Strong Recovering Signal Appears in China Hotel Industry

Affected by multi-factors including the international finance crises and A H1N1 flu, the Chinese hotel market remains on downturn in the first half of this year. The overview of the Chinese hotel market in first half of this year. 1.The occupancy rate is falling. According to the investigation, until the end of last year, the average renting rate of Chinese hotels is between 60% and 65%.The statistics in some places can't even let you feel optimistic: according to the investigation by the Beijing statistics bureau, affected by financial crisis and AH1N1 flu, the average renting rate of Beijing hotels is only 44.5%,down 10.1% year on year. The statistics shows, in first quarter of 2009,the average renting rate of Chinese hotels is 62.5%,down 5% year on year. 2.Average hotel rates is falling From the last year, the room rates of top grade hotels in Chinese major cities are declining continuously, the average room rate has declined RMB100,some of famous hotels even bankrupted. It's still on the downturn in the first half of this year and didn't hit the bottom. The statistics shows that the Chinese average hotel rates declined 22.2% in first five months, resulting in that the revenue of each rentable room decreased 43.9% year on year. Of which, the average room rate of Beijing hotel is down 17.3% year on year. Facing this much low price, the analysts all think that 2009 could be the most difficult year for Chinese hotel since the beginning of this century. Along with the continuation of international financial crises and global flu, Chinese hotel industry is getting into the mire of break of investing bubbles. 3.The vacancy rate of hotel's room is high. Since the beginning of this year, in some Chinese provinces and cities like Beijing, Shanghai, and Hainan, the vacancy rate of top grade hotel keeps being high. Some insiders think: the high vacancy rate of top grade hotels cannot totally ascribe to the financial crises and AH1N1 flu, it is the appearance of Chinese hotels' expanding blindly. Many factors resulted in overheating of investment in Chinese hotel industry. On one side is the poor occupancy rate; on the other side is expanding of hotel's investment. Some supervising data show: Wanda group plans to build over 20 five-star hotels by the end of 2010 with total investment 20 billions RMB; many city claim to introduce into some top international brands, building luxury hotels with large scale. Until now, the building or transforming five-star hotels has achieved 1,700. Strong Recovering Signal Appears in China Hotel Industry is a post from: Traveling China from Traveling China http://www.chinaya.org

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