelRooms
[2]
Number
[1][2] / [1]
(Note) Unclassified hotels are hotels not responding to HKTB's survey (Source) HKTB, Strategic Research Division (HK) of BTMU
2
Hong Kong Hotel Industry|September 2016
2. Demand
◇ Earlier healthy grown overnight visitors fell recently due to decline in Chinese visitors
In 2010-14, total overnight visitors rose favourably at 8.4% CAGR driven by increase in mainland
Chinese visitors (Figure 3), while visitors from short haul excluding mainland China and long haul
remained largely flat (Figure 4).
High growths of mainland Chinese arrivals were backed by China’s economic growth and
Individual Visit Scheme (“IVS”) which allowing mainland Chinese to travel to Hong Kong
without joining tour groups since its introduction in 2003(Note).
(Note) Cities with applicable IVS have expanded from 10 cities in 2003 (i.e. Beijing, Shanghai and 8 cities in Guangdong
Province), and currently it applied to 49 cities, mostly tier 1-2 cities.
However, total overnight visitors dropped by -3.9% YoY in 2015 and it continued to fall by
-5.8% YoY in 1Q16 due to decline in mainland Chinese arrivals. On the other hand visitors from other
countries remained steady in 2015 and it even rose by 8.2% YoY in 1Q16 although it could not cover
up decrease in mainland Chinese visitors.
Amid slowdown in China economy, Hong Kong faced tight competition to draw Chinese visitors
as other destinations (i.e. Japan, South Korea and Europe etc.) became more popular supported by
depreciation of their local currency and relaxation on visa requirement for inbound travellers.
While, Hong Kong was in strong HKD environment and there were some adverse sentiments
toward Chinese tourists which might have discouraged Chinese to visit Hong Kong.
-20
0
20
40
60
80
100
0
5
10
15
20
25
30
35
40
00 02 04 06 08 10 12 14
Overnight Visitors (excl. Mainland Chinese)
Mainlan Chinese
Growth of Total Overnight Visitors (RHS)
Growth of Mainland Chinese (RHS)
(Million) (YoY, %)
1Q
15
1Q
16
-40
-20
0
20
40
60
00 02 04 06 08 10 12 14
Short Haul (Excl. Mainland China)
Long Haul
(YoY, %)
1Q
15
1Q
16
Figure 4: Growth of Other Overnight Visitors Figure 3: Overnight Visitors
(Source) HKTB, CEIC, Strategic Research Division (HK) of BTMU (Source) HKTB, Strategic Research Division (HK) of BTMU
3
Hong Kong Hotel Industry|September 2016
Growth of overnight visitors to Hong Kong largely depended on growth of overnight mainland
Chinese. This is because, mainland Chinese have accounted for the largest portion of all visitors to
Hong Kong (Figure 5). Overnight arrivals within short-haul routes excluding mainland China
accounted for 20% of total, and arrivals from long-haul routes made 12%.
As per average length of stays, length of mainland Chinese overnight visitors has been gradually
shortened from 3.9 days in 2010 to 3.2 days in 2015, stays from others improved (Figure 6). Average
length of stays from short haul excluding mainland China and long haul visitors slightly rose from 2.7
and 4.0 days in 2010 to 2.9 and 4.1 days in 2015 respectively.
◇ Hong Kong maintained its popularity and ranked as a top city destination
Despite recent slump of overnight visitors mainly
owing to mainland China, Hong Kong is
considered as the most popular city to visit.
According to the ranking of world top city
destinations in 2014, Hong Kong continued to be
ranked at the 1st place with 27.8 million of
overnight visitors, followed by London (17.4
million), Singapore (17.1 million), Bangkok (16.2
million) and so on (Figure 7).
Figure 5: Breakdown of Overnight Visitors (2015)
(Source) HKTB, Strategic Research Division (HK) of BTMU
Mainland China 68%
S Korea4%
Taiwan 3%
Japan2%
SE Asia 9%
India 1%
Other Short-Haul 1%
US & Canada4%
Europe 5%
Oceania 2%
Other Long-Haul 1%
Short -Haul20%
Long -Haul12%
Figure 6: Average Length of Stays by Origin of Visitors
3.93.2
2.7 2.9
4.0 4.1
0
1
2
3
4
5
6
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
Mainland China
Short Haul (excl. Mainland China)
Long Haul
(Days)
Figure 7: World Top City Destinations
(Note) Data refers to overnight visitors (Source) Euromonitor International, Strategic Research Division (HK) of BTMU
Rank
(2014)City
Arrivals
(Million)
1 Hong Kong 27.8
2 London 17.4
3 Singapore 17.1
4 Bangkok 16.2
5 Paris 15.0
6 Macau 15.0
7 Dubai 13.2
8 Shenzhen 13.1
9 New York City 12.2
10 Istanbul 11.9
(Note) For short haul, S. Korea, Japan, Taiwan, SE Asia and India were included; for long haul, US, Canada, Europe and Oceania were included (Source) CEIC, Strategic Research Division (HK) of BTMU
4
Hong Kong Hotel Industry|September 2016
3. Supply
◇ Hotel room supply grew slowly. Especially higher grade hotels saw marginal growths
Hotel room supply rose slowly at 2.9% CAGR in
2013-15. Increase in room supply was mainly
driven by MT which grew by 6.4% CAGR during
the same period, while HTA and HTB hotels saw
marginal growths (Figure 8).
In HTA, room supply was very limited given high
standards to fit into HTA. There was no new HTA
hotel supply since 2013. In 2015, one HTB was
upgraded to HTA and it made the growth of HTA
rooms at 1.5% CAGR in 2013-15. HTB also saw
a modest rise at 1.2% CAGR.
