Hotel Destinations Greater China - Hotels & Hospitality Group | April 2017
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Hotels & Hospitality Group | April 2017 Hotel Destinations Greater China
2 Hotel Destinations - Greater China
Beijing
Quick Facts
International Visitor Arrivals (2016) Number of New Rooms (2016) ADR RevPAR OCC
4.2 million 1,479 rooms RMB 910 RMB 556 61.6%
New notable hotels Tourism Demand
Grand Metropark Hotel Beijing Data from Beijing’s Tourism Bureau show Beijing’s hotel demand is driven by
427 rooms the city’s international arrivals dropped business travel as well as the tourism and
0.8% y-o-y to 4.2 million at the end of MICE (Meetings, Incentives, Conferences
Grand Metropark Longxi
2016. Visitors from South Korea and Japan and Exhibitions) travel segments.
Conference Center
decreased 8.8% and 4.0% respectively, due Corporate demand remains the major
346 rooms
to their slower economy and economic demand driver. As Beijing is the political
InterContinental Beijing Sanlitun environment. French and German and commercial centre in Mainland China,
300 rooms travelers have also trended downwards by a large number of corporates have set up
12.3% and 2.9% respectively. The recent their headquarters in Beijing, generating
Tylfull Hotel
fall in the euro has led to a decline on considerable business demand.
226 rooms
business activities with Beijing’s long haul
Chao Clubhouse trading partners.
180 rooms
Notable hotel deals
Somerset ZhongGuanCun Beijing
Supply Outlook
Just five new hotels opened in Beijing The Beijing market will benefit from
in 2016, adding 1,479 rooms to the enhanced intercity transportation and
market. High-profile openings included tourism infrastructure development
Intercontinental Beijing Sanlitun and Chao underway. Ahead of the opening of
Upcoming hotels Clubhouse, both of which are located in Universal Studios in 2020 and the
Beijing Bvlgari Hotel Sanlitun. Strict development restrictions 2022 Winter Olympics in Beijing and
within the city centre are expected Zhangjiakou, several infrastructure
Mandarin Oriental Beijing to continue to restrain future supply. upgrades in and around the city will
Hualuxe Beijing Xinan Hotel Compared with Shanghai, where round support the hotel sector, including two
26 new hotels are expected to enter the new highways linking Beijing to nearby
The Puxuan Hotel and Spa market in 2017, just nine new hotels (2,204 tourism destinations, such as Chongli,
Muji Hotel Beijing rooms) are planned for Beijing. Yanqing, and Qinhuangdao.
Note: Beijing refers to Five Star hotels
Source: STR Global (YTD Feb 2017), Beijing’s Tourism Bureau, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
Hotel Destinations - Greater China 3
Chengdu
Quick Facts
International Visitor Arrivals (2016) Number of New Rooms (2016) ADR RevPAR OCC
2.1 million 2,885 rooms RMB 708 RMB 319 45.1%
Tourism Demand New notable hotels
Data from Chengdu’s Tourism Bureau Corporate demand remains the major Crowne Plaza Chengdu Wenjiang
indicates that the city’s total visitor arrivals driver of Chengdu’s hotel market. An 458 rooms
increased 5.8% y-o-y to 151.6 million in increasing number of Fortune 500
InterContinental Sancha Lake
first nine months of 2016. International companies have set up their Western
435 rooms
arrivals showed strong growth of 16.9% headquarters in Chengdu due to improved
y-o-y to 2.1 million during the same intercity transportation as well as Grand Hyatt Chengdu Chicony Plaza
period. Rapid growth of international Chengdu’s critical geographic position as 391 rooms
visitation can be attributed to the 72 hour the core business centre in the central and
JW Marriott Hotel Chengdu Financial
visa exemption policy issued by Chengdu western China. In addition, the opening
Centre
Government. Despite Chengdu offering of a new convention and exhibition centre
345 rooms
some of the cheapest luxury rooms of all located in Tianfu New Town has helped
Mainland Tier 1 cities, an overwhelming drive Chengdu’s MICE market. Large scale Palm Springs Fairmont Hotel Chengdu
supply pipeline is likely to keep rates low international conferences and exhibitions 336 rooms
for some time. include the International Auto Show and
Pharmaceutical related conferences.
