According to the latest forecast from STR and
Tourism Economics, the key Mainland China hotel markets are
projected to report performance growth in 2020, despite a
challenging macroeconomic environment.
“China’s economy, and by extension its hospitality
industry, remains strong even with concerns around the trade war
with the U.S. and an overall global economic slowdown,” said
Christine Liu, STR’s Regional Manager, North Asia. “A decline in
Chinese departures to other countries, combined with significant
government investment in infrastructure is driving domestic demand
in key markets. However, the country’s resilience to difficult
macroeconomic situations will be tested if the trade war continues
to decelerate economic growth.”
At the market level, Beijing should continue on
its growth trajectory with a forecast increase of 3.7% in RevPAR
while ADR is expected to grow +1.8%.
“Demand growth is key for Beijing as supply
continues to increase at a healthy rate,” Liu said. “The newly
opened Beijing Daxing International Airport, projected to be one
of the busiest in the world, and Beijing preparing for the 2022
Winter Olympics, highlight potential growth for the tourism and
After a challenging 2019, Chengdu is forecast
for ADR growth of 1.4%. The market is projected to report the
country’s second-largest supply growth rate (2.8%) with close to
18,000 rooms in the development pipeline. Demand will be helped by
China’s high-speed train system and subsequent MICE business.
As the international trading center and
comprehensive transportation hub of China, Guangzhou is expected
to show RevPAR growth of 3.4% with solid increases in both
occupancy and ADR.
Hangzhou, known for welcoming a mix of leisure and
business travelers, is set to see its run of performance growth
end in 2020 with RevPAR expected to decline -2.4%.
Among key markets in Mainland China,
Hangzhou should see the largest increases in supply (+4.1%) and
Following three years of occupancy declines caused
by the impact of new supply, 2020 is expected to be Shanghai’s
year of recovery. RevPAR growth is expected to reach 2.5% as the
market is likely to pick up displaced demand caused by continued
protests in Hong Kong.