Hongkong and Shanghai Hotels occupancy, room revenue diveBusiness | 14 May 2020 2:03 pm
Hongkong and Shanghai Hotels (0045) said occupancy rate in Hong Kong dived by 56 percentage points year-on-year to 14 percent in the first quarter, the worst performer among all regions.
On a quarterly basis, the local occupancy rate fell by 22 percentage points.
The first-quarter average room rate in Hong Kong dropped by 26.6 percent to HK$4,395 from a year ago or 8.8 percent quarter-on-quarter. Revenue per available room in Hong Kong slumped by 85.2 percent year-on-year, or 64.06 percent quarter-on-quarter to HK$616.
In the Hong Kong residential leasing sector, occupancy at the Repulse Bay Complex fell by 3 percent year-on-year.
Rents in the luxury sector in Hong Kong remain under pressure although the outlook is stable for the rest of the year, it said.
The shopping arcades in The Peninsula Hotels, The Peak Tower and The Repulse Bay continue to attract high-quality tenants, however, the market has been negatively impacted and yield declined by one percentage point year-on-year.
Yield from its office leasing has remained stable with occupancy remaining flat at 95 percent. "We are hopeful that the spread of the coronavirus will be brought under control in the next few months and the impact on the travel trade will gradually recede.