Notable hotel deals
There were no hotel transactions in
Supply Outlook
H2 2016
Last year, a total of 10 hotels positioned Oversupply is exerting downward pressure
in the mid to upscale level commenced on hotel performance. Occupancy will
trading, offering 2,885 hotel rooms. There remain under pressure for some time
are 8,000 rooms under construction or whilst the current development pipeline
in the planning phase. We are confident remains. Much of this new demand
Upcoming hotels
that several projects will be cancelled is happening in Tianfu New Town and W Hotel Chengdu
or reverted to office buildings. We are suburban areas, such as Qingcheng
currently monitoring up to 12,000 rooms in Mountain and Shuangliu District. Two high Waldorf Astoria Chengdu
the pipeline, predominantly midscale. The speed railways, namely Xi’an – Chengdu Swissotel Chengdu
luxury market is well saturated in Chengdu High Speed Railway in 2017 and Chengdu
with the bulk of ongoing development – Lanzhou High Speed Railway in 2019, Cachet Chengdu
likely to be in the budget and midscale efficiently connecting Chengdu to Northern Westin Chengdu
category. parts of China bode well for Chengdu’s
tourism and hotel market long term.
Note: Chengdu refers to Marketwide hotels
Source: STR Global (YTD Feb 2017), Chengdu’s Tourism Bureau, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
4 Hotel Destinations - Greater China
Chongqing
Quick Facts
International Visitor Arrivals (2016) Number of New Rooms (2016) ADR RevPAR OCC
3.2 million 1,381 rooms RMB 595 RMB 341 57.2%
New notable hotels Tourism Demand
Holiday Inn Chongqing University Town In 2016, Chongqing’s Statistics Bureau’s High end corporate demand mainly
360 rooms data showed the city received 450.9 million concentrates in Jiangbeizui Financial
visitors (both international and domestic), Center with encouraging growth in terms of
DoubleTree by Hilton Chongqing
increasing 15.1% y-o-y. International corporate room demand recently recorded
Nan’an
arrivals were a minor 3.2 million visitors, as the market becomes more mature.
237 rooms
growing 12.1% y-o-y. As Chongqing is Good high-speed railway connections
Regent Chongqing one of the core business centers of the facilitate intercity travel and a rising
202 rooms Mainland as well as a major transportation number of leisure FITs do visit Chongqing
hub in the central and western areas, the to explore the city’s unique culture and
Somerset Service Residence
bulk of international arrivals are corporate famous local food.
Changjiang
visitors.
172 rooms
Howard Johnson Jinyi Hotel Chongqing
169 rooms
Notable hotel deals
There were no hotel transactions in
H2 2016
Supply Outlook
In 2016, seven new hotels were operational Hotel performance is looking positive
in Chongqing, adding 1,381 rooms to given the city’s transportation system
the market which saw the existing hotel keeps expanding and an overall important
market growth by around 10%. Post 2017, industrial base that exists in Chongqing.
Upcoming hotels new projects in the pipeline could add High-speed railways are set to pass
Indigo Chongqing Guanyinqiao up to 5,000 new rooms if all materialize, by Chongqing in the future, enabling
although this seems unlikely and we expect enhanced intercity connection from the
Mandarin Oriental Chongqing around half of these mooted projects to city with Tier 1 as well as most of Tier 2
InterContinental Chongqing Raffles City eventuate. cities of the Mainland. We expect its strong
corporate base to continue developing.
