STR said Hong Kong hotels logged year-over-year increases in performance metrics for March, thanks to significant demand growth.

Supply and demand in the sector were up 1.1% and 8.3% in the period, respectively. Also in the comparable period, occupancy increased 7.1% to 89.8%; average daily rate stood at HK$1,406.54, up 1.8%; and RevPAR was HK$1,262.77, an increase of 9.0%.

A number of Hong Kong events likely contributed to the rise in demand, including the Hong Kong International Jewellery Show held March 2 to March 6 and the Art Basel Hong Kong from March 20 to March 26, according to STR.

The recorded March RevPAR year-over-year increase was the highest in any month since February 2012, and STR believes that the special administrative region's hotel market is beginning to show signs of recovery.