◇ More hotels were opened in non-prime location. There were some project delays
By locations (Please refer to the location map on Appendix, pg. 23), more sizable new hotels were
established in non-prime location and prime location had relatively limited new supply for those over
100 rooms. In 2015, in prime location, some lower tariff hotels entered in the market (Figure 9).
Meantime, some supply was delayed. For example, a 299-room hotel project located in Wan Chai and
a 100-room hotel project in Tsim Sha Tsui were supposed to be delivered within 2015, but it postponed
to open in 2016.
Figure 9: Major New Supply by Locations
(Note) Above showed hotels with over 100 rooms (Source) HKTB, Strategic Research Division (HK) of BTMU
District Hotel Rooms District Hotel Rooms
Sheung Wan Butterfly On Hollywood 142 Kwun Tong L'hotel elan 254
Sheung Wan Best Western 432 Tai Kok Tsui Rosedale 435
Sheung Wan IBIS 550 Kwun Tong Dorsett Regency 361
Sheung Wan Holiday Inn Express 299 Tseung Kwan O Crowne Plaza 359
Tsim Sha Tsui Best Western Grand 396 Tseung Kwan O Holiday Inn Express 300
To Kwa Wan Vasky 151
Wan Chai Indigo 138 Lantau Island Auberge 325
Wan Chai OZO Wesley 251 Shatin Courtyard By Marriott 539
Yau Ma Tei Rainbow 126 San Po Kong Pentahotel 350
Sham Shui Po YHA Mei Ho 129
Sheung Wan iclub Sheung Wan 248 Kwai Chung Dorsett Tsuen Wan 547
Wang Chuk Hang Ovolo Southside 162
North Point iclub Fortress Hill 338
Mongkok Inn Hotel Hong Kong 199 Hung Hom Hotel sáv 388
Mongkok Holiday Inn Express HK Mongkok 147 To Kwa Wan Cruise Hotel 161
Sai Wan Grand City Hotel 214
Sub-total (Hotels with over 100 rooms) 2,928 Sub-total (Hotels with over 100 rooms) 5,013
Total (All hotels) 4,236 Total (All hotels) 5,4142012-2015
2015
2014
Prime Location Non-Prime Location
2013
2012
Figure 8: Hotel Room Supply
-3
0
3
6
9
12
15
18
21
0
10
20
30
40
50
60
70
80
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
MT
HTB
HTA
Growth-All Rooms (RHS)
(Thousand) (YoY, %)
6.4%
1.2%
1.5%
CAGR
(Source) HKTB, Strategic Research Division (HK) of BTMU
5
Hong Kong Hotel Industry|September 2016
In terms of room supply by selective district, most districts saw rather moderate growths in 2012-15
(Figure 10). Amid overall mild increase, relatively softer growths on room supply were observed in
major prime area than non-prime.
In prime location, Wan Chai provided 9,858 rooms as of 2015 with a modest growth at 2.1%
CAGR in 2012-15. Tsim Sha Tsui had the largest stocks of 16,749 rooms, but it registered the
smallest growth at 0.6% CAGR.
In non-prime location, Eastern & Southern Hong Kong had 6,371 rooms with rising of rooms at
2.1% CAGR in 2012-15. Other Kowloon offered 8,798 rooms and the number of rooms grew at
5.5% CAGR. New Territories embraced large stocks of 12,963 rooms, and it rose moderately at
4.3% CAGR.
For occupancy rate by district, most areas posted high occupancy rates over the recent past years
(Figure 11).
Despite decline in 2015, occupancy rates in most districts managed to maintain around 85% which
is considered as quite high level in hotel industry.
Occupancy rate of core prime location such as Central was slightly lower than other areas. In the
area, there are many higher tariff hotels are located. Such higher tariff hotels tend to adjust room
rate less aggressively to push up occupancy rate given their high brand image. Therefore, normally
occupancy rates of high tariff hotels are below the lower tariff hotels’. While, Tsim Sha Tsui and
Wan Chai saw higher occupancy rates partially due to more mixture of hotel classification in the
areas.
Figure 10: No. of Rooms by District Figure 11: Occupancy Rate by District
0
5,000
10,000
15,000
20,000
25,000
Centr
al /
We
ste
rn
Wan C
hai
Tsim
Sha
Tsui
Ya
u M
a T
ei /
Mo
ngkok
Ea
ste
rn &
So
uth
ern
HK
Oth
er
Kow
loon
New
Terr
ito
rie
s
Oute
r Is
land
2012 2013 2014 2015
(No. of Rooms)
Prime
4.9%2.1%
2.1%
0.6%
5.5%
5.0%
4.3%
2.7%
Non-Prime
(Note) Percentage figures refer to CAGR in 12-15 (Source) HKTB, Strategic Research Division (HK) of BTMU
60
65
70
75
80
85
90
95
100
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
Central / Western Wan Chai
Eastern & SouthernHong Kong
Tsim Sha Tsui
Yau Ma Tei /Mongkok
Others
(%)
(Note) Due to change of grouped district from 2012, until 2011, Central/Western was Central/Admiralty; Wan Chai was Wan Chai/Causeway Bay; Eastern/Southern HK was Eastern/Other HK (Source) HKTB, Strategic Research Division (HK) of BTMU
6
Hong Kong Hotel Industry|September 2016
II. Hotel Industry Performance
1. Overall Hotel
(1) Operational Performance
◇ Occupancy rate and room rate dropped in 2015, but Hong Kong still maintained high level
in major Asian cities
Historically, occupancy rate of all hotels has largely improved except for the sharp drops in 2003 and
2009 due to SARS outbreak and global financial crisis (Figure 12). Average occupancy rate rose from
82.0% in 2000-02 to 86.4% in 2004-08 and it further grew to 88.8% in 2010-14.
