STR Market Forecast: Beijing
Beijing recorded performance growth in all KPIs during the first half of 2017. Occupancy was up 3.5% to 73% while ADR (average daily rate) rose 1.9% to CNY 577, leading to a 5.4% growth in RevPAR (revenue per available room) to CNY 420.
Results were driven by both corporate and leisure demand. There was also not a significant amount of new supply added to the market during H1, although roughly 1,800 hotel rooms are set to come online before the end of the year, which could impact performance in H2.
Breaking down Beijing’s H1 performance by class, Midscale & Economy hotels led the market in RevPAR growth during H1, up 11.8% to CNY 205. The Upper Upscale segment posted the second largest RevPAR growth, up 5.6% to CNY 591. Luxury hotels recorded a 6.0% growth in occupancy, helping bring their RevPAR up 3.1%.
Beijing - ADR and Occ to stabilise in 2018
Historic 2011 - 2016, Forecast 2017 - 2021 (indexed to 2011), CNY, August 2017
Overall, our outlook for Beijing remains stable, with continued ADR growth projected until 2019 as demand is expected to remain strong. Occupancy should also continue growing over this time period, as supply growth hovers between 1-2%. In terms of arrivals, we expect the Philippines and Thailand will be the fastest-growing tourism source markets for China up to 2021.
The next edition of STR’s market Forecast for Beijing has been released in August. STR’s forecast reports provide in-depth analysis for monthly data through December 2018 and annual data through 2021. Projections are based on historical performance trends, economic insights and future supply development, making this report an essential tool during budgeting season