Key Mainland China hotel markets are projected to report performance growth in 2020 despite a challenging macroeconomic environment, according to the latest forecast from STR and Tourism Economics.
“China’s economy, and by extension its hospitality industry, remains strong even with concerns around the trade war with the US and an overall global economic slowdown,” said Christine Liu, STR’s regional manager for North Asia.
According to STR’s report, key hotel markets in Mainland China, notably Beijing, is expected to continue its growth trajectory with a forecasted increase of 3.7% in revenue per available room (RevPAR). The average daily rate (ADR) is expected to continue to grow (+1.8%) after a strong 2019 in the metric.
Liu added: “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 resiliency to difficult macroeconomic situations will be tested if the trade war continues to decelerate economic growth.”
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.