High occupancy rate in 2010-14 was supported by favourable growth in overnight visitors (i.e. 8.4%
CAGR) amid moderate increase in hotel room supply (i.e. 5.0% CAGR). However, it fell to 86% in
2015 and it stood at same level in 1Q16 owing to decline in visitors.
For occupancy rates in major cities in Asia in 2015, Hong Kong still maintained the highest occupancy
despite decline (Figure 13). Along with Hong Kong, hotel occupancy rates in Singapore and Taipei
slipped compared with a year earlier. On the other hand, Tokyo saw significant improvement
supported by increase of tourists.
Figure 12: Occupancy Rate of All Hotels Figure 13: Occupancy Rate in Asian City (2015)
60
65
70
75
80
85
90
95
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
(%)
82.0%
88.8% 86.4%
1Q
15
1Q
16
(Source) HKTB, Strategic Research Division (HK) of BTMU
86.0 84.9 82.676.9 75.8
65.5 63.0
0
20
40
60
80
100
HK S'pore Tokyo Seoul Taipei Shanghai Beijing
(%)
HKTokyoS'pore
TaipeiSeoul
ShanghaiBeijing
(n.a.)
(Note) 1. Average occupancy of all hotels 2. Arrows indicate occupancy rate increase / decrease in 2015 compared with 2014 3. For Tokyo, rate in Tokyo Metropolitan area was used 4. For Seoul, rate for 2015 is not released. Figure for 2014 was used (Source) CEIC, HKTB, Others, Strategic Research Division (HK) of BTMU
7
Hong Kong Hotel Industry|September 2016
Room rate also showed similar movement as occupancy rate trend (Figure 14). It stood at high level
in the recent past years when demand grew faster than room supply, but it faltered in 2015 due to weak
demand.
Although room rate declined in 2015, room rate in Hong Kong remained expensive compared with
other major Asian cities (Figure 15) . Among major cities, hotel room rates in Singapore and Hong
Kong were significantly higher than other major cities in the region.
179172
151145 143
108
81
0
20
40
60
80
100
120
140
160
180
200
S'pore HK Tokyo Seoul Taipei Shanghai Beijing
(USD/Night)
HK
Tokyo
S'pore
Seoul Taipei
Shanghai
Beijing
Figure 14: Room Rate of All Hotels Figure 15: Room Rate in Asian City (2015)
0
500
1,000
1,500
2,000
0001 02 0304 05 0607 08 0910 111213 1415
(HKD)
1Q
15
1Q
16
(Source) HKTB, Strategic Research Division (HK) of BTMU
179172
151145 143
108
81
0
20
40
60
80
100
120
140
160
180
200
S'pore HK Tokyo Seoul Taipei Shanghai Beijing
(USD/Night)
HK
Tokyo
S'pore
Seoul Taipei
Shanghai
Beijing
(n.a.)
(Note) 1. Average room rate of al hotels 2. Arrows indicate room rate increase / decrease in 2015 compared with 2014 3. For Seoul, rate for 2015 is not released. Figure for 2014 was used (Source) CEIC, HKTB, Others, Strategic Research Division (HK) of BTMU
8
Hong Kong Hotel Industry|September 2016
(2) Financial Performance
◇ Hotel revenue was growing slowly. NOIPAR margin softened in 2014, but it remained at
high level
Historically, hotel revenue saw overall growing trend, except the years with the impacts from
extraordinary conditions (i.e. Weak GDP affected by 9/11 attack in 2001, outbreak of SARS in 2003
and global financial crisis in 2009) (Figure 16).
In 2010-14, hotel revenue continued to increase, although it significantly slowed down since 2012
after high growth in 2010-11, rebound periods as a recovery from global financial crisis.
In terms of Net Operating Income Per Available Room (“NOIPAR”) margin(Note), margin largely
improved besides exceptional years (Figure 17). In 2010-14, despite small range of ups and downs,
NOIPAR margin of all hotels maintained high level within 35%-42%.
(Note) NOIPAR margin was derived from Revenue Per Available Room (“RevPAR”) and NOIPAR. It was simply calculated as
NOIPAR divided by RevPAR.
Figure 16: Hotels Revenue Figure 17: NOIPAR Margin of All Hotels
-30
-20
-10
0
10
20
30
40
50
0
5
10
15
20
25
30
35
40
45
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
(HKD Billion) (%)
Hotel Revenue
Growth rate(RHS)
(Source) CEIC, HKTB, Strategic Research Division (HK) of BTMU
0
10
20
30
40
50
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
(%)
(Source) HKTB, Hong Kong Hotel Industry Review, Strategic Research Division (HK) of BTMU
9
Hong Kong Hotel Industry|September 2016
2. Hotel Performance by Classification
(1) Operational Performance
◇ Amid occupancy rate and room rate of each hotel classes fell in 2015, higher tariff hotels
posted smaller downward adjustments
The trends of occupancy rate by hotel classification (Figure 18) followed the trend of all hotels (Figure
12, pg. 6). In 2010-14, average occupancy rates for HTA, HTB and MT saw high rate at 84.6%, 90.0%
and 91.6% respectively.
As per extraordinary event during the period, Occupy Central protest had lasted for about 3 months
in the later 2014 (Sep-Dec 2014). Major protest sites were mainly in prime locations such as
Central, Causeway Bay and Mongkok. Accordingly, occupancy rate of HTA, mostly located in
prime areas, dropped YoY in Oct-Dec 2014. However, annual occupancy rate in 2014 remained
the same compared to last year due to overall higher occupancy rates before the event. Thus,
overall impact was not significant.
However, each sector posted occupancy rate decline in 2015. The dropping rate was greater in MT
compared with HTA and HTB. Occupancy rates of HTA and HTB fell by 3 percentage points for each
in 2015 from 2014 (i.e. HTA: 86% 83%, HTB: 91% 88%). While, MT dropped 5 percentage
points from 92% in 2014 to 87% in 2015. In 1Q16, occupancy rates largely improved.
