The hotel market in China exceeds 2019 numbers and is positioned as a global beacon
According to a STR report, the Lunar New Year average daily rate (ADR) has been higher even with lower occupancy
The country's ADR reached 766.95 CNY during this year's holiday period (January 31 to February 6), 9.6% higher than the comparable pre-pandemic 2019 holiday period (699, CNY47).
"A more significant ADR recovery is in line with our expectations for this year's Lunar New Year period, with overall rates buoyed by the upper classes," said Christine Liu, STR's regional manager for North Asia. “Historically, the Lunar New Year has reduced demand in Tier 1 markets, with most travelers visiting family or vacationing in suburban or rural areas. This year is obviously unique with the Beijing Olympics and the ongoing COVID restrictions across the country."
On Wednesday, February 2, the market's ADR reached a high of CNY830.21. Daily occupancy in the market remained in the 30% range for most of the holiday period and then rose to 36.6% on Friday, February 4. That was higher than the comparable day in 2021 (34.5%) but substantially lower than 2019 (71.4%).