Hotel rates in China are higher than 2019 levels during Lunar New Year

According to preliminary data from STR, the hotel industry in mainland China exceeded its average daily rate (ADR) comparable to that of 2019 for the Lunar New Year, even with a significantly lower occupancy rate.

The country’s ADR reached CNY766.95 during this year’s holiday period (January 31-February 6), 9.6% higher than the pre-pandemic comparable of the festival period in 2019 (699. CNY47).

“A stronger recovery in ADR is in line with our expectations for the Lunar New Year period this year, with overall rates being driven by the upper classes,” said Christine Liu, STR’s regional director for North Asia. . “Historically, the Lunar New Year has lowered 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 continued COVID restrictions across the country. »

STR: Hotel rates in China above 2019 level during Lunar New Year — Photo by STR
STR: Hotel rates in China above 2019 level during Lunar New Year — Photo by STR

On Wednesday, February 2, the market’s ADR peaked at CNY 830.21. Daily occupancy in the market hovered in the 30% range for most of the holiday period, then hit 36.6% on Friday February 4th. This was up from the comparable day in 2021 (34.5%) but significantly below 2019 (71.4%).

STR: Hotel rates in China above 2019 level during Lunar New Year — Photo by STRSTR: Hotel rates in China above 2019 level during Lunar New Year — Photo by STR
STR: Hotel rates in China above 2019 level during Lunar New Year — Photo by STR

About STR

STR provides premium benchmarking data, analysis and market intelligence for the global hospitality industry. Founded in 1985, STR operates in 15 countries with North American headquarters in Hendersonville, Tennessee, international headquarters in London, and Asia-Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of online commercial real estate information, analysis and marketplaces. For more information, please visit str.com and costargroup.com.

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