STR Global has expanded its presence in China,
adding the markets of Hainan and its southern resort city of Sanya
to its detailed industry reports.
The data for both markets on this island in the
South China Sea comes from 31 hotels.
Occupancy in Hainan and Sanya has been
relatively stable for the year-to-date July 2011 when compared to
the same period in 2010, demand has grown steadily during the last
Comparing demand growth for the first seven months of
the year, Hainan saw a jump of 21.6% between 2009 and 2010,
followed by 6.4% between 2010 and 2011. For Sanya the trend is
similar with an increase of 18.4% between 2009 and 2010 and 9.6%
between 2010 and 2011.
Such demand has seen gains in ADR significantly in excess of the national average. Whilst the
percentage increases in ADR for Sanya (13.2%) are smaller than those
for Hainan (23.5%), the absolute ADR of Sanya (CNY1,393.82)
exceeds that of Hainan (CNY1,284.19). To a certain extent this
reflects the hotel mix of Sanya, which includes many of the
upscale international brands such as InterContinental,
Ritz-Carlton, Mandarin Oriental, Banyan Tree, Hilton and Sheraton.
The strength of demand and the resulting attractive RevPAR has seen new supply reaching and being
readied for the market. Hainan alone has 24 new hotels in its
pipeline, which accounts, in part, for the stabilisation of
occupancy seen in both Hainan and Sanya.
"With a big push
coming from Beijing to promote the development of Hainan Island as
a tourist destination, it was important for STR Global to be able
to provide data on this market to hoteliers, developers, owners
and investors," said Elizabeth Randall, managing director of STR
Global. "We are delighted so many of the island's hotels recognise
the clear value we add."
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