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December 18, 2017

Continual growth is expected for Greater China's hotel market
Knight Frank recently published Greater China Hotel Report 2017 that provides analysis and forecasts for the region’s hotel market. 
     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.
     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.

 


The Parisian, a new 3000-room resort hotel opened in Macau  

 

 





 







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