Tourism, student housing to give Hong Kong’s hotel assets a bump, experts say

Tourist arrivals, which jumped by a third to 44.5 million in 2024, are likely to sustain its momentum as the government rolls out programmes to boost its role in the economy. The city is also facing a shortfall in student beds, fuelling demand for hotel conversion projects into student accommodation.

The hospitality sector is expected to contribute 5 per cent to the city’s economic growth by 2029 from 2.6 per cent in 2023, returning its significance last seen in 2018. In a blueprint unveiled in December, Hong Kong is seeking a HK$120 billion (US$15.4 billion) boost to the economy with 65,000 new jobs in the next five years.

“The hotel sector is poised for a promising year ahead,” said Shaman Chellaram, senior director for Asia in valuation and advisory services at Colliers. “Occupancy rates are also expected to improve,” he added, given the coming events including the Lunar New Year fireworks, the Rugby Sevens tournament in March and the Coldplay concert in April.

The proposed 23-storey hotel will offer eight suites and 91 rooms, plus a commercial complex with a gross floor area of about 138,000 sq ft of retail shops, restaurants and banquet halls, according to a Miramar filing to the Hong Kong stock exchange last week.