Hilton Chongqing Jiangbeizui
Beibei Angsana
Note: Chongqing refers to Marketwide hotels
Source: STR Global (YTD Feb 2017), Chongqing’s Tourism Bureau, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
Hotel Destinations - Greater China 5
Guangzhou
Quick Facts
International Visitor Arrivals
(YTD June 2016) Number of New Rooms (2016) ADR RevPAR OCC
1,800 rooms RMB 842 RMB 575 68.2%
3.9 million
Tourism Demand New notable hotels
Aloft Tianhe
According to the latest statistics available, As at YTD June 2016, same-day visitation
496 rooms
as at YTD June 2016, total visitor arrivals to dominates tourist arrivals in Guangzhou,
Guangzhou grew 6.3% y-o-y to 78.7 million. as only 33.9% of tourists are overnight Hampton Guangzhou
Overnight visitor arrivals grew 5.4% y-o-y visitors. Domestic travellers remain 223 rooms
to 26.7 million, while same-day visitor as Guangzhou’s largest source market,
Holiday Inn Express Guangzhou
arrivals grew 6.8% y-o-y to 52.1 million. As contributing 85.4% to overnight visitor
Baiyun Airport
a number of internationally branded hotels arrivals as at YTD June 2016. However,
223 rooms
are expected to enter the Guangzhou stronger improvement (+6.3%) has been
market, local Chinese-branded hotels face recorded in the international market over Lavande Guangzhou Lianhe
increasing competition. the same period, indicating the future Science City
potential growth in those markets. 120 rooms
Lavande Guangzhou Panyu
Chimelong
116 rooms
Notable hotel deals
Supply Outlook There were no hotel transactions
in H2 2016
Approximately 1,800 rooms have entered Guangzhou remains as one of the major
Guangzhou in 2016, most of which are business and conference hubs in southern
midscale properties developed outside Mainland China. Conferences such as
the city centre. Some of the notable hotel the Canton Fair and Spring Fair support
openings include the seven Lavande Guangzhou’s hotel market annually.
Upcoming hotels
properties which together contributed However, similar to Beijing and the Conrad Guangzhou
some 600 rooms to the market, Shanghai market, a large number of
representing about one third of total new additional hotel rooms (around 3,000 Solis Guangzhou
supply. Other notable hotel openings rooms) are expected to enter the market Rosewood Guangzhou
include Aloft Tianhe (496 rooms) and over the next three years, which will place
Hampton Guangzhou (223 rooms). pressure on room rate growth. Sheraton Guangzhou Panyu
Hilton Guangzhou Panyu
Note: Guangzhou refers to Upscale hotels
Source: STR Global (YTD Feb 2017), Guangzhou Statistics Bureau, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
6 Hotel Destinations - Greater China
Hangzhou
Quick Facts
International Visitor Arrivals (2016) Number of New Rooms (2016) ADR RevPAR OCC
3.6 million 1,316 rooms RMB 1,027 RMB 560 54.5%
New notable hotels Tourism Demand
Midtown Shangri-La The total number of domestic travellers The 2016 G20 Summit was held in
417 rooms was recorded at 13.7 million, growing by Hangzhou in September, which was the
13.8%, while total number of international first ever G20 summit to be hosted in
Crowne Plaza Hangzhou
travellers was at 3.6 million. In 2016, Mainland China. In order to temporarily
284 rooms
Hangzhou Tourism Bureau has actively control air pollution, in the days before
Park Hyatt Hangzhou carried out marketing campaigns in the the summit, only a certain type and
200 rooms USA, Korea, and major countries in Europe, number of vehicles were allowed into
and was rated in 2016 as one of the “52 the city. Visitor flow into Hangzhou was
Places to Go” by the New York Times. also restricted. Due to such limitations,
Hangzhou visitor arrivals fell in August, but
quickly rebounded after the summit was
completed.
