•Visitor arrivals rose to 30.61 million in H1 2018, an increase of +10.1% y-o-y.

•Citywide occupancy rose by 400 bps to 91%, supported by growth in visitor arrivals and the lack of new hotel supply, with just 1,000 rooms added to the market.

•Room Nights Sold increased by +7.89% y-o-y while Room Nights Available (RNA) increased by +3.71% y-o-y.

•RevPAR performance was strong across different segments, with High Tariff A hotels recording growth of +10.7% y-o-y, High Tariff B +15.5% y-o-y and Medium Tariff +19% y-o-y.

•The Hong Kong Tourism Board (HKTB) continues to work towards its 2017 Development Blueprint objectives. These include developing new attractions and tourism products for a diversified portfolio of visitor source markets.

•Hotel investment activity weakened in H1 2018, with just a few small and medium sized assets changing hands. Several assets were up for sale but high prices deterred most investors.

•Strong hotel performance resulted in the stabilisation of yields.