Quarantine Hotel Demand Is Booming By 511%, 50 Hotels Increased Their Prices (Some By Over 50%)

The Hong Kong government recently released its list of the eighth cycle of Designated Quarantine Hotels (DQHs), which will run from August 1 till October 31, 2022. All over the city, around 23,000 rooms across 62 hotels are available for international arrivals for a compulsory isolation period, after they enter the city.

Hong Kong social media groups were abuzz with posts about how the room rates had increased exponentially between the current seventh cycle (which runs till July 31) and the upcoming eighth cycle. The HK HUB compared the cost for non-suite rooms for a single occupant offered by quarantine hotels since the fourth cycle (which ran from June 20 till August 31, 2021) and the eighth cycle, and yes, prices are on the rise.

Interest increased by 511% since May 2021

The release of the 8th cycle list was a crushing blow for those who were hoping that the mandatory quarantine in designated hotels would be lifted. The situation has been uncertain since 2020, with the social distancing measures and the compulsory quarantine in designated quarantine hotels, pushing people to leave Hong Kong, while others were stuck abroad due to bans on flights from several countries.

Since April 1, the ban has been lifted and the quarantine period in DQHs reduced from 14 days to 7 days, while since May 1, non-residents and tourists can enter the city, resulting in a higher demand on quarantine hotels. Travel back to Hong Kong is a hassle, and despite the fact that new hotels and rooms were added in February and May, the demand is extremely high, causing issues for people to find a quarantine hotel.

There are no official data about the demand itself, but we can have some insights by looking at how people search for specific keywords using the Keyword Planner, a tool provided by Google that shows estimations of monthly searches in Google Search. Results are astonishing: worldwide, the number of people searching for the keyword “quarantine hotel hong kong” increased by 511% between May 2021 and May 2022, jumping from 9,900 to 60,500 monthly searches in a year.

When it comes to searching in Google, people can use various types of keywords. Therefore, this number is most likely underestimated compared to the actual demand. Indeed, looking at the total volume of searches for keywords related to “quarantine hotel hong kong” (469 different terms), the tools reports that 206,300 searches were performed in May 2022, an increase of 30% compared to April.

Google Trends can also be used to understand more about the demand (click here). According to the latest charts, the interest for quarantine hotels in the city has never been this high. All charts show a higher interest since March and April 2022, when the government announced the reduction of the quarantine period and the opening of the borders to non-residents.

Quarantine hotels prices are up 26% on average

A quarantine in Hong Kong is a financial burden for solo-travellers and families, without mentioning the increasing airline tickets. When it comes to the hotel cost, inflation is obvious. Out of 69 hotels available across during the cycles, 50 have increased their prices for single non-suite rooms, by an average of 25%.

Looking at the data* (click here) for non-suite rooms for one guest between the 4th and 8th cycle, the cost per night has increased each cycle by 4.5-8.5% for most of the hotels.

The following table lists the top ten hotels that upped their prices the most for this room type:

These increases extend to other room types as well. For instance, the cost for Club Suite (Double) at JEN Hong Kong by Shangri-La increased by 76.41%, from $2,238 to $3,948 per night; the cost for a Presidential Suite with 3 bedrooms and a kitchenette at Regal Airport Hotel increased by 47.5%, from $28,800 to $42,500 per night, from the 6th and 8th cycle.

There have been reductions in room rates for single non-suite rooms, albeit only in four hotels.

Twelve quarantine hotels haven’t increased for the analysed rooms: Metropark Hotel Kowloon, Silka Tsuen Wan, Rambler Garden Hotel, iclub Ma Tau Wai Hotel (standard 13.2 – 18.7 sq.m rooms), Regala Skycity Hotel, OZO Wesley, Regal Kowloon Hotel, Royal Pacific Hotel & Towers, Crowne Plaza Hong Kong Kowloon East, One-Eight-One Hotel & Serviced Residences, Sheraton Hong Kong Hotel and Towers.

To access the full comparative table, click here.

_{* Methodology : The cost for non-suite rooms (single guest) has been taken from the official government website (4th cycle – 5th cycle – 6th cycle – 7th cycle – 8th cycle). The room name is displayed in column B. Some hotels seem to have opened different types of rooms during the sixth cycle (ie. Dorsett Kwun Tong, and iclub Ma Tau Wai Hotel); two entries have been created. Some room names have changed between the cycles, and in this case we have considered the rooms the same if the size is the same.}

Header image credits: Geckophotos via Canva