Average hotel occupancy in China rose 6.2% to 56.5% in August compared to the same month in 2008. This according to a new report by STR Global. The average daily room rate dropped a spectacular 50.6% year on year.
In the hotel industry, this can be viewed as disaster piled on disaster. True the August figures are weighted against August 2008, which was the month Beijing hosted the 2008 Olympic Games. But the hotel occupancy rate at the Olympic Games was pretty disastrous.
STR Global reports that among the key markets, "Beijing, by far, reported the largest decreases in both average daily rate (down by 79%) and revenue per available room (down 79.9%) due to the Olympics. Hong Kong (down 22%) and Shanghai (down 15.4%), hosted the equestrian and football events.
BizChina Update, putting a little shine on the gloom, reported that among the key markets, Shanghai reported the largest occupancy increase, up 12.6% to 49.6%. That is an increase and still the rooms are half empty. There are places in Asia which are worse off but they are not experiencing a hotel opening boom. China is. The logic seems slightly faulty.
You must log in to post a comment.