HotelsHotels reopen and begin a slow bounce back

Corporate travel demand drives lift in China hotel occupancy

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Shanghai hotel occupancies are climbing but yet to reach their former heights.
Shanghai hotel occupancies are climbing but yet to reach their former heights. Photo Credit: Askar Karimullin/ iStock/GettyImages Plus

BEIJING – Positive news continues to come out of China although hotel performance analyst STR cautions that the green shoots will be slow to develop.

In Beijing, daily occupancy sat around 10% for most of the first week of March but climbed to as high as 21.6% on 28 March. Shanghai was as low as 11.0% on 1 March but reached 28.6% on 28 March.

STR figures shows that 87% of the hotels in its Mainland China sample are now open after many had closed over the last two months.

Mainland China’s daily hotel occupancy reached an absolute level of 31.8% on 28 March, up from a low of 7.4% during the first week of February, according to preliminary data from STR.

Additionally, opening rates have been significant in key markets across the region.

"We’re seeing green shoots in hotel occupancy figures, but we must stress that these are only early signs of a recovery that is likely to develop slowly,” said Christine Liu, STR’s regional manager for North Asia.

“Some of the demand stems from corporate travel, primarily within the same province, as well as small-scale meetings. Additionally, hotels are seeing business from those travellers quarantined after returning to China from other countries as well as those returning to cities for work.

"Overall, we’re seeing limited leisure business in city centres but a bit more recovery in that segment in surrounding suburbs.”

In Beijing, daily occupancy sat around 10% for most of the first week of March but climbed to as high as 21.6% on 28 March. Shanghai was as low as 11.0% on 1 March but reached 28.6% on 28 March.

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