Demand surges as Beijing tops summer tourism charts

• Beijing emerged as the leading destination for summer travel in 2024, driven by a significant increase in family and educational tourism. Study trips, especially inter-provincial week-long programs, saw a notable rise in popularity.
• Beijing’s status as a hub for international conferences served to further enhance demand. Events such as the Forum on China-Africa Cooperation drew government leaders and delegation groups from 53 African countries to the city.

Supply expands with new hotel openings

• Beijing’s upscale-and-above hotel market welcomed the addition of the Mandarin Oriental Qianmen. Being the most expensive hotel in China, the new property is expected to cater to a niche segment of luxury travellers seeking exclusive and local experiences in Beijing.
• No supply is expected to open in the last three months of the year.

Financial indicators show mixed results

• In July and August, occupancy demonstrated a slight improvement compared to the previous year; however, ADR decreased, resulting in a decrease in RevPAR compared to 2023. The primary reason for this decline was some high-spending families who chose to travel overseas.
• The Forum on China-Africa Cooperation in early September provided a welcome boost, filling the traditionally slower period with an influx of delegates, increasing both occupancy and ADR during that month.

Outlook: 12-month outlook remains cautiously optimistic

• Although October hotel occupancy is forecast to be lower compared to last year due to the absence of a major event like the Belt and Road Forum, the overall performance for the quarter is anticipated to remain on par with 2023.
• Looking ahead, hotels are adopting a conservative approach to budgeting, with expectations aligned with the current year’s performance.