Hong Kong’s hotel industry continues to thrive, as it recovers strongly from a relatively poor year in 2016.

According to the latest monthly data from STR, the city recorded an average occupancy of 89.1% in July 2017, up 3.1% compared to the same month last year. This followed a 6.6% increase in demand for rooms in the city, which is partially being driven by a rebound in visitation from mainland China.

This rising demand is also enabling hoteliers to increase their rates; Hong Kong’s average daily rate (ADR) climbed 6.1% to HK$1,213.87 (approx. US$155) in July, while revenue per available room (revPAR) jumped 9.4% to HK$1,081.14.

These figures significantly exceed the Asia Pacific averages of 69.1% occupancy and US$100 ADR for the first six months of 2017.

Statistics from the Hong Kong Tourism Board showed that visitor arrivals from mainland China increased 2.3% in the first half of the year, following a downturn in 2016.