Citing official tourism data, JLL said luxury properties were the only hotel segment to return to 2018 average daily rates in 2025, reaching HKD2,169 (US$277). The figure was 1% higher than rates recorded before 2019 and during the Covid-19 pandemic.
By comparison, the overall hotel market in Hong Kong recorded an average daily rates of HKD1,263, 8% lower than the 2018 level, the data showed.
Meanwhile, official figures obtained by investment management firm Colliers showed that luxury hotels continued their strong performance in the first quarter of this year.
The Peninsula Hong Kong. Photo courtesy of the hotel |
Average daily rates rose 12.3% year-on-year to HKD2,452, while non-luxury segments posted increases ranging from 7% to 8.7%.
“Hong Kong’s luxury segment was identified as a relative winner because its trading recovery in 2025 was stronger than that of the broader hotel market,” said Cleavon Tan, senior vice-president of JLL’s Hotels and Hospitality Group in Hong Kong, as reported by the South China Morning Post.
“Improving mainland Chinese, long-haul, corporate and event-related demand coincided with a highly constrained supply environment, allowing well-located luxury hotels to rebuild occupancy while retaining pricing power.”
Tan said Hong Kong’s hotel recovery and long-term growth outlook would be “segment- and asset-specific.”
“Luxury hotels may see slower physical-supply growth but potentially stronger pricing power, while selected mid-market hotels may capture broader visitor growth where their location, product and cost structure remain competitive,” he added.
JLL’s report noted that demand for luxury hotels across the Asia-Pacific region had also increased significantly, driving hotel transaction volumes, including sales and acquisitions, up 77% between 2017 and 2025 to about US$2.1 billion.
Luxury hotel transactions accounted for nearly 20% of all hotel deals in the region in 2025, rising from 8% in 2017 and exceeding the previous pre-pandemic peak of 16%.
In Hong Kong, prime luxury hotel assets remain tightly held by local conglomerates, family offices, long-term strategic owners and high-net-worth investors, keeping supply limited.
Recent market activity has focused mainly on refurbishments, repositioning projects and reopenings rather than adding new supply, JLL said.
The consultancy highlighted the 2023 return of The Regent in Hong Kong, the launch of Mondrian Hong Kong, the upcoming Andaz Hong Kong Central, and the recent reopening of The Landmark Mandarin Oriental.
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