Arab Today, arab today challenges but room for expansion in hotel industry
Last Updated : GMT 14:02:20
Arab Today, arab today
Arab Today, arab today

Challenges, but room for expansion in hotel industry

Arab Today, arab today

Arab Today, arab today Challenges, but room for expansion in hotel industry

Beijing - XINHUA

China\'s hotel developers and investors are gradually shifting their focus from building new hotels to protecting their assets as uncertainties and challenges are building up, but the country\'s hotel industry still offers great opportunities, according to a new report. The report, jointly issued by the China Tourism Hotel Association and Jones Lang LaSalle Hotels on Tuesday, said that China\'s hotel market is progressively moving from the development-expansion stage to an ownership-maintenance phase. The continuous increase in labor and operating costs, and competitive pressure from new supply and aging facilities are bringing challenges and pressures to hotel investors, owners and operators. Based on an extensive hotel survey and an assessment of 35 hotel markets in China, the report said that economic growth has brought new opportunities and challenges to the sector, with many hotels gradually entering the market and fueling competition. To respond to the challenge, hotel operators and investors should adopt aggressive and creative tactics, experts said. China\'s hotel market has an average occupancy rae of 60 percent, compared to about 80 percent in developed markets. The low occupancy rate is a result of oversupply, according to Zhao Huanyan, chief consultant at Shanghai-based SAO Hotel Solution. The average daily rate of a five-star hotel room in Shanghai was 526.17 yuan ($83) at the end of 2011, a drop of 14.05 percent from 2010. In the same period, the occupancy rate of five-star hotels averaged 55.81 percent, down 11 percent year-on-year, said Qiu Yongqiang, secretary-general of thehotel division of the Shanghai Tourism Trade Association. \"The large supply of new hotels is not only intensifying competition among hotels, but also affecting their rates. Hotels without special features can hardly retain customers,\" said Qiu. The increasing costs along with high employee turnover are worrying hoteliers. \"Many Chinese cities today are confronted with a hotel demand and supply imbalance despite the significant economic growth,\" said Andy Flaig, managing director for advisory Asia of Jones Lang LaSalle Hotels. However, some hotel owners are optimistic, said Charles He, senior vice-president of Jones Lang LaSalle Hotels and head of China advisory. \"Despite the fact that higher operating costs caused by rising inflation and the increased labor costs pose increasing challenges to future operations compared with the survey in 2011, 44.6 percent of surveyed hotels are optimistic or very optimistic when it comes to the market outlook,\" said He. According to Qiu, many boutique hotels, in particular, are getting more business these days than ordinary hotels due to their special features. \"Boutique hotels are not as well-equipped as five-star hotels, but their rates are much higher than average five-star hotel rooms. The secret is their exceptional service,\" Qiu said. While business travelers are still the main customer source among the surveyed hotels, many indicated growth in meeting, incentive, conference and exhibition venues as a key demand driver. Meanwhile, many hotels are continuing to explore F&B opportunities to increase overall revenue, the report said. At the same time, some multinational hotel groups have high hopes when it comes to the Chinese market. Marriott International Inc, for instance, said recently that it plans to open one hotel per month in China on average for the next five years.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today challenges but room for expansion in hotel industry Arab Today, arab today challenges but room for expansion in hotel industry

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today challenges but room for expansion in hotel industry Arab Today, arab today challenges but room for expansion in hotel industry

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Fighters celebrate Raqa victory

GMT 06:07 2017 Wednesday ,18 October

Fighters celebrate Raqa victory
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday