The downturn in Chinese hotel performance is likely to continue for the foreseeable future, according to a new report by STR Global.
Chinese hotels recorded an average occupancy of 44.9 per cent (compared to 75.3 per cent in Australia, 70.7 per cent in Singapore and 64.2 per cent in India) during February 2009. STR Global says the situation is being exacerbated by an oversupply of new hotels coming online in China, as well as a significant slowdown in demand for hotel rooms.
"The whole region has been hit hard by the global banking crisis and until December was in a period of sustained growth," said James Chappell, Managing Director of STR Global. "China now faces a sharp decline in demand to add to the oversupply." China´s average revenue per available room was RMB313.80 in February, down 23.5 per cent year on year.