[photopress:china_migrantwkr.jpg,full,alignright]Lodging Econometrics, which specializes in reporting on hotel real estate, reports that in the Asia/Pacific region hotels are booming and it is the development in China that is driving the boom. China has 496 projects with 170,417 rooms in the pipeline which represents 66% of all guest rooms currently planned in the region.
Lodging Econometrics forecasts that 96,839 rooms will open by year end ’08. Some will be large iconic type hotels located in ‘new city areas.’ Many will be located in world class mixed-use facilities. Using the Olympic Games and World’s Fair as its platforms China will introduce itself to an influx of international tourists and to others around the world as a growing world power.
Two cities lead the way in China:
Shanghai has 57 projects planned and running which will bring 15,831 rooms. These will become available over the next four years.
Beijing, host city for the Olympic Games, has 54 hotels with 17,634 rooms in the pipeline. Of those 36 hotels with 11,303 rooms will open the end of ’08.
The report says there is a significant guest room shortage in many markets and does not foresee a glut although allows trying to predict future demand growth is nearly impossible.