Notable hotel deals
There were no hotel transactions in
H2 2016
Supply Outlook
New room additions are relatively Over the past few years, Hangzhou has
limited compared to other major cities been recognised for its remarkable
in Mainland China such as Shanghai economic development and continuous
and Beijing. Approximately 900 rooms success in booming high-tech and software
have entered the market in 2016, industries. Corporate demand has been
including the 200-room Park Hyatt driven by the growth of services and
Upcoming hotels Hangzhou, the 417-room midtown advanced industries, while leisure demand
Cachet Deluxe Hangzhou Shangri-La, and the 284-room Crowne has stayed robust as Hangzhou remains
Plaza Hangzhou Thousand Island as one of the major tourist destinations
Ascott Raffles City Hangzhou Lake. Notable future openings include in China. With the influence of the G20
Hilton Garden Inn Hangzhou Luniao Fairmont Hangzhou (late 2017), Conrad summit and Hangzhou Tourism Bureau’s
Hangzhou (2018), and the luxury resort active marketing campaigns, domestic and
Hilton Hangzhou Xiaoshan Ahn Luh Qiandao (also in 2018). international visitors are forecast to rise.
Alila Villas Hangzhou
Note: Hangzhou refers to Marketwide hotels
Source: STR Global (YTD Feb 2017), Hangzhou Tourism Bureau, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
Hotel Destinations - Greater China 7
Hong Kong
Quick Facts
International Visitor Arrivals (2016) Number of New Rooms (2016) ADR RevPAR OCC
56.7 million 1,022 rooms HKD 1,740 HKD 1,419 81.6%
Tourism Demand New notable hotels
Total visitor arrivals declined 4.5% in 2016 Mainland China is Hong Kong’s largest Silka Tsuen Wan
compared to 2015 mainly due to the sharp source market, contributing 75.5% of all 409 rooms
decline of same-day visitors from Mainland total visitor arrivals in 2016. Over the same
Camlux Hotel
China. In April 2015, the Mainland period, the number of overall visitors from
185 rooms
restricted Shenzhen permanent residents Mainland China continued to fall, down by
to just one entry per week, which has 6.7% y-o-y to 42.8 million arrivals. This can Attitude on Granville
largely contributed to the same-day visitor be attributed to the socio-political tension, 81 rooms
decline of 8.7% y-o-y. On the other hand, stronger local currency, tightened visa
Hotel Hart
the rate of decline in total overnight visitor policy for Shenzhen visitors, and increasing
69 rooms
arrivals has slowed from being down 5.2% competition from other destinations
in 2015 to 0.5% in 2016, showing signs that such as Japan and South Korea, which
we are beginning to see improvement in drew significantly more visitors from the
Mainland arrivals. Mainland.
Notable hotel deals
Supply Outlook Newton Place Hotel Kwun Tong
Rosedale Causeway Bay
Over 1,000 rooms have been added into The increase in supply and economic J Plus Hong Kong
the market last year, most of which are uncertainties are expected to limit growth
small to medium sized midscale/economy in hotel performance. 2016 has set the
properties in Hong Kong Island and stage for a relatively uncertain 2017, with
Kowloon. So far in 2017, two hotels have ‘Brexit’ expected to limit European visitors.
opened, Attitude on Granville with 81
rooms, and the Silka Tsuen Wan with 409
As a major corporate hub, Hong Kong Upcoming hotels
is always affected by global economic
rooms. Approximately 6,000 rooms remain concerns and this remains still in recovery. Kerry Hotel by Shangri-La
in the pipeline. Notable openings are: However, we are cautiously optimistic
Disney’s Explorer’s Lodge with 750 rooms, Disney’s Explorer’s Lodge
that hotel performance is likely to return
Rosewood Hong Kong in Tsim Sha Tsui with to stabilised levels over the medium Rosewood Hong Kong
600 rooms, the Kerry Hotel by Shangri-La term, as Hong Kong has proven itself to
with 545 rooms, and The Murray, a Niccolo The Murray, a Niccolo Hotel
be a resilient city on the back of its multi-
Hotel with 336 rooms. faceted appeal for FIT, leisure, corporate as
well as MICE-related demand. It is however
increasingly competing with cheaper
Shanghai for the latter.
