The average room rate last year was HK$1,760, up 19 per cent from HK$1,470 in 2010.

Despite the hotel market being clouded by the slowdown in the mainland economy, he said the hotel had a balanced mix of guests that would offset the impact. 'We haven't found hotel rental income has been affected and visitor arrivals to Hong Kong have increased 15 per cent in the first quarter,' he added.

'And the growth in visitor arrivals is expected to continue.'

Figures by the Hong Kong Tourism Board showed that visitor arrivals exceeded 11.22 million in the first quarter.

The company will open a new hotel in Jaffe Road in Wan Chai at the end of this year.

It will be operated under the brand name of 'Mira Moon' and will offers a total of 91 guest rooms.

In the retail sector, the refurbishment of 'Mira Mall', the retail portion of The Mira, was completed in the fourth quarter of last year.

The occupancy rate of the retail space has reached 80 per cent, while the Miramar Shopping Centre is fully occupied.

Mira Mall has introduced several luxury brands including Coach and Tommy Hilfiger as retail tenants.

The group believes the opening of new stores will become another momentum for growth in rental income.

Lee said retail rents have surged sharply and would continue to increase.

He expects the rents of its retail portfolio will have a double-digit growth this year.

Shares in Miramar Hotel gained 0.63 per cent to close at HK$8.31 yesterday.

$2,000

The average room rate, in Hong Kong dollars, of The Mira hotel in Tsim Sha Tsui, up from HK$1,760 a year ago and HK$1,470 in 2010