Cushman & Wakefield has released its 2025 China Hotel Industry Market Investment and Value Insights report.
As of 2024, China had a total of 5,620 hotels rated three stars or above. Performance varied by segment:
* Five-star hotels (736 properties) recorded an average occupancy rate of 62.5% and an ADR of RMB 755 (about USD 106);
* Four-star hotels (2,073 properties) reported 59.1% occupancy and ADR of RMB 423 (about USD 59);
* And three-star and limited-service hotels (2,811 properties) saw 62.1% occupancy with an ADR of RMB 345 (about USD 48).
The report notes that China’s hotel sector has entered a phase of stock-based competition. As operational systems mature, key performance indicators such as occupancy, ADR, and RevPAR are increasingly correlated with both city tier and hotel class.
However, the industry still faces low gross operating profit (GOP) margins, and actual investment returns often fall short of expectations. Against this backdrop, hotels need to strengthen cost management and refined operations to unlock greater profitability and enhance long-term asset value.
Cushman & Wakefield’s data shows that as of September 2025, there were approximately 74 active hotel asset securitization products in China, with a total issuance scale of RMB 116.8 billion (about USD 16.39 billion).
Most products are CMBS or CMBN structures backed by strong-credit entities. About 46% of the underlying hotel assets are located in first-tier cities, and over 70% are owned by state-owned enterprises (including central SOEs). Domestic and international hotel management brands now have nearly equal issuance numbers. The average financing rate has continued to decline, standing at around 2.78% in the first three quarters of 2025.