Note: Hong Kong refers to Upscale hotels
Source: STR Global (YTD Feb 2017), Hong Kong Tourism Bureau, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
8 Hotel Destinations - Greater China
Macau
Quick Facts
International Visitor Arrivals (2016) Number of New Rooms (2016) ADR RevPAR OCC
31.0 million 4,700 rooms MOP 1,426 MOP 1,224 85.9%
New notable hotels Tourism Demand
The Parisian In 2016, international visitor arrivals to With a total of 20.5 million visitor arrivals
3,000 rooms Macau stayed relatively flat, improving recorded in 2016, Mainland China
by 0.8% y-o-y to 31.0 million. The gaming remained Macau’s top source market,
Wynn Palace
industry showed signs of recovery contributing 66.1% to total visitor arrivals.
1,700 rooms
with data released by Macau’s Gaming Following a drastic fall in 2015, the
Inspection and Coordination Bureau Mainland Chinese market gained some
recording gross gaming receipts rising 3.1% momentum in December 2016, growing
to MOP 19.3 billion in January 2017. by 7.8% compared to December 2015,
ending the year with a 0.2% negligible
improvement.
Notable hotel deals
There were no hotel transactions in
Supply Outlook
H2 2016
According to the Macau Government Macau’s economy is driven by the gaming
Tourism Office, total hotel rooms in Macau sector. However, casino operators are keen
amounted to 37,634 rooms with a 13.9% to diversify into other non-gaming sectors
increase in supply compared to 2015. The including theme parks, sporting and other
Upcoming hotels growth in supply was contributed mainly entertainment options as well as the
The 13 by two major hotel openings in 2016: international MICE market. To attract more
Wynn Palace (1,700 rooms) and at almost visitors, the government is also improving
MGM Cotai double the size Parisian (3,000 rooms). infrastructure including the development
Lisboa Palace Upcoming major supply additions include of the Taipa Ferry Terminal, the Macau
MGM Cotai (1,500 rooms) scheduled to Light Rapid Transit and the development
Palazzo Versace Macau open during the second half of 2017, and of a large scale integrated development
Roosevelt Hotel Macau the ultra-luxury hotel “The 13” (200 suites) zone with strong finance, technology, and
scheduled to open in early 2017. leisure generators on Hengqin Island.
Note: Macau refers to Marketwide hotels
Source: STR Global (YTD Feb 2017), Macao Government Tourism Office,
Gaming Inspection & Coordination Bureau Macau, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
Hotel Destinations - Greater China 9
Sanya
Quick Facts
International Visitor Arrivals (2016) Number of New Rooms (2016) ADR RevPAR OCC
449,000 million 2,127 rooms RMB 2,469 RMB 1,899 77.2%
Tourism Demand New notable hotels
The city’s domestic arrivals increased Sanya is a major holiday destination The Sanya EDITION
10.1% to 16.1 million, while international for Chinese nationals but recent years 512 rooms
arrivals grew 25.3% to 448,857 in 2016. have seen the location become more
Sofitel Sanya Leeman Resort
International arrivals have trended popular with corporate events and
477 rooms
downwards between 2012 and 2015 conferences. Domestic arrivals account
because of cheaper competition from other for approximately 97% of the total arrivals. Grand Hyatt Sanya Haitang Bay
international resort markets in Malaysia, The resort market is quite popular with 435 rooms
Thailand and Indonesia. There are now 15 family vacations with a number of hotels Crowne Plaza Sanya
direct flights connecting Sanya to major now offering kids clubs, family room
City Center
source markets in Southeast Asia, Russia accommodation and other attractions
383 rooms
and Europe with a noticeable rebound of aimed at bring in more demand from this
arrivals witnessed in 2016. cohort.
