Beijing hotels face challenges from traveller behaviour changes and corporate budget cuts

• In Q2, favourable visa-free policies stimulated international demand. In addition, major conferences and exhibitions experienced a 17.6% y-o-y increase, further contributing to growth.
• The upscale market faces challenges due to a consumption downshift. After the pandemic, there was a divergence in consumption structure, with demand and prices for luxury hotels increasing and prices for upscale hotels decreasing.

One new hotel opens in Q2 2024

• The Renaissance Beijing Haidian Hotel opened its doors in May 2024.
• The anticipated opening of Mandarin Oriental Qianmen in September 2024 will mark Mandarin Oriental’s second hotel in Beijing.

Beijing hotels gradually improve trading performance

• Current macroeconomic uncertainties have led hotels to display a declining ADR level as of YTD June 2024 from last year. However, the continued rise in demand resulted in higher occupancy, enabling Beijing to record overall annual growth in RevPAR.
• In H1 2024, Beijing citywide hotels continued to be below pre-pandemic levels.

Outlook: Beijing hotels are expected to achieve further growth

• With the traditional summer vacation peak season approaching, Beijing’s upscale hotel market is expected to witness further growth. Favourable visa policies are also expected to further stimulate international demand.
• Prominent international conferences, such as the Sibos (Swift International Banker’s Operation Seminar), exhibitions and concerts also present valuable opportunities for the hotel industry.