The Peninsula Hong Kong is focusing on luxury retail, fine dining and high-end services to attract both local and international guests amid a surge in new hotel openings in the city and competing lodging options in neighbouring Shenzhen.
The Peninsula saw its occupancy rise by double digits year on year, even as its average room price per night fell 27 per cent, according to operator Hongkong and Shanghai Hotels’ (HSH) half-year earnings report.
However, the hotel was seeing “a lot of competition rising in Shenzhen”, said Benjamin Vuchot, the group’s new CEO, noting that it was often easier and more economical for travellers from mainland China to book a room in Shenzhen and make a day trip to Hong Kong.
Developers Wharf Holdings and CK Asset Holdings, both of which have interests in the hotel sector, echoed the sentiment, saying recently that the local operating environment remained challenging. Cautious spending continued to suppress room rates, despite an increase in visitor arrivals and overnight stays in the first half of this year.
Visitors to the city increased 11.7 per cent in the first six months compared to the same period last year, reaching 23.64 million – 75 per cent of whom were from the mainland, according to the Hong Kong Tourism Board. Overnight visitors rose 7 per cent to 11.28 million.
Amid the difficult environment, Vuchot said that the Peninsula’s premium catering and retail offerings had become especially crucial.
