Hong Kong hotel sector recovery elusive for unprepared investors

Signs of recovery in Hong Kong’s real estate industry are becoming more apparent, so much so that key indicators in parts of the sector are experiencing some of the fastest growth rates in the Asia-Pacific.In the hotel market, average daily rates, which were declining in annualised terms for most of 2025, grew 9.5 per cent in the first half of this year. This was the third-fastest growth rate among 14 leading markets across the region, according to data from CBRE.Another sign that the recovery has taken hold is the sharp increase in tourist arrivals which, according to a report by Citigroup on July 21, are expected to reach 55 million this year. This would be almost on par with the number of visitors in 2019, although still significantly below the 65 million in 2018, just before Hong Kong suffered a succession of domestic and external shocks.