Notable hotel deals
There were no hotel transactions in
Supply Outlook
H2 2016
Five hotels opened in 2016, adding 2,127 As China’s only tropical island resort, a
rooms to the market. Given room supply steady stream of domestic leisure tourists
remains heavily saturated in Sanya Bay holiday there, albeit seasonally. However,
and Yalong Bay, new projects are now an oversupply of rooms, competition from
focused on the Haitang Bay market. We local serviced apartments and Airbnb are
Upcoming hotels
are tracking around 10,000 rooms in the limiting rate growth marketwide. Haitang The St. Regis Qingshui Bay Resort
supply pipeline, mostly to be located in Bay and Qingshui Bay are growing in
Haitang Bay. Many international brands popularity with tourists and will see the Mandarin Oriental Haitang Bay
are looking to have their foot print in this bulk of new hotel development. Sanya’s Atlantis Resort Sanya
market. tourism authority is promoting more
international flights and cruises and Rosewood Sanya
introducing new entertainment facilities One&Only Sanya
such as Atlantis Resort which are positive
for the market’s long term fundamentals.
Note: Sanya refers to High-End & luxury hotels
Source: STR Global (YTD Feb 2017), Sanya Statistics Bureau, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
10 Hotel Destinations - Greater China
Shanghai
Quick Facts
International Visitor Arrivals (2016) Number of New Rooms (2016) ADR RevPAR OCC
8.5 million 5,428 rooms RMB 977 RMB 623 63.8%
New notable hotels Tourism Demand
InterContinental Shanghai National The rate of growth in international arrivals Shanghai’s hotel demand is mainly driven
Exhibition & Convention Center has continued its positive trajectory. Data by the corporate sector. Shanghai is one of
543 rooms from Shanghai’s Tourism Bureau show the the Yangtze River Delta’s major commercial
city’s international arrivals climbed 6.8% centers, and business travel is the
Shanghai Disneyland Hotel
y-o-y to 8.5 million at the end of 2016. dominant source of hotel demand, thanks
420 rooms
Although economic and trading activities to a steady stream of visitors involved in
Sofitel Shanghai Hongqiao softened in major Asian source markets, the city’s finance and service industries.
360 rooms visitors to Shanghai grew including a 13.1% The recent opening of Shanghai Disney
increase from South Korea and a 3.1% Resort has been a boon for strong growth
Wanda Reign on the Bund
rise from Japanese visitors. This again in domestic tourism in Shanghai and
300 rooms
proves Shanghai’s leading position as a becoming a major drawcard for regional
Le Meridien Shanghai Minhang core trading and financial hub across the visitors as well.
240 rooms Mainland.
Notable hotel deals
Starway Parkview South Station
Supply Outlook
Hotel (70%)
Amenity Garden
The Mosaic Collection Grand In 2016, a total of 18 hotels positioned Although Shanghai foresees an influx
Rainbow Plaza Shanghai in the upscale and midscale levels of room additions in the short term,
commenced trading, largely driven by the we expect trading performance to be
opening of Shanghai Disney Resort. Soon, driven by demand generated by fast city
Shanghai will overtake the previous 2010 development including the expansion
supply peak, the year when Shanghai of city’s sub-centers and entertainment
Upcoming hotels Expo was held. From 2017 onwards, precincts including Polar Ocean World
Bvlgari Shanghai approximately 14,000 rooms will be added and a potential Lego Land project. New
to the market over consecutive years, projects are concentrated in peripheral
W Shanghai the Bund registering 21% growth on existing supply. areas such as Jiading, Songjiang and
The Shanghai Tower J Hotel Chongming so we expect some pressure on
room rates in the outer areas of Shanghai
The St. Regis Shanghai Jingan over the next few years
Edition Shanghai
Note: Shanghai refers to Five Star hotels
Source: STR Global (YTD Feb 2017), Shanghai’s Tourism Bureau, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - OccupancyHotel Destinations - Greater China 11
Shenzhen
Quick Facts
International Visitor Arrivals (2015) Number of New Rooms (2016) ADR RevPAR OCC
12.1 million 1,316 rooms RMB 1,169 RMB 885 75.7%
Tourism Demand New notable hotels
Shenzhen overnight visitors have grown Shenzhen visitor arrivals are Grand Skylight Hotel Shenzhen
steadily in the past decade thanks to predominantly domestic visitors, 342 rooms
the continuous success of technology constituting approximately 77.3% of
