STR's preliminary August 2019 data for hotels in
Hong Kong indicates all-time low occupancy levels amid ongoing
and often violent protests in the city.
Based on daily data from the month,
hotels in Hong
Kong reported the following in year-on-year comparisons:
- Supply: +1.5%
- Demand: -28.8%
Occupancy: -29.8% to 63.9%
- ADR: -21%
- RevPAR: -44.6% to
The absolute occupancy level is the lowest for
any month in STRís Hong Kong historical database.
Hong Kong's Financial Secretary Paul Chan, has
said that tourist arrivals to the city fell
nearly 40% in August after a roughly 5% decrease in July.
After a prolonged period of overall performance
growth, July was the first month that showed some of the protest impact on
hotel performance with the key metrics down across the board:
occupancy (-4.2%), ADR (-7.9%) and RevPAR (-11.8%).
In mid-August, STR forecast a 19.3% RevPAR
decrease for Hong Kong for Q3 2019.
According to STR analysts, the
market experienced 19 consecutive months of RevPAR declines
following protests in 2014, and there has not been sufficient time
between protest periods for the market to reach pre-2014 levels.
especially if they grow more violent and target infrastructure
such as transport and the airport, could worsen Q3 2019