Market Trends of Hospitality Industry in Hong Kong
This section covers the major market trends shaping the Hong Kong Hospitality Market according to our research experts:
The Competition between Domestically Grown and International Brands is Influencing the Supply Dynamics
The hospitality industry in Hong Kong is a combination of domestically grown brands and chain hotels and international brands and their chain hotels. According to the latest release by the Home Affairs Department of Hong Kong, the country has 299 registered hotels that belong to different hotel brands and market segments constituting 186 chain hotel properties that are spread across the country. The international brands and their chain hotels are occupying 57% of the total hotel properties whereas the domestically grown hotels constitute for 43% of the total hotel properties. Though the domestically grown brands and their hotel chains are occupying less share of the market in terms of total hotel properties, they are adding a high number to the total rooms/keys to the supply.
The Mid- and Upper Mid-scale Segment Hotels are Dominating the Market
The Mid and Upper Mid-scale hotel segment is dominating the market with around 79% of total registered hotels belongs to that category followed by approximately 18% of luxury hotels. The budget and economy segment hotels constitute just 0.1% of the total indicating the negligible demand for them. Though most chains of both international and domestic brands are less focusing on the budget and economy segment, the segment is largely covered by the individual hotel properties.
