ASIA Travel Tips.com

 

Chinese Hotel Industry needs Olympic Boost

Search ASIA Travel Tips .com Latest Travel News Send to Friend Thursday, 7 August 2008

The Chinese hotel industry has experienced nationwide declines in RevPAR (room yield) through the first six months of 2008, according to STR Global's monthly survey of 528 internationally branded Chinese hotel properties. Several major markets have experienced occupancy declines as new hotel openings have stretched demand. With the world watching China for the 2008 Olympic Games in August, expectations are high for a strong second half performance.

Chinese national occupancy fell 6.9% in the first half of 2008 to 60.8%. Average daily rate increased 2.3% to CNY 936.23 (US$133.31). These metrics led to a 4.8-percent decline in revenue per available room.

"The Chinese hotel industry has thus far faced a year of significant challenges ranging from natural disaster to an uncertain global economy," said James Chappell, managing director of STR Global. "However, with the twenty ninth Olympiad in Beijing only a day away, the Chinese hotel industry will be looking to the event to provide the profits in 2008."

Locally, Chinese market performance is also down. In Beijing, new hotel openings and lighter than expected pre-Olympic demand have caused occupancy to drop 10.7% to 61.8%. However, a 7.6% boost in rates has helped offset this. Year-to-date ADR is CNY 964.48 (US$137.51) and RevPAR is down 3.9%.

In Shanghai, occupancy has also fallen by 8.5% to 59.1%. To compound this, rates have also fallen slightly, by 1.6%. Year-to-date ADR in Shanghai is CNY 1023.72 (US$145.91). Shanghai showed the poorest year-over-year RevPAR change among major Chinese cities, a 10% drop.

According to STR performance in Hong Kong was flat. Occupancy was down 0.8% at 80.6%, the highest in STR's Chinese survey. Rates increased 1.5% to reach CNY 1470.68 (US$209.27) also the highest. RevPAR increased marginally, by 0.7%.

The 12 May 2008 earthquake in Chengdu, Sichuan Province rattled the hotel industry there. Year-to-date, occupancy is down by 22.6% to 52%. Rates increased by a substantial 22.5% to cover the gap. Rates have reached 612.32 CNY (US$87.08) and RevPAR has decreased by 5.2%.

"Many of the new hotels in Northern China were developed specifically to meet the needs of the Olympics," added Mr. Chappell. "It will be interesting to see if Chinese markets can adapt to the new supply levels when the Games move on."

See other recent news regarding: Airlines, Aviation, Flights, HotelsPromotions, New Hotels, Olympics, Beijing, Research, Survey, STR Global

Subscribe to our Latest Travel News Daily Email Free of Charge by simply entering your email address above, or return to the Latest Travel News Asia main page to see all the latest headlines. You can also stay updated with our RSS Feed Free Travel News RSS Feed and even add the travel news to your website. Have questions? Please read our travel news FAQ.
     
Exclusive HD video interview with the General Manager of The Ritz-Carlton, Bali, Mr. Karim Tayach. In this HD video interview, filmed on the side lines of the AAPA Assembly of Presidents at  The Ritz-Carlton, Bali, we sat down with Ilya Gutlin President, Asia Pacific of SITA to learn more about the company and the future of air travel. Exclusive HD video interview with Mr. Luc Bollen, General Manager of The Park Lane Hong Kong, a Pullman Hotel.
The Ritz-Carlton, Bali Future of Aviation The Park Lane Hong Kong
A very brief glimpse into one woman's amazing journey sailing from California to Terengganu in Malaysia Exclusive HD video interview with Air Macau's Chairman of the Board and President of Executive Committee, Mr. Zheng Yan Exclusive HD video interview with the General Manager of the JW Marriott Hotel Macau, Mr. Brian Tong.
Sailing from California to Malaysia Air Macau's Chairman JW Marriott Macau
This HD video tour of Thai AirAsia X's brand new 337-seat Airbus A330-300 aircraft was filmed at Don Mueang Airport in Bangkok, Thailand on 14 May 2014 Exclusive HD video interview with Mr Wayne Mak, Managing Director of Rhombus International Hotels Group HD video of the interior and exterior of a Thai Vietjet Airbus A320-200.
Thai AirAsia X A330-300 Rhombus Int. Hotels Group Thai Vietjet A320-200
Inside Qatar Airways Boeing 787-8 Dreamliner - HD Video It takes 800 workers between 65 and 80 days to assemble, install, test, paint, furnish and deliver an Emirates Airbus A380. Showers, Bars, Lounge - The Emirates Airbus A380 Has Them All - HD Video Tour Thai Airways International Takes Delivery of Brand New Boeing 777-300ER
Qatar Airways B787 Emirates A380 Thai Airways B777-300ER

Latest Travel News
Advertising
Advertising

 
Copyright © 1997-2016 ASIATravelTips.com/TravelNewsAsia.com