• Greater China’s hotel market to face more challenges but continual growth is expected

    15 December 2017

    (14 December 2017, Hong Kong) Knight Frank today published Greater China Hotel Report 2017 that provides in-depth analysis and forecasts for the region’s hotel market.

    (中文简体版请按此

    In 2016, with a rise in household income, domestic tourists continued to dominate the country’s tourism sector. Domestic visitor arrivals grew 11% year on year (YoY), accounting for over 97% of total visitor arrivals. The overall number of international visitors also rose, but by a modest 3.8% YoY, reaching 138 million, of them 59.27 million were overnight visitors, up 4.2% YoY.

    Among the six cities covered in this report, Shanghai led in terms of supply, adding over 2,000 five-star hotel rooms in 2016, followed by Macau with about 1,200 and Beijing with over 500. However, by mid-2017, Beijing continued to have the largest stock of five-star hotel rooms among the six cities, with about 39,000.

    In the first half of 2017, Beijing recorded the most notable Average Daily Rate (ADR) growth among the six cities, gaining 4.7% YoY, thanks to robust business and conference activity and flourishing domestic tourism, while the ADR in Shanghai and Guangzhou remained stable. In Hong Kong, Macau and Taipei, the ADR fell 4-6% YoY amid a slowdown in the tourism and gaming industries. However, Hong Kong’s ADR remained the highest among the six cities, reaching US$260, followed by Macau at around US$200 and Taipei at around US$150.

    China’s hotel market has faced increasing challenges and competition among local and international hotel operators because of increased room supply. However, the market is set to continue to grow, supported by domestic tourism in the medium to long term. We expect international hotel operators to continue to expand in China’s hospitality market.

    David Ji, Director, Head of Research & Consultancy of Greater China at Knight Frank, says, “China’s initiatives such as the Belt and Road and Greater Bay Area, coupled with the growing disposable income of the country’s middle class, are expected to steadily boost demand for five-star hotels in the country.

     

     

     

    Video

    Build4Asia x RACE 2023 Event Highlights


    ARCHIDEX 2023: A Spectacular Journey of Architecture Inspiration and Innovation!

     
    Gallery

    no images were found