Macau Hotel Prices Fall 4.7% in December Despite Tourism Boom

In December, Macau saw a notable drop in average hotel prices, despite robust tourism and high occupancy across accommodation options. Recent statistics reveal a 4.7% decline in market-wide hotel rates, with five-star properties seeing the steepest drops. Three-star and four-star hotels also reported lower pricing during this period.

This trend unfolded as the SAR welcomed over 3.58 million visitors, driven by strong same-day arrivals and overnight stays. December also recorded the highest revenue since the COVID-19 pandemic.

December Macau Hotel Pricing Trends

Data from the hotel association revealed that five-star hotels experienced the most significant monthly price drop, with room rates declining 6.2% year-on-year to approximately MOP1,391. Three-star hotels saw a notable 6.4% decrease, averaging around MOP949. Meanwhile, four-star establishments reported a smaller 3.6% decline, with rates averaging at MOP1,131.

Despite these reductions, occupancy rates remained strong across all categories. High-end properties saw only a slight 0.6% drop, but they were still below pre-pandemic levels. Three-star hotels maintained nearly full occupancy at 97%, while four-star venues recorded a larger 1.6% decrease. Still, they exceeded 90% occupancy during the month.

Five-Star Accommodation Surge

By late 2025, five-star accommodations accounted for nearly 60% of Macau’s hotel room supply. Government tourism data supported these findings, showing occupancy in approximately 26,000 five-star rooms out of a total of 43,800. This marked a 5.4% increase from the previous year, mainly due to the prevalence of high-end properties within integrated resort complexes.

In December, tourist arrivals reached 3.58 million, representing robust annual growth of 17.8%. Same-day visitors surged by 23% to 2.1 million, while overnight travelers rose by 10.9% to 1.47 million. For the entire year, total visitation hit 40.06 million, a 14.7% increase from the prior year.

Notably, Macau’s gross gaming revenue for December reached MOP20.89 billion, representing a 14.8% year-on-year increase. This marked the strongest gaming performance in December since pandemic restrictions were lifted.

Competitive Dynamics in Macau’s Hotel Market

Despite lower pricing, Macau’s hotel market has sustained high occupancy levels, driven mainly by substantial inbound tourism from mainland China.

The diverse lodging options cater to different needs across supply segments. The five-star category holds a significant share of the overall inventory and is closely linked to gaming results.

Analysts equate the combination of nearly full hotels, higher visitor numbers, and reduced average room rates to a competitive environment among operations as they adapt to post-pandemic travel trends.