Hotel expansion in China under threat

Low occupancy in China endangers international hotel race

Poor demand for hotels in China as the race among international hotel chains to open large hotels across the country means that as many as four in 10 rooms remain empty. Hotel companies such as Hilton Worldwide, InterContinental Hotels and Hyatt Hotels Corp are investing heavily in the biggest of the emerging markets.
But occupancy in China rate was 61% for the first nine months of 2011, unmoved from the same period last year. This is also the lowest in Asia apart from India. Occupancy in Singapore and Hong Kong is more than 80%, but in Shanghai it’s only 50%.
“Hotels in some markets of China are clearly oversupplied in the next three to five years, and they won’t be generating good returns,” Nigel Summers, director of the hospitality industry analysts Horwath Asia Pacific, said. “China has had a very strong demand. The question is whether the increase in demand is going to be big enough to handle all the new hotels.”
Bloomberg Businessweek
[pictured: InterContinental Century City Chengdu; courtesy IHG]

x

Check Also

Hilton, Conrad Maldives Rangali Island, Muraka, coral, undersea, underwater, room, villa, suite, luxury, hotel

World’s first undersea villa to open in Maldives

Bookings have started for the suite at Conrad Maldives, which stresses “personalisation and hyper-exclusivity”.

IHG, voco, new, brand, luxury, individual, intercontinental, hotels, service, Regent, Convivio, portfolio, Foncière des Régions, UK, Europe, Australia, launch

IHG’s “charming” new upscale brand

voco will combine the informality of an individual hotel with all the benefits of being part of the group.

IHG, sign, deal, Pattaya, hotels, eastern seaboard, Thailand, Ratanakorn Asset, Rayong, Kao Lak, Phuket, Koh Larn, Samui

IHG bets on Pattaya and eastern Thailand

The hospitality giant signs up for eight new hotels in one go, spotlighting Thailand’s changing eastern seaboard.

Principal, IHG, buy, brand, luxury, hotels

InterContinental boosts luxury hotels in UK

IHG says it will become the largest luxury hotel operator in the UK after a new deal.

Regent, IHG, buy, purchase, brand, Asia, Europe, luxury, travel, stay, hotels, chain

IHG deepens luxury presence with Regent

InterContinental Hotels Group has big plans for Regent Hotels & Resorts after buying a 51% stake.

BC Hospitality Group, Hilton, ATP Real Estate, Henning Larsen, architecture, Copenhagen, Hilton, hotel, new, Nordea, quayside, harbour, port

Copenhagen quayside setting for new Hilton

The new renovation project will transform a former bank into an upscale hotel.