[photopress:SofitelHylandShanghaiExterior_1.jpg,full,alignright]Research and Markets has prepared a report : China Hotel Market Report, 2006-2007. The report suggests that after twenty years of rapid growth in the economy, China has now become one of the world’s most attractive destinations for tourists, which means great opportunities for the development of hotels.
A new investment peak in the hotel industry appeared in the 2004-2005 period: international hotel groups surged into the Chinese market on a large scale.
China had 120.29 million inbound travellers in 2005, increasing by 10.3% over 2004. Over 46.81 million of the inbound travellers stayed overnight, up 12.1%.
The demand for hotels in China is increasing because of, for example, the Beijing Olympic Games, Shanghai World Expo and Guangzhou Asian Sports Meeting all to be held soon.
For those who collect acronyms the report refers to the IBFCMF of all five-star hotels in China has increased by 42% in the past few years. And what, pray, does that mean? IBFCF stands for Income Before Fixed Charges and Management Fees. I fear we will be meeting it again.
IBFCMF for foreign funded five- and four-star hotels realized a better increase rate, which shared 43% and 35% of their total revenue respectively. Five-star hotels in Shanghai set the highest record in IBFCMF.
Source: Digital 50