Horwath HTL released its Annual China Hotel
Industry Study 2011 (Financial Year 2010) at the 8th China Hotels
Development Conference, organized by the China Tourist Hotels
The conference, held at the Dragon Hotel
Hangzhou, attracted more than 200 participants from across the
country, including leaders of hotel management companies, hotel
owners, developers, investors and government officials.
Chinese hotel market showed strong signs of recovery in 2010 after hitting rock bottom in 2009. Gross Operating Profit (GOP) levels
increased for all star-rating categories, with 3-star hotels
leading with the largest increase of 52%," said Damien Little,
Director of Horwath HTL Beijing. "However, positive growth in GOP was not spread evenly throughout the
country; many hotel markets across the country need to see a lot
more growth before performance levels could be considered healthy."
The study, in its ninth year of publication, highlighted three key
trends that have emerged in the Chinese hotel market between 2005
Firstly, domestic demand sources now account for a
larger share of total demand in the 4 and 5-star categories. This
significant shift, which has been evident in all corporate,
leisure and MICE segments, is reflective of a changing market
environment in China.
Secondly, domestic ADR
levels are increasing while foreign demand ADR has declined.
However, it should be noted that the growth in domestic ADR,
although positive, has been marginal. The drop in foreign demand
ADR has been credited to the weakness in foreign demand, increase
in supply of international hotels in smaller secondary markets,
and an oversupply situation in many markets resulting in price
Lastly, ADR of the 3-star market has increased, due
to the increasing number of internationally branded, limited
service hotels participating in the 2011 study and the greater
share of corporate demand.
About 664 hotels across 138 cities
in 30 provinces in the country participated in the Annual China
Hotel Industry Study 2011, representing 206,517 guestrooms across
star rating categories and a combined total revenue of about RMB
The annual study is co-published by Horwath HTL and
CTHA, and approved by the National Tourism Administration and the
National Bureau of Statistics of the People’s Republic of China.
See other recent news regarding: