The Chinese 5-star hotel sector saw gross operating profit levels fall to the lowest level in eight years, according to Howarth HTL’s latest China Hotel Industry study in conjunction with China Tourist Hotel Association.
The GOP level of RMB 91,752 per room ($13,375) is 39% lower than the peak recorded in 2005. This is the fourth year the figure has declined. The Beijing hotel market recorded occupancy of only 47.5% and an average room rate of RMB 836, which resulted in a revpar of only RMB 397. The global recession and an over supply of hotels following the Olympics are said to be major factors.
The resort destination of Sanya posted a 29% GOP growth to RMB 210,926 per room.
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