[photopress:hotels_Andreas_Flaig.jpg,full,alignright]Consultancy firm Jones Lang LaSalle Hotels is of the opinion the outlook is rosy for the hotel market in Beijing and Shanghai in the next two years, with the 2008 Beijing Olympics and 2010 Shanghai World Expo just around the corner. This is a conclusion that has been universally accepted. However, the consultancy has put some figures on it.
Andreas Flaig, executive vice-president of Jones Lang LaSalle Hotels, expects the number of rooms at internationally branded hotels in Shanghai to grow 76% to 33,000 by 2010, while Beijing’s total will more than double to 27,000 by 2009.
About 27,000 branded hotel rooms will be rolled out in Shanghai this year, 8,240 of which will be new.
Many world-class hotels are in the pipeline for the two cities. A 190-room Four Seasons hotel will be opened in Shanghai’s Pudong District next year, while a Mandarin Oriental hotel with 203 rooms is also scheduled to open in 2008 in Beijing’s Chaoyang District.
Andreas Flaig said the vibrant economy and tourism industry of the two cities is creating strong demand for the hospitality sector that could be sustained well into the next decade.
In Beijing, last year, five-star hotels achieved the highest RevPAR (revenue per available room) since 1994. RevPAR for the first six months of the year has outperformed the same period in 2006. A similar pattern was observed in the four-star segment. What will happen during the Olympic Games will be a massive spike. What will be interesting is if a small hotel recession follows the end of the games.
Source: China Daily