Local residents celebrating their wedding anniversaries compete with overseas celebrities, royalty and heads of state for the pleasure of staying in the hotel's luxurious presidential suite - the city's most expensive at HK$87,000 a night.

These are just some signs of the buoyancy of Hong Kong's economy and its hospitality sector.

Economists and hoteliers believe the splurges reflect a 'feel good' factor and wealth effect as the city's stock market posts fresh records and its residents see the lowest unemployment rate in 10 years and enjoy pay rises.

Increased corporate travelling to and from the mainland through Hong Kong and a growing number of leisure travellers in the city are also fuelling the local hospitality business.

'Spenders have increasingly loosened their belts since Christmas,' said Citigroup senior economist Joe Lo. 'The city is prospering again and the mood is very vibrant.'

Mr Lo expects the government to announce a growth rate of slightly above 6 per cent when it reveals its full-year economic growth forecast next month.

A barometer of economic booms and busts, Hong Kong hotels are bracing for yet another banner year on the back of sustainable economic growth and after possibly their best year ever last year.

Langham Hotels International, the hospitality subsidiary of property investor Great Eagle Holdings, recorded brisk trade in food catering and accommodation at its three hotels - the four-star Eaton Hotel on Nathan Road and the five-star Langham hotels in Mong Kok and Tsim Sha Tsui, sales and marketing vice-president Brett Butcher said.

Sales at Langham restaurants had risen 25 per cent so far this year with about 65 per cent of diners local people, he said. Revenue on a same-room basis had also grown 25 per cent year to date, helped by a 20 per cent rise in room rates, he said.

'The figures tell you how robust the market is,' Mr Butcher said. 'Our Tsim Sha Tsui hotel last year had its best year since it opened in 1991 and the signs point to a banner year this year.'

The 495-room Langham Hotel in Tsim Sha Tsui charges US$200 for a guest room a night or 10 per cent higher than the average of the 665-room Langham Place Hotel which opened in 2005.

Stronger demand also helped the InterContinental on the Tsim Sha Tsui waterfront lift its average room rate 18 per cent this year, marketing director Trevor Owen said.

'The leisure market is strong. We've got many tour groups from the US, [Britain] and Japan,' he said. 'There is 20 per cent growth in mainland visitors [at the InterContinental] so far this year, though the base of comparison is small.'

Mr Butcher said the majority of Langham guests came from non-mainland markets such as Europe, the United States and Australia, dismissing the myth that mainland visitors were inundating local hotels.

'Most mainland visitors come to Hong Kong for day trips and shopping,' he said. 'And many hotels don't get much trade from them.'

Some hoteliers found many mainland guests preferred spending on shopping and dining to accommodation. This is supported by anecdotal evidence in three three-star hotels of Far East Consortium International, a hotel operator and property developer.

Far East chief financial officer Bill Mok Kwai-pui said the 700 rooms at the group's hotels in Kowloon were 96 per cent to 99 per cent filled for the most of last year, with the number of guests equally split among the mainland, Europe and the United States.

Across Victoria Harbour, Far East's two four-star hotels - the 142-room Cosmopolitan in Wan Chai and the 162-room Lan Kwai Fong boutique hotel in Central - were 90 per cent to 94 per cent occupied on the average. They charged an average of HK$700 to HK$800 a room night that went as high as HK$1,200 at some busy times.

'The market is unbelievably strong,' he said. 'We have many long-haul travellers as guests, not just mainland visitors.'

Given the growing number of exhibitions held in Hong Kong and mainlanders visiting the city, the buoyancy of the tourism and hospitality sector would be sustained for the rest of this year, Mr Mok said. He expected 'double-digit' growth in gross operating profits of the group's hotels this year.

Still, behind the buoyancy hide risks of a possible downturn.

'The stock market perhaps is consolidating but it is one of many factors affecting the economy,' Mr Butcher said. 'I don't see the stock market falling severely.'