HOTELS in Beijing are set for a “better 2Q2015”, according to STR Global, which presented a Travel Trends in Asia update at the PATA Annual Summit last week.
Jesper Palmqvist, area director Asia-Pacific, STR Global, said: “There is a 15.1 per cent increase in the number of rooms in China over existing supply but China is not necessarily oversupplied. It depends on each specific market.”
He said that Beijing will see improvement this year and that the outlook in 2016 is bullish, adding that budget and economy hotels, such as Home Inns, are doing well in China.
Home Inns operates across 335 cities in China with a total of 2,609 hotels and is planning to open more hotels as well as to expand to Singapore, a popular destination among outbound Chinese tourists, he said.
He added: “There has been good recovery in the last 12 to 15 months for Shanghai, Suzhou and Shenzhen, which have turned around – first in occupancy, followed by rates.”
“Rates in Chongqing, for example, are going up by 19 per cent as there is strong demand and it will continue to do well in the next couple of years.
“In Wuhan, RevPAR is up 16 per cent,” he added.
The presentation also showed that boutique and lifestyle brands in China are doing well in 2015.
