It's a rich tourist's world: Luxury hotel occupancy rocketed to 79%

Average daily rate also increased.

As at YTD May 2014, occupancy for luxury hotels in Hong Kong was registered at 79%, a 4.7 percentage point y-o-y improvement.

According to a research report from JLL, meanwhile, the Average Daily Rate (ADR) increased by 4.8% y-o-y to HKD 3,779 resulting in strong Revenue per Available Room (RevPAR) growth of 11.4% y-o-y to HKD 2,986.

This indicates strong corporate and MICE visitation to the city.

The moving annual average for RevPAR was registered at HKD 2,847 in May 2014, driven by robust occupancy and ADR.

Here’s more from JLL:

12-Month Outlook: Despite headwinds facing some Asian economies, improvements in the United States and Europe bode well for corporate demand in Hong Kong although weak activity in the finance industry is likely to impact demand in the luxury hotel segment.

Leisure demand to Hong Kong continues to be supported by inbound tourism from Mainland China, although the Hong Kong government has voiced concerns about the strains that the rapid growth of tourism is having on its infrastructure.

Nevertheless, Hong Kong will remain a vibrant business and leisure hub as its hotel market continues to trade exceptionally well although the pace of growth witnessed since the global financial crisis is likely to slow.