DoubleTree by Hilton Shenzhen
and finance industry and the booming total visitor arrivals in 2015. Due to the
Longhua
domestic tourism market. According to geographical proximity and historical
238 rooms
the latest statistics available, in 2015, total trading relationships, Hong Kong, Macau,
overnight visitor arrivals grew by 7.7% and Taiwan together is Shenzhen’s major Ramada Shenzhen Bao’an
to 53.8 million. In the same period, total international source market, contributing 225 rooms
overnight international visitors grew by 18.8% to total overnight visitor arrivals
Hyatt Place Shenzhen Airport
3.1% to 12.2 million, while total overnight due to the vicinity to Shenzhen. Anecdotal
167 rooms
domestic visitors grew by 9.1% to 41.6 evidence suggests that business travellers
million. are mostly in professional services and Hyatt House Shenzhen Airport
technology industry. 122 rooms
Notable hotel deals
There were no hotel transactions in
Supply Outlook
H2 2016
Approximately 1,000 rooms have been Hotel operators are increasingly fierce in
added into Shenzhen market in 2016, this market, especially in the luxury hotel
most of which are in the Bao’an District, space. Approximately 15 luxury hotel
the northwest part of Shenzhen. Bao’an projects are expected to be launched over
District is traditionally known as the “old coming years. The focus of luxury hotel
Upcoming hotels
district”. It is where the Shenzhen Airport is supply will gradually shift from Futian Hilton Shenzhen Nanhai
and where the traditional logistics business district to Nanshan district, due to the
was located. With the recent residential development of the Qianhai Free Trade Hard Rock Hotel Shenzhen
and mixed-use development projects in Zone and Houhai Headquarter Base, Hyatt Regency Shenzhen Airport
Bao’an, the district is expected to become which is expected to attract more business
the next potential sought-after real estate travellers to Nanshan. Mandarin Oriental Shenzhen
market in Shenzhen. Ascott Raffles City Shenzhen
Note: Shenzhen refers to Five Star hotels
Source: STR Global (YTD Feb 2017), Shenzhen Statistics Bureau, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy12 Hotel Destinations - Greater China
Taipei
Quick Facts
International Visitor Arrivals
(Taiwan 2016) Number of New Rooms (2016) ADR RevPAR OCC
10.7 million 868 rooms TWD 7,017 TWD 4,564 65.0%
New notable hotels Tourism Demand
Courtyard Taipei According to the latest statistics available, Mainland China remains as Taiwan’s largest
465 rooms total visitor arrivals to Taiwan in 2016 source market, amounting to 32.9% of
reached approximately 10.7 million, up total arrivals in 2016. To cover the decline
Amba Taipei Songshan
250,494 or 2.4% over the previous year. of the Mainland market, the Taiwanese
189 rooms
With Mainland Chinese visitor arrivals government has been actively promoting
Grand Mayfull Hotel Taipei declining by 16.1% over the same period, its country’s tourism in Japan and several
146 rooms the improvement in total visitor arrivals Southeast Asia markets. In September
was predominantly driven by the robust 2016, visa restrictions to Taiwan were
Roaders Hotel Taipei
growth in Japanese and Southeast Asia eased for citizens of ASEAN nations, and as
68 rooms
markets. a result, the Southeast Asia market overall
has witnessed a noticeable increase of
leisure tourists.
Notable hotel deals
There were no hotel transactions in
Supply Outlook
H2 2016
Some of the notable openings in 2016 With Mainland China being the main source
included Courtyard Marriot (465 rooms), market for the country, the tourism market
Amba Taipei Songshan (189 rooms), and is likely to remain challenging if cross-
Grand Mayfall Hotel Taipei (146 rooms). strait tensions continue. To its benefit,
Upcoming hotels Looking forward, international hotel Taiwan’s government has been diversifying
CitizenM Ximending openings include CitizenM in Ximending key source markets to ASEAN nations and
(expected mid 2017) and Taipei Royal Japan. Recent development plans such as
Taipei Royal Golden Tulip Hotel Golden Tulip Hotel (2018). The Aloft Hotel the Taipei Sky Tower project are likely to
Fujita Kanko Hotel Taipei Beitou (292 rooms) opened in early further enhance Taipei’s status as a major
2017. According to the latest statistics tourism destination in Asia.
Renaissance Hotel available, as at the end of 2016, a total
of 517 hotels with 25,477 rooms were in
operation.
