APPD Market Report Article


May 26, 2024

Nihat Ercan, CEO - Hotels & Hospitality Group, Asia Pacific


RMB 648


Corporate demand faces challenges in Q1

  • In Q1 2024, despite the fact that international destinations diluted some domestic demand with high spending power, Beijing saw a significant growth in visitor arrivals, and the visa-free policies further boosted international demand. During the Chinese New Year, the city welcomed 17.5 million visitors and generated RMB 28.7 billion in revenue.
  • Corporates have been cutting back on travel budgets due to economic concerns. The luxury segment saw the most significant budget decreases. However, to aim for the marketing effect that luxury brands might bring, most hotels were forced to adjust their rates accordingly.

Two hotels are anticipated to open in Beijing in 2024

  • In the first three months of 2024, no new upscale hotels were completed in Beijing, maintaining the existing supply at a total of 80,416 rooms at the end of March.
  • In 2024, Beijing’s hospitality landscape is set to expand with the anticipated opening of two hotels, including Mandarin Oriental Qianmen Beijing and Renaissance Beijing Haidian Hotel. These new openings will bring 72 and 321 keys to the market, respectively, by end-2024.

Beijing’s upscale hotels recovered to 88.5% of 2019 RevPAR

  • In January, Beijing’s upscale hotels registered a revenue per available room (RevPAR) of RMB 672, showing 54.6% y-o-y growth. In February, the RevPAR decreased to RMB 576 due to the decline in business travel and MICE activity during the Chinese New Year holiday. In March, the RevPAR increased to RMB 689, representing a 2.6% y-o-y growth.
  • By end-March, the YTD occupancy and ADR were 62.9% and RMB 1,030, respectively. RevPAR increased by 8.1% y-o-y to RMB 648, representing a recovery to 91.0% of the level in Q1 2019.

Outlook: Beijing hotels are expected to achieve further growth

  • There will be around ten significant conferences scheduled in Beijing for 2024, attracting high-quality business customers to the market. Hotels across the city are gearing up to accommodate the automobile exhibition scheduled in late April. Additionally, Beijing will host Sibos for the first time in October, drawing financial services executives and thought leaders from around the world.
  • Three national holidays are slated for Q2 2024, promising a boon for the Beijing market. As reported by STCN, Beijing ranks among the top three sought-after tourist destinations during the holidays. With an influx of travellers expected during these periods, hotels can anticipate heightened demand and potentially robust business performance during Q2.

Note: Beijing Hotels refers to Beijing's upscale hotel market.

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