China seeks Olympic revPAR boost
The Chinese hotel industry is banking on the Olympics to provide a much needed boost to its revenue per available room (revPAR), hotel industry analysts at STR Global have reported. China has experienced nationwide declines in revPAR through the first six months of 2008, with huge amount of new supply in the marketplace stretching demand and diluting occupancy levels. Meanwhile the tighter visa and airport security measure coupled with the crises in Tibet and Sichuan have combined to damped international arrivals. With the world watching China for the 2008 Olympic Games in August, expectations are high for improved second half performance.
China’s nationwide occupancy fell 6.9% in the first half of 2008 to 60.8%, and while average room rates (ARR) have continued to climb by 2.3% to CNY 936.2 (US$133.3), the overall result is a 4.8% decline in revPAR. But STR Global’s Managing Director, James Chappell, believes that the Olympics may provide an opportunity to recoup losses.
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