Drop in Macau Luxury Hotel Rates Amid High Occupancy

In the first eight months of this year, the average cost for a night in a five-star hotel in Macau was recorded as MOP1,517.7 (US$189.3). This marks a significant decline of 5.5 percent compared to the same period last year. Despite the drop in room rates, the occupancy rate for these luxury accommodations soared to 94.9 percent, showcasing a rise of 3.1 percentage points. These statistics were released by the Macau Hotel Association, in conjunction with the Macao Government Tourism Office.

By August, the Association encompassed 48 hotels, with 27 of these classified as five-star properties. These establishments predominantly reside within casino resort complexes throughout the city. The remainder of the Association's members fall within the four-star and three-star categories. The impressive performance within the five-star category reflects a robust demand for luxury accommodation despite a reduction in prices.

Trends and Changes in Room Rates

The decline in the average nightly cost of five-star hotel accommodation in Macau has been consistent, continuing for the 14th consecutive month as of August. This steady reduction can be seen as a response to various market dynamics influencing room pricing strategies among hoteliers. The rates for July and August were MOP1,518.5 and MOP1,615.5 respectively, each reflecting a decline of about 2 percent compared to the corresponding months in the previous year.

The occupancy rates, however, remained high, at 95.7 percent in July and slightly rising to 96.8 percent in August. Such figures suggest that while hotel prices are dropping, demand and usage of these accommodations continue to remain robust.

Hotel Room Availability and Market Share

Macau's luxury hotels command a significant share of the city's hotel market. As of August, there were 26,200 five-star hotel rooms available, making up nearly 60 percent of the total 44,000 hotel rooms. This number signifies a 1.5 percent increase in the count of five-star rooms from the prior year, according to the latest data from the city’s Statistics and Census Service. The city's hotel market continues to evolve, with the luxury sector remaining a dominant force.

The continual expansion and investment into five-star accommodations indicate a sustained confidence in the market's ability to attract high-spending visitors. The current trend of declining room rates contrasts with increasing room availability and high occupancy levels, illustrating an intriguing dynamic in Macau's luxury hospitality scene.

Source: Macau 5-star room cost average down 5.5pct y-o-y for January to August, at US$189: trade, GGRAsia, October 8, 2025.

Posted by Wizard
Oct 08 2025