Room rate by hotel classification also witnessed similar paths of all hotels (Figure 19). In 2010-14,
room rates of HTA, HTB and MT rose at 5.7%, 6.2% and 6.8% CAGR respectively.
However, in 2015, room rates dropped for all classifications. More significant decline was observed
in lower tariff hotels such as HTB and MT. Room rates of HTB and MT fell by
-11.5% and -11.0% YoY respectively in 2015, amid HTA’s room rate posted a relatively less decline
by -7.5% YoY. In 1Q16, room rates continued its downward trend for all classifications.
0
500
1,000
1,500
2,000
2,500
3,000
0001 0203 04 0506 0708 09 1011 1213 14 15
HTA
HTB
MT
(HKD)
-7.5%
-11.5%
-11.0%
-8.6%
-9.1%
-10.2%
60
65
70
75
80
85
90
95
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
HTA
HTB
MT
(%)
-3%pt
-3%pt
-5%pt
1Q
15
1Q
16
Figure 18: Occupancy Rate by Hotel Classification Figure 19: Room Rate by Hotel Classification
(Source) HKTB, Strategic Research Division (HK) of BTMU (Source) HKTB, Strategic Research Division (HK) of BTMU
1Q
15
1Q
16
10
Hong Kong Hotel Industry|September 2016
◇ Higher tariff hotels were relatively immune against decline in mainland Chinese visitors
The major reasons for underperformed lower tariff hotels in 2015 could be addressed by comparing
country of guests portfolios by hotel classification (Figure 20).
HTA’s guests consisted of large portion of long-haul visitors. Together with Europe (15.9%),
America (15.1%), Oceania (6.1%) and others (2.2%), long haul visitors accounted for 39.3%.
Other Asia (excl. Mainland China) filled 31.7% and mainland China shared relatively smaller
portion of 25.8% compared with lower tariff hotels.
For HTB, guests from other Asia (excl. Mainland China) accounted for 35.2%, followed by
mainland China (33.2%) and long haul visitors (30.7%).
MT’s guest concentration was more severe as it largely depends on mainland China. Mainland
China accounted for 42.8%, followed by other Asia (33.0%) and long haul visitors (24.2%).
As we confirmed earlier, decline in overnight visitors in 2015 was owing to drop in overnight mainland
Chinese visitors, while visitors from others remained steady. Thus, it affected MT the most and
resulted in its underperforming. On the other hand, HTA was relatively immune.
In addition, HTA is more flexible when facing
decline in room guests as revenue sources are
more diversified compared with lower tariff
hotels (Figure 21).
HTA’s department revenue per available room
was generated by rooms (56.5%) and Food &
Beverage (39.3%), while MT’s revenue was
highly relied on rooms (85.8%) and less
contribution by Food & Beverage (12.2%).
Figure 20: Country of Guests by Hotel Classification (2010-14)
Figure 21: Breakdown of Revenue (2014)
(Note) Revenue per available room was used (Source) HKTB, Hong Kong Hotel Industry Review, Strategic Research Division (HK) of BTMU
Department HTA HTB MT
Rooms 56.5% 73.4% 85.8%
Food & Beverage 39.3% 23.3% 12.2%
Telephone 0.2% 0.3% 0.1%
Spa/Health Club 1.4% 0.2% 0.0%
Minor 1.4% 1.4% 0.8%
Rental&Other Income 1.2% 1.3% 0.9%
Total 100.0% 100.0% 100.0%
Other Asia, 35.2%
Mainland China, 33.2%
Europe, 13.7%
America, 9.6%
Oceania, 5.8%
Others, 1.6%
Airline Crew, 0.9%HTB
Other Asia, 31.7%
Mainland China, 25.8%
Europe, 15.9%
America, 15.1%
Oceania, 6.1%
Airline Crew, 3.2%
Others, 2.2%HTA
Mainland China, 42.8%
Other Asia, 33.0%
Europe, 9.3%
America, 8.7%
Oceania, 4.4%
Others, 1.9%
MT
(Note) 1. Figures shown are averages of percentage in 2010-14 2. Other Asia refers to Asian countries excluding mainland China; Others include Middle East and Africa (Source) HKTB, Hong Kong Hotel Industry Review, Strategic Research Division (HK) of BTMU
11
Hong Kong Hotel Industry|September 2016
(2) Financial Performance
◇ Higher tariff hotels maintained stable NOIPAR margin and remained relatively healthier
conditions during market downturn compared with lower tariff hotels
Higher tariff hotels, especially HTA,
remained stable over the past longer periods
(Figure 22).
Higher tariff hotels were less affected by
extraordinary negative impacts in 2001, 2003
and 2009, while lower tariff hotels like MT
saw more fluctuations and posted negative
margins in 2001 and 2003.
It implied HTA’s thicker buffer to remain
profitable even under the difficult market due
to more flexibility with other revenue source
and better operational management such as
cost control.
A number of HTA hotels have high quality restaurants to attract local customers. In these days,
many of those HTA hotels are offering more promotions on luncheon buffet and fine dining to
encourage sales from other source of revenue. Also, some large HTA hotels could generate revenue
from banquette for large events.
Generally, HTA hotels have better management to control the cost by streamlining operation,
employing more contract staffs instead of permanent staffs and using outsourcing services
(i.e. Laundry and cleaning etc.).
Figure 22: NOIPAR Margin by Hotel Classification
(Source) HKTB and Others, Hong Kong Hotel Industry Review, Strategic Research Division (HK) of BTMU
-20
-10
0
10
20
30
40
50
60
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
HTA
HTB
MT
(%)
12
Hong Kong Hotel Industry|September 2016
III. Major Hotel Company / Group
1. Market Structure
◇ Revenue of top 10 hotel companies / groups held 37.6% of total in 2015 with solid positions
of local hotels
In terms of market share of hotel by revenue in
Hong Kong, top 10 hotel companies / groups
accounted for 37.6% of total revenues of all
hotels in 2015 (Figure 23).
