[photopress:shnagrila.jpg,full,alignright]You can expect some price hikes in Shangri-la hotels in China in the coming year. There was a 35 percent increase in first-half profit on increased sales from its hotels in the region, especially in China, and it follows as summer does spring that increases in profits, which come from high occupancy rates, equals price rises until everything is neatly balanced.
Biggest growth is in China for this is Shangri-La’s biggest market. Growth is being pushed by both business and leisure travel. According to the China National Tourism Administration, visitor arrivals in China rose 10 percent to 120.3 million last year.
The company runs 20 hotels in China so it is well placed to profit from the boom. A guess would be that, judging by experience elsewhere, there will a steady rise in hotel room prices up to and including the Olympic Games no matter whether the hotels are in Beijing or not. After that there will be a slight readjustment at which point China will have found out whether it has over-built in hotels. All the signs are that this is not the case.
Source: Shanghai Daily.
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