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Insight Report - China Star-rated Hotels

Recently Ministry of Culture and Tourism of China released a statistical report on star-rated hotels. As of Q2 2020, China had 9,923 star-rated hotels registered in the national statistic management system, including 850 five-star hotels and 2,564 four-star hotels.

Key Insights from the report:

  • Bulk of the revenue came from non-rooms

Total 6,345 properties passed the review of provincial cultural and tourism administrative departments. The total revenue of these hotels was RMB 21.8 billion (USD 3.25 billion) in the quarter, with room revenue accounting for 38.91% of the total. The revenue of four-star hotels was RMB 7.97 billion, exceeding that of five-star hotels.

  • Lower ADR and occupancy rate

In terms of major indicators of hotel performance, the average daily rate (ADR) of five-star hotels was below RMB 500 (USD 74.5), and the occupancy rate was 30.1%.

  • Five-Star hotels experienced the sharpest decline

However, compared with the same period of last year, five-star hotels experienced the sharpest decrease in all key indicators, with RevPAR dropping by 64.4%. By contrast, one-star hotels recorded a 34.1% increase in RevPAR.

For detail report (in Chinese) click here.

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