Chinese Hotel Market Is Much More Than New Supply Discussion

By On 10th July 2013

A brand new report released today highlights the key trends in the Chinese Hotel Market. The Regional Director for Horwath HTL North Asia and renowned industry expert, Nigel Summers, wrote the report, called ‘Hotel Trends in China’. Horwath HTL is the world’s leading hospitality consulting brand with over 50 offices globally and Hong Kong, Beijing and Shanghai serving the Chinese market.

The report looks at key trends in the market, including:

  • Supply growth
  • Average Room Rates
  • Staff cost inflation
  • Conference and F&B
  • Demographic issues, domestic travel and local brands.

China has long been seen as the most significant market for expansion globally by some distance, easily outstripping the other BRIC countries combined, and yet the story has been focused on the effects that new supply has had on the market, rather than other trends that are as significant in the long term.

Nigel Summers said, “Of course hotel supply is an important factor, especially in the primary and secondary cities, but these need to be looked at with a longer term perspective and there are signs that certain markets may have seen the peak for new development. More significantly, domestic demand hasn’t ramped up to anything like the levels that we predict yet, and one of the side effects of wage inflation will be that local travellers will be able to pay more which could push up traditionally low room rates. What is also significant demographically is the number of cities in that have over a million inhabitants that haven’t experienced significant hotel development.”

Click here to download a copy of the report:

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