Harbour Plaza Hotels & Resorts ranked top
with 7.8% of market share in the market,
followed by Marriott, Regal Hotels, Sun Hung
Kai and so on. Especially, local hotel
companies / groups were well positioned.
Majority of local hotel companies / groups are
owned and/or operated by local property
developers / investors (Figure 24).
Figure 24: Number of Room by Major Local Hotel Company / Group (2015)
(Note) Above list is as per information from Euromonitor. Some hotels may not be covered (Source) Euromonitor Int'l, Strategic Research Division (HK) of BTMU
Local Hotel Company / Group HotelRoom
(1,000)
CK Property Holdings Harbour Plaza Hotel 3.3
- Rambler 1.6
Harbour Grand 1.4
Kowloon Hotel 0.7
Regal Hotels International Regal 3.9
- one of the largest hotel groups in Hong Kong iclub 0.3
Sun Hung Kai Properties Royal Plaza Hotel 0.7
- one of the leading property developers Royal View Hotel 0.7
in Hong Kong Four Seasons 0.4
Royal Garden 0.4
Royal Park Hotel 0.4
Sino Group Royal Pacific Hotel & Towers 0.7
- a hotel and property development group in City Garden Hotel 0.6
Hong Kong Conrad Hong Kong 0.5
Hong Kong Gold Coast Hotel 0.5
Island Pacific Hotel 0.3
Kerry Group Shangri-La 1.3
- a group in hotel, property and logistics business Hotel Jen 0.3
Jardine Matheson Holdgs. The Excelsior 0.9
- a multinational conglomerate with businesses in hotel and Mandarin Oriental 0.6
property development mainly in Asia
Wharf (Holdgs) Ltd. Marco Polo 0.7
- a leading property investment and development Gateway 0.4
group in Hong Kong Prince 0.4
Henderson Land Development Mira 0.5
- a leading property developer in Hong Kong Silvermine 0.1
Mira Moon 0.1
HK Metropark China National Travel Service (HK) Metropark 1.4
Hotels Mgt Co Ltd - a mainland China-based travel company
Hong Kong & Peninsula 0.3
Shanghai Hotels Ltd - mainly a hotel development and management company
Owned and / or Operated by
Harbour Plaza Hotels & Resortsa major subsidiary of Hong Kong's top property developer CK
Hutchison Holdings
Regal Hotels International
Holdings Ltd
Sino Hotels Holdings Ltd
Sun Hung Kai Properties Ltd
Shangri-La Asia Ltd
Miramar Hotel & Investment Co
Ltd
Hong Kong & Shanghai Hotels Ltd
Mandarin Oriental International
Ltd
Marco Polo Hotels Management
Ltd
Figure 23: Market Share of Hotel Company/Group
by Revenue (2015)
(Note) 1. * refers to local hotel companies / groups 2. Airbnb is not included (Source) Euromonitor, Strategic Research Division (HK) of BTMU
Hotel Company / Group %
1 Harbour Plaza Hotels & Resorts* 7.8
2 Marriott Int'l Inc 5.4
3 Regal Hotels Int'l Holdings Ltd* 4.6
4 Sun Hung Kai Properties Ltd* 4.4
5 Sino Hotels Holdings Ltd* 3.1
6 Shangri-La Asia Ltd* 2.9
7 Hyatt Hotels Corp 2.7
8 Mandarin Oriental Int'l Ltd* 2.6
9 Marco Polo Hotels Management Ltd* 2.6
10 Accor Hotels Group 1.5
11 Miramar Hotel & Investment Co Ltd* 1.3
12 HK Metropark Hotels Management Co Ltd* 1.1
13 Hong Kong & Shanghai Hotels Ltd* 0.8
- Others 59.0
37.6%
13
Hong Kong Hotel Industry|September 2016
2. Performance of Major Local Hotels
◇ Key operating indicators improved in the past 6-year and remained high level despite
downward trends in 2015
In line with industry performance, major local hotels registered overall improvement on key operating
indicators over the past 6 years since the recovery year from the global financial crisis.
According to various data sources, most hotels saw significant improvement in occupancy rate in
2010-15 despite YoY decline in 2015. Average Daily Rate (“ADR”) also grew gradually during the
same periods for most hotels even though it saw downward adjustments in 2015 along with decline in
occupancy rate under the soft market.
Therefore, RevPAR, which is derived from multiplying occupancy rate with ADR, improved notably
in 2010-15 as occupancy rate and ADR mostly rose. By following the trends of occupancy rate and
ADR, RevPAR decreased YoY in 2015.
Although some operational performances of major local hotels declined in 2015 compared to last year,
occupancy rate in 2015 was still high at 85% in average. Also, ADR and RevPAR remained at a high
level in 2015. Especially, favourable high growth in RevPAR in 2010-15 allowed hotels to well cover
the rising costs and maintain profitable positions.
< Comments from Major Property Consultants >
“Although we don’t have exact data from each hotel, it is considered that revenue of hotel was enough to
cover the cost to remain profitable despite weakened market in 2015. So far, we haven’t heard of any
hotel suffering from loss in 2015. Hotel business is rather stable and less fluctuating compared with other
commercial properties.”
“I don't think hotels in Hong Kong are under pressure to record loss. Market condition is not as great as it
was, but occupancy rate and room rates are still high. Thus, hotel sector is profitable despite margin could
have been posted downward correction.” (Aug 2016)
14
Hong Kong Hotel Industry|September 2016
IV. Outlook and Conclusion
1. Industry Outlook
(1) Demand
◇ Overnight visitors may remain weak in the short term under economic uncertainties
Overnight visitor arrivals may stay weak as unfavourable macro-economic conditions are unlikely to
reverse in the near future and tight competitions may remain.
