•Ongoing sociopolitical unrest saw visitor arrivals fall to 55.9 million in 2019, a decline of -14.2% yoy.

•The decline in visitor arrivals weighed on citywide hotel performance during the period.

•Citywide occupancy fell to 78.90% from 91.4% last year. RevPAR performance deteriorated sharply in all segments while ADR also declined across the board.

•A total of 15 new hotels were completed in 2019, adding over 3,000 new rooms to citywide supply. Major new openings in H2 2019 included K11 Artus (287 keys) and ALVA Hotel by Royal (618 keys).

•The 2020-21 Budget included several new measures intended to help the tourism industry recover from ongoing sociopolitical unrest and the COVID-19 outbreak.

•Hotel investment activity remained quiet in H2 2019, with just a few small and medium sized assets changing hands.

•The COVID-19 outbreak, sociopolitical unrest and sizable new supply due for completion in 2020 will exert further pressure on hotel performance this year.