China’s hotel industry recovers as occupancy and room rates return to pre-pandemic levels amid leisure travel boom
Surge in pent-up demand drives rise in occupancy rates and room rates. The proportion of midrange and prime hotels, which are more profitable, is up after budget brands took the brunt of pandemic closures, analysts say. The hotel industry in mainland China has seen a steady recovery over the past three quarters, thanks to a post-pandemic boom in leisure travel that fuelled demand for hotels and pushed up room rates. The occupancy rate across the country reached 68.4 per cent in the first nine months of 2023, only 2 per cent short of 2019 levels, according to analysts at JLL, a real estate services company.
