Home > Hotels > RevPAR in China’s hotel industry grows only 1.4% in first eight months of 2015

RevPAR in China’s hotel industry grows only 1.4% in first eight months of 2015

10/20/2015| 5:25:06 PM| 中文

The Chinese hotel market in major cities began to make a recovery in 2014 after a cooldown in demand in 2013 and this recovers has spread to most cities in 2015.

Although supply in China’s hotel industry has been dropping from 2012 to 2015, overall there has been growth in certain market segments due to oversupply and under-reporting of performance.

The market in major cities began to make a recovery in 2014 after a cooldown in demand in 2013 and this recovers has spread to most cities in 2015 and average monthly RevPAR has shown growth for the first time in 12 months. National RevPAR grew at a rate of 1.4% from January to August 2015.

http://www.traveldaily.cn/images/201510/c44471286d765d02.jpg

RevPAR (green) supply (purple) and demand (grey) trends in the Chinese hotel industry (January 2012 – August 2015)

 

 

http://www.traveldaily.cn/images/201510/34307c20fd8fd898.jpg

Performance indicators for China’s hotel industry (August 2015 m-o-m)

After many dips and rises in performance during 2012-2013 the occupancy rate in Shenzhen’s hotel industry started to recover in the second half of 2013. After 27 consecutive months of steady growth in occupancy the average room price also made began to make a turnaround in 2014 and by 2015 began to enjoy growth once again.

The China Medical Equipment Fair (CMEF) held in April was an important event for the Shenzhen’s hotel industry. So when the venue was changed to Shanghai this year it had a big impact on the city’s April performance. The average room price dropped 5.4% y-o-y among mid-range to luxury level hotels but demand still rose for the industry overall with occupancy up 4.1% y-o-y.

http://www.traveldaily.cn/images/201510/2492efc08dd83dd5.jpg

The effect of the CMEF on RevPAR in Shenzhen hotel industry (April 2013-2015 mid-range to luxury level hotels)

Official consumption decreased in the hotel industry in two major southwestern cities of Chengdu and Chongqing after 2013 but the industry had a quick recovery in demand in 2014.

 

http://www.traveldaily.cn/images/201510/f6161d329d81031b.jpg

Chengdu hotel market’s supply (purple) and demand (grey) growth (January 2012-August 2015)

http://www.traveldaily.cn/images/201510/4de7553ae160835e.jpg

Chongqing hotel market’s supply (purple) and demand (grey) growth (January 2012-August 2015)(Translation by David)

TAGS: China | hotel industry | performance | RevPAR
©2016 广州力矩资讯科技有限公司 粤ICP备06070077号-2
Tell us more about yourself!