APPD Market Report Article


December 1, 2021


RMB CNY 499 as of YTD September 2021


Demand recovers with the opening of Universal Studios

  • At the end of July, Nanjing Lukou International Airport was exposed to a pandemic outbreak, which spread to many cities in China. Beijing has not normalised prevention and control conditions until mid-August, which have significantly affected travel and hospitality demand in the country since August.
  • During the three-day Mid-Autumn festival holiday, the main tourist attractions in Beijing (excluding Universal Studios Beijing) received a total of 3.1 million tourists, which is 76.6% of the 2019 level. Beijing became quickly one of the most popular tourist destinations in China with the opening of Universal Studios in September.

Two upscale hotels open in 3Q21

  • Element Beijing Yanqing and Beijing Marriott Hotel Yanqing opened beginning of September, bringing in respectively 249 and 322 keys of new supply.
  • DoubleTree by Hilton Beijing Badaling entered the pre-opening stage on September 28th. The hotel will add 276 keys of new supply to the market.

YTD hotel RevPAR represents 60.8% of the same period in 2019

  • As at YTD September 2021, the average daily rate (ADR) and occupancy rate stood at RMB 962 and 51.9%, respectively. As a result, revenue per available room (RevPAR) was RMB 499, an increase of 95.2% compared with YTD September 2020.
  • Hotel performance recovered in July on the back of the summer holiday and the demand recovered from the relaxation of travel restrictions in Guangdong province. Both occupancy and ADR for the month of July reached more than 90% of the 2019 levels for the same period. In August, occupancy dropped by 41.0 percentage points m-o-m, due to tightened security controls caused by the outbreak in Nanjing.

Outlook: New theme park expected to keep driving hotel performance

  • With the stabilisation of the pandemic, Beijing Universal Studios is expected to attract more leisure tourists into the city and drive the growth of upscale hotels’ performance.
  • In 2020, the number of tourists visiting snow-related attractions in China exceeded 200 million for the first time. The prevalence of skiing and the coming Winter Olympics are expected to further boost Beijing hotel performances.

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

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