There are rising uncertainties in global economy as many regions are under the headwind due to weak
commodities prices, geopolitical tensions and recent Brexit. Especially, China economy may continue
to slow down and HKD might remain strong.
According to recent outlook by IMF, global GDP is forecast to see slow growth (Figure 25). In 2016,
global economy expects to grow at a modest 3.1%, broadly in line with last year, and it may improve
moderately in 2017. US economy is projected to see steady growth, and China economy may still
expand, despite growing at the slowest level over the past 25 years.
Given the above, inbound visitors may neither pick up significantly nor further drop sharply. HKTB
projects total visitor arrivals including overnight and same day visitors to shrink, but at a decelerating
pace, by -1.8% YoY in 2016 (Figure 26).
Anticipating decline in visitors would be mainly due to one country factor of weakening mainland
Chinese visitors, while visitors from others may remain stable. Thus, there is no critical change or
deterioration on Hong Kong city itself, and Hong Kong would remain as highly attractive destination.
Figure 26: Total Visitor Arrivals Forecast Figure 25: GDP Growth Forecast
-4
-2
0
2
4
6
8
10
12
14
16
00 02 04 06 08 10 12 14 16
Global
Hong Kong
China
(%)
Forecast
(Note) IMF forecast figures were used for global and China, while Bloomberg consensus forecast was used for Hong Kong (Source) IMF, Bloomberg, Strategic Research Division (HK) of BTMU
-2.5
-1.8
-5
0
5
10
15
20
25
30
0
10
20
30
40
50
60
70
05 06 07 08 09 10 11 12 13 14 15 16
(Million) (YoY, %)
Total Visitors
Growth rate(RHS)
Forecast
(Source) HKTB, CEIC, Strategic Research Division (HK) of BTMU
15
Hong Kong Hotel Industry|September 2016
◇ Hong Kong is expected to remain as an attractive destination supported by ongoing
development or enhancement of diversified tourist attractions
Hong Kong continues to develop and enhance various tourist attractions. Such major projects are
expected to help to draw tourists and increase revisits.
Ocean Park is developing an all-weather indoor cum outdoor water park at Tai Shue Wan, which
is expected to be completed in 2H18. According to market information, Park’s first hotel, Hong
Kong Ocean Park Marriott Hotel, could be introduced at the earliest in 2017.
Hong Kong Disneyland will continue to introduce a series of new initiatives. A new themed area
with Marvel’s Iron Man franchise and a new exploration-themed hotel may open in end-2016 and
early 2017 respectively in tentative plan.
In addition, several enhancement projects are in progress. Dr Sun Yat-sen Historical Trail will be
updated and enriched by this year. Revitalizing the Avenue of Stars is expected to be completed
in 2018.
Some of the potential visitors to Hong Kong Disneyland could be absorbed by Shanghai Disneyland,
but Hong Kong would remain its popularity over time.
There is concern that visitors may further deteriorate as one of major attraction Hong Kong
Disneyland could lose its competitiveness due to recent opening of Shanghai Disneyland in Jun
2016. Thus, some potential visitors to Hong Kong Disneyland would be inevitably absorbed by
Shanghai Disneyland, and impact might be more apparent in the short term.
However, Hong Kong Disneyland has its own strengths such as more international taste, warm
weather in winter and still cost efficiency with convenience of travel for visitors from close
distance of Guangdong and southern China. In addition, Hong Kong Disneyland is under the
expansion and will open new attractions including Iron Man-themed area and an exploration-
themed hotel.
16
Hong Kong Hotel Industry|September 2016
◇ In the long term future, cross boarder infrastructure projects may support visitor flow
There are two large-scale cross boarder
infrastructure projects in progress, namely Hong
Kong-Zhuhai-Macau Bridge (“HZMB”) and
Guangzhou-Shenzhen-Hong Kong Express Rail
Link (“GSHXRL”). Both projects are expected to
complete in 2018 at the earliest.
HZMB consists of bridges and tunnels crossing
Lingdingyang channel that will connect Hong Kong,
Macau and Zhuhai (Figure 27). Approximate 50
kilometres-length project is expected to shorten
travelling time from Macau and Zhuhai to Hong
Kong from current 60mins to 45mins.
GSHXRL is high speed rail development connecting
Guangzhou-Shenzhen-Hong Kong. This would reduce travelling time from Guangzhou to Shenzhen
from 120mins to 48mins, and from Shenzhen to Hong Kong from 45mins to 14mins.
With support from substantial reduction on travelling time, these mega-size projects may facilitate
intercity traffic flow upon completions. Therefore, it is likely to support more inbound travellers and
might enhance hospitality industry in Hong Kong.
Figure 27: HZMB and GSHXRL Projects
(Source) HZMB, Public information
Strategic Research Division (HK) of BTMU
45mins 14mins
60mins 45mins
120mins 48mins
< Comment from a Major Property Consultant >
“Development of bridges between Hong Kong and Macau as well as high speed rail link between China
and Hong Kong are expected to stimulate traffic flow. Not only leisure purpose, but also travellers for
business could be encouraged as they could come across to country more easily for face-to-face meetings
rather than video conference.”
(Aug 2016)
17
Hong Kong Hotel Industry|September 2016
(2) Supply
◇ Supply might rise moderately with possibility of downward adjustment
Based on the current schedule, supply of
hotel rooms may rise by 2.7% YoY in 2016
and it would increase further at above 4.5%
in 2017-18 (Figure 28).
