SINGAPORE: Latest evidence on the impact of Hong Kong’s protest movement on hotel performance in the city has emerged with updated figures from STR.
After a prolonged period of overall performance growth, July hotel performance saw key metrics tumble across the board: occupancy was down 4.2%, average daily rate (ADR) slumped 7.9% and RevPAR dipped 11.8%.
August accelerated the downward trend. STR's preliminary data for hotels in August reveals all-time low occupancy levels amid ongoing protests.
Based on daily data from the month, Hong Kong reported the following in year-over-year comparisons:
• Supply: +1.5%
• Demand: -28.8%
• Occupancy: -29.8% to 63.9%
• ADR: -21.0% to HKD1,086.16 (US$138.8)
• Revenue per available room (RevPAR): -44.6% to HKD694.15 (US$88.6)
The absolute occupancy level is the lowest for any month in STR’s Hong Kong historical database.
According to Hong Kong financial secretary Paul Chan, tourist arrivals to the city fell nearly 40% in August after a roughly 5% decrease in July.
STR says prolonged protests could worsen Q3 performance significantly through final August numbers and softer-than-anticipated September results.