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Cheryl Arcibal

Hong Kong’s luxury hotels have outpaced the city’s broader hospitality market since last year, with their room rates exceeding 2018 levels as demand recovers, according to a report by global property consultancy Jones Lang LaSalle (JLL).
Citing official tourism figures, JLL said high-end properties were the only segment that returned to 2018’s average daily rates (ADRs) in 2025, hitting HK$2,169 (US$277) – an increase of 1 per cent from what they were charging before 2019 and during the Covid-19 pandemic.
In comparison, the city’s overall hotel market saw its ADR stand at HK$1,263, down 8 per cent from 2018, the figures showed.
Meanwhile, official figures obtained by investment-management firm Colliers indicated that the strong performance of luxury hotels continued into the first quarter of this year, with the ADR rising by 12.3 per cent to HK$2,452, while the non-luxury segments saw increases of between 7 and 8.7 per cent from 12 months ago.
“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. “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.”
Luxury hotels may see slower physical-supply growth but potentially stronger pricing power
Cleavon Tan, JLL’s Hotels and Hospitality Group
Tan expected that the city’s hotel recovery and growth would be “segment- and asset-specific” over the long term.
“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 grown dramatically, pushing transaction volumes – including sales and acquisitions – up 77 per cent between 2017 and 2025, to about US$2.1 billion.
Luxury-hotel transactions were said to have accounted for almost 20 per cent of all hotel deals in the region in 2025, surging from 8 per cent in 2017 and surpassing the 16 per cent achieved during the pre-pandemic high.
“This represents one of the highest annual investment deployments into the sector since the pre-Covid period, when transaction volumes exceeded US$2.4 billion in 2019,” JLL’s report said.
In Hong Kong, prime luxury assets remain tightly held by local conglomerates, family offices, long-term strategic owners and high-net-worth capital, leaving supply constrained.
Recent market activity is generally geared towards refurbishments, repositionings or reopenings rather than incremental supply, JLL added. It pointed to 2023’s return of The Regent in Hong Kong, the addition of the Mondrian Hong Kong, the upcoming Andaz Hong Kong Central, and The Landmark Mandarin Oriental’s recent reopening.


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Robust demand spurs investment activities in the luxury-hotel segment, and transactions have seen strong growth across the Asia-Pacific region since 2017


Robust demand spurs investment activities in the luxury-hotel segment, and transactions have seen strong growth across the Asia-Pacific region since 2017.


At high-end Hong Kong hotels, rates check in above pre-pandemic highs, outpace market

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Robust demand spurs investment activities in the luxury-hotel segment, and transactions have seen strong growth across the Asia-Pacific region since 2017

Robust demand spurs investment activities in the luxury-hotel segment, and transactions have seen strong growth across the Asia-Pacific region since 2017