The potential re-introduction of regular travel between Hong Kong and Mainland China provides optimism for the recovery of the Hong Kong hotel market after 12 months of unrest, according to a new report by Colliers International.
According to Unprecedented times to explore hotel opportunities, while efforts have been made to create a ‘staycation’ market, 12-months of disruption has seen COVID-19 compound the negative impact of social unrest.
However, Colliers International Senior Director for Capital Markets, Shaman Chellaram, told WILLIAMS MEDIA the potential re-introduction of regular travel between Hong Kong and Mainland China provided optimism for recovery as pre-COVID-19 figures demonstrated cross-border travel contributed to 80 per cent of the city’s inbound tourism.
"Uncertainty in the market is creating the potential for owners, investors and private families to consider their position in the sector." he said.
Colliers Senior Manager of Valuation and Advisory Services, Pureanae Jang, said although Hong Kong would recover, the uncertainty of the timeframe would be a major factor in the decision-making process.
She added that now could be a good time for independent hotel owners and operators to reposition assets, especially if they own ageing stock.
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