HK Hotel Industry Analysis

Hong Kong's Hotel Industry is Recovering

With the reopening of borders, Hong Kong's tourism industry should recover. Surprisingly, while airlines such as Cathay Pacific (293.HK) have profited from this, it is mostly due to Hong Kong residents travelling abroad. The number of inbound tourists has not recovered as quickly as expected. As a result, the share prices of many hotel stocks are still 35% to 66% below their pre-pandemic levels of 2019, and their valuations are significantly low.