Hotel room supply has been adjusted flexibly
in line with demand condition. In fact, hotel
room supply were estimated to grow by 3.0%,
4.4% and 5.4% YoY in 2015-17 according to
the projections made in 2015. However, it
turned out increasing 1.5% in 2015 and has
adjusted lower for 2016-17.
For the recent cases, due to soft tourism
condition, the original plans of hotel
developments have changed to office developments for better investment returns. Developers
Henderson Land, Tai Hung Fai Enterprise and Billion Development have all changed their hotel
development plans in North Point, Western Central and Tsuen Wan area into office or commercial
buildings.
Also, Hong Kong government reassured not to stop selling land for housing development in order to
solve shortage supply of residential units. While, there is possibility to re-plan the land originally
designed for hotel into residential development in some areas (e.g. Kai Tak Development Area). Thus,
supply may not overflow in the market.
Figure 28: Total Hotel Rooms Supply Forecast
(Note) Total hotel rooms include the number of rooms of HTA, HTB, MT as well as unclassified hotels (Source) HKTB, Strategic Research Division (HK) of BTMU
1.52.7
4.94.5
0.6
0
2
4
6
8
10
12
14
0
20
40
60
80
100
05 07 09 11 13 15 17 19
(Thousand) (YoY, %)
Total Hotel Rooms
Growth rate(RHS)
Forecast
18
Hong Kong Hotel Industry|September 2016
◇ Supply of HTA hotels would be limited especially in prime area
As for major new supply projects, majority of hotel supply would be located in non-prime locations
North Point, Kwun Tong and San Po Kong etc. (Figure 29).
Over the next 4 years, hotel room supply (over 100 rooms) in non-prime locations would account to
72.9%, while that in prime locations is expected to be relatively small at 27.1%. Although there is no
available information for the tariff classification on future hotel projects, it is estimated that supply of
HTA hotels in prime location might be even more limited in next few years according to market insight.
(Note) 1. Above showed hotel / hotel extension projects (over 100 rooms) approved by Building Authority 2. As of HKTB's 1Q16 report, no specific completion schedule is released yet on well-known projects of redevelopment of Murray Building in Central and Disney Explorers Lodge in Lantau Island and Ocean Park Hotel (Source) HKTB, Company, Strategic Research Division (HK) of BTMU
District Hotel/ Location Rooms District Hotel/ Location Rooms
Wan Chai 373 Queen's Rd East 299 Hung Hom Kerry Hotel Hong Kong 545
Tsim Sha Tsui 114 Austin Road 155
Tsim Sha Tsui Rosewood Hong Kong 600 Kwai Tsing Cheung Wing Road 380
Tsim Sha Tsui 18 Salisbury Road 334 Sha Tin Siu Lek Yuen Road 680
Wan Chai 26 Harbour Road 120 Sai Kung Wai Man Road 275
To Kwa Wan iclub To Kwa Wan Hotel 340
Kwun Tong 97 How Ming St. 286
San Po Kong 20 Tai Yau St. 334
Tsim Sha Tsui Butterfly on Austin 197 Kwun Tong i Hotel (Kwun Tong) 178
Mongkok iclub Mongkok Hotel 288 North Point North Point & Shu Kuk St. 680
Tai Kok Tsui 103 Tung Chau St. 154
San Po Kong 210 Choi Hung Road 437
North Point Oil Street 840
Yau Tong 428 Cha Kwo Ling Road 454
2019 Wan Chai 25 Morrison Hill Road 161 Kwun Tong 28A Hung To Road 168
Sub-total (Hotels with over 100 rooms) 2,154 Sub-total (Hotels with over 100 rooms) 5,751
Total (All hotels) 3,134 Total (All hotels) 6,5932016-2019
2018
Prime Location Non-Prime Location
2016
2017
Figure 29: Future Major New Supply by Locations
< Comments from Major Property Consultants >
“HTA hotels had very limited new supply so far especially in prime location. Limited supply of HTA in
prime area is expected to continue. Possibility of oversupply is slim in prime areas like Tsim Sha Tsui or
Wan Chai”
“New supply of high tariff hotels in prime location would be limited due to lack of suitable site from
either new bare land or redevelopment targets.” (Aug 2016)
19
Hong Kong Hotel Industry|September 2016
(3) Government Stance
◇ Government steps up to stimulate tourism industry covering hotel sector
Government takes supportive stance to boost tourism industry amid softening market condition as it
is an important sector in the economy which contributes about 5% of Hong Kong GDP.
According to 2016-17 budget announcement, government pledges HKD 380 million, an extra HKD
174 million more than previously estimated amount, for short- to medium-term measures aiming at
lifting tourism industry. The funds would be more dedicated toward utilizing city’s culture and
historical heritage to build up Hong Kong’s reputation as a tourist destination.
Short term measure costing HKD 140million includes waiving of licence fees for a year for 2,000
hotels and guesthouses, 1,800 travel agents and 27,000 restaurants.
For medium term, a total HKD 240 million would be allocated and the measures may cover
extending the scale of major events, exploring new visitor sources, publicity and marketing,
enriching the content of attractions and etc.
◇ Exploring short-haul markets would be more focused, while IVS policy may remain
unchanged
As the tourism market experienced difficult time last year and the scheme has not included any new
cities after 2007, there were some opinions to extend IVS to more cities.
However, government’s current stance is not to open up IVS to more cities in China. Instead,
government would focus more on overseas markets especially in short-hauls.
20
Hong Kong Hotel Industry|September 2016
2. Performance by Hotel Classification and Area
◇ Higher tariff hotels located in prime area would be stable and remain competitive
Given weak overall industry outlook, performances of hotels are expected to stay soft in the near future.
Nevertheless, performance may vary by hotel classification and area.
By classification, higher tariff hotels would be relatively stable in terms of occupancy rate and ADR
compared with lower classes.
