Hotel stays in Hong Kong to cost more as Excelsior’s closure will tighten supply by nearly 1,000 rooms
Occupancy rates of properties in Wan Chai and Causeway Bay will immediately surge by at least 6 per cent when the Excelsior closes in March, says Colliers
Overall hotel occupancy in Wan Chai and Causeway Bay will immediately surge by at least 6 per cent, and 2.1 per cent on Hong Kong Island, said Hannah Jeong, senior director of valuation and advisory in Asia at Colliers.
“As the 869-room Excelsior contributes 7.8 per cent of total rooms available in that district, the impact would be [really great] based on the current strong recovery of tourism market in Hong Kong,” Jeong said.
Travellers could end up paying more for accommodation as competitors such as Pullman and Regal Hotel in the district adjust their room rate upwards.
JLL expects visitor numbers to rise because of the upcoming completion of the Hong Kong-Zhuhai-Macau bridge and Guangzhou-Shenzhen-Hong Kong Express Rail Link, which will boost demand for hotels.
It also expects hotel revenue growth to continue through the year, with Hong Kong recording the highest revenue growth per room among major hotel markets in Asia for this year, estimated to be more than 10 per cent.