HTA might be in better positions compared with HTB and MT as it depends less on mainland
Chinese guests. Overnight visitors excluding mainland Chinese are likely to remain steady without
any significant fluctuations under the forecast of global GDP growth. Average length of stays by
those visitors have been extended and may continue to remain steady. In addition, better
management and diversified source of revenue other than rooms such as F&B would support
revenue level and give more buffer under the soft tourism market.
On the other hand, MT would be affected the most from the decline of mainland Chinese given its
concentration of guest portfolio on them. Average staying days of mainland Chinese have been
lowered recently. Furthermore, revenue source is highly focused on room business. Thus, it is
relatively vulnerable to soft tourism condition.
By location, hotels in prime area are expected to remain competitive compared with hotels in non-
prime.
Hotels in prime locations with convenient transportation as well as immediate distance to major
conference venues or tourist attractions would be stable (i.e. Central, Wan Chai and Tsim Sha Tsui
etc.). Also, other than redevelopment projects, pure new supply in prime locations might be very
limited in the future due to lack of land for hotel sites. Thus, there is slim chance to encounter
oversupply.
While, hotels in non-prime locations might be less competitive to compete with hotels in prime
area during the market downturn. As majority of new supply is scheduled to enter in non-prime
area, it could face keen competition.
Overall, HTA hotels in prime locations would be competitive and better positioned given their
flexibility with management capability and diversified sources of revenue.
21
Hong Kong Hotel Industry|September 2016
< Comments from Various Major Property Consultants >
Hotel Tariff Classification
“Under the soft market, performance would be different by hotel. Hotels for low-end guests in far-
off areas would be suffered and restrain overall hotel performance, while HTA in core location may
be resilient.”
“HTA would remain stable overall considering large long haul guests and strong F&B sector.
However, MT might be weak due to decline in mainland Chinese visitors.”
(Aug 2016)
“New confirmed hotel projects with specific information on the completion are mostly for MT hotels,
while HTA hotels are estimated to account for less than 5% out of those projects in the next 3-4 years.
Thus, higher tariff hotels may largely remain steady and stay profitable.”
(Jan 2016)
Area
“Hotels in prime areas tend to perform better than those in the non-prime areas. Some prime areas
have their unique feature such as Wan Chai with the backing of Hong Kong Convention and Exhibition
Centre. There is less reliance on leisure guests visiting Hong Kong for shopping ”
“Higher tariff hotels in prime areas such as Central, Wan Chai and Tsim Sha Tsui would be stable,
while lower tariff in non-core area may face challenge.”
(Aug 2016)
Operation by International Brand
“We consider location first and then hotel management in a hotel project. Management capability is
important as it enables hotel to remain profitable during the downturn with sophisticated adjustments,
various promotions and better cost control.”
(Aug 2016)
Overall Industry Fundamental
“There is a little chance to see fundamental turnaround in the near term. However, China is trying to
keep GDP growth level and visitors from other countries may stay stable. Thus, hotel performance
may soften rather than see dramatic decline.”
(Aug 2016)
“Hotel industry was affected by weakened demand in 2015. However, hotel supply also grew very
slowly. Occupancy rate declined, but still stood at high level hovering around 85%. Occupancy rate
and room rate are expected to see mild corrections.”
(Jan 2016)
22
Hong Kong Hotel Industry|September 2016
3. Conclusion
◇ Overall industry environment might be soft, but higher tariff and prime locations are key
factors to remain competitive and keep relatively stable performance
Hotel industry in Hong Kong would be affected by anticipated soft demand under the tepid macro-
economic conditions. Decline in mainland Chinese visitors would be the main cause for weak demand.
Under the circumstance, HTA might remain competitive due to less concentration on mainland
Chinese guests with large proportion of long haul visitors. In addition, other stable source of revenue
such as F&B would provide buffer to cover unfavourable revenue from room sales in case of tourism
downturn to a certain extent.
Supply is expected to increase. However, majority of new completions would be scheduled to enter in
non-prime area, while prime area might account for small portion. Even, HTA projects in prime area
are estimated to be limited.
Overall, lower tariff hotels in non-prime locations might be comparably weak with possibility of
oversupply. However, HTA hotels in prime locations may maintain competitive and remain stable.
- End -
23
Hong Kong Hotel Industry|September 2016
Appendix
Hong Kong Map
(Source) Strategic Research Division (HK) of BTMU
Non-prime Locations: Hung Hom North Point Sha Tin Kwun Tong San Po Kong Yau Tong
Central Tsim Sha Tsui Mongkok Yaumatei Wan Chai Prime Locations: Sheung Wan
24
Hong Kong Hotel Industry|September 2016
Publisher:The Bank of Tokyo-Mitsubishi UFJ, Strategic Research Division (Corporate Research Office)
2-7-1, Marunouchi, Chiyoda-ku, Tokyo 100-8388, Japan
Contact details for inquiries : Kouichi Akimoto
(TEL:03-3240-5386、e-mail:kouichi_2_akimoto@mufg.jp)
This report is intended only for information purposes and is not intended to constitute an offer or solicitation to buy or sell securities or any other products. Contents of the report are information as at publish date and are subject to change without notice. This report has not been prepared to provide legal, taxational, financial, market-judgmental, or any other advises on propriety of any transactions. In taking any action, each reader is requested to act on the basis of his or her own judgment upon consulting certified lawyers, accountants or other professionals regarding the accuracy, validity and reliability of information appeared in this report. Bank of Tokyo-Mitsubishi UFJ is regulated by the Financial Services Authority. No part of this publication may be reproduced, stored in a retrieval system or transmitted without the prior written permission of The Bank of Tokyo-Mitsubishi UFJ Limited.
Copyright© 2016 The Bank of Tokyo-Mitsubishi UFJ, Ltd. All rights reserved.
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