Note: Taipei refers to Luxury & Upper Upscale hotels
Source: STR Global (YTD Feb 2017), Taipei Tourism Board, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - OccupancyHotel Destinations - Greater China 13
Tianjin
Quick Facts
International Visitor Arrivals
(YTD Sep 2016) Number of New Rooms (2016) ADR RevPAR OCC
2.6 million 188 rooms RMB 618 RMB 291 47.1%
Tourism Demand New notable hotels
Data from Tianjin’s Tourism Bureau Tianjin’s hotel market is driven by The Ritz-Carlton Executive
indicates the city’s international arrivals corporate demand. As one of the “Twin Residences Tianjin
increased 1.1% y-o-y to 2.6 million as Engines” of region wide development 188 rooms
at YTD September 2016. Japan was together with Beijing, Tianjin attracts
the largest source market, accounting investment from world-leading firms
for 38% of total international arrivals, such as the Airbus, which in 2008 opened
followed by Korea and Singapore, which its first assembly line outside Europe in
took up 18% and 8% of total visitor the Binhai New Area. A majority of the
arrivals, respectively. Average spend by city’s industrial base comprises relatively
international visitors registered USD 1,033 high-end manufacturers including
during the same period. This was almost aerospace, equipment manufacturing,
double of Chongqiong (a similar Tier 1.5 pharmaceuticals, new energy, new
city), which recorded USD 533. The higher materials, and defense companies, which
travel budgets should lead to room rate generate considerable corporate demand
growth long term.
Notable hotel deals
There were no hotel transactions in
Supply Outlook
H2 2016
New hotel openings are easing in Tianjin In the short term, hotel market
and several sites are now being developed performance will continue to be
as alternative uses such as office space constrained by high occupancy and
or residential projects. We are still oversupplied rooms. Longer term we
monitoring around 8,000 rooms that believe that the coordinated development
Upcoming hotels
remain in the medium term pipeline but with Beijing and Hebei Province will Grand Hyatt Tianjin
high market occupancy and limited rate generate increasing demand from the
growth does not justify the development of corporate sector. Improving leisure travel Conrad Tianjin Binhai
these hotels. We expect limited new hotel is occurring during the national holidays Tianjin Four Seasons
completions for the foreseeable future. or on weekends, thanks to better intercity
transportation. Tianjin is also ramping HUALUXE Tianjin Nankai
up efforts to develop its business services InterContinetal Tianjin Yujiapu
sector by offering benefits such as lower Hotel & Residences
startup capital requirements.
Note: Tianjin refers to Marketwide hotels
Source: STR Global (YTD Jan 2017), Guangzhou Statistics Bureau, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy14 Hotel Destinations - Greater China
Wuhan
Quick Facts
International Visitor Arrivals (2015) Number of New Rooms (2016) ADR RevPAR OCC
2.0 million 1,179 rooms RMB 657 RMB 326 49.6%
New notable hotels Tourism Demand
InterContinental Wuhan Wuhan’s international arrivals increased Business travel remains the dominant
485 rooms 18.6% y-o-y to 2.0 million in the end source of hotel demand, thanks to a
of 2015, as a result of increasing direct steady stream of visitors involved in
Lianyou Peninsula Hotel
international flights. As Wuhan maintains the city’s optic-electronic, automobile
355 rooms
a close business relationship with France, manufacturing, information technology,
Hilton Wuhan specifically within the automotive industry, iron and steel manufacturing industries.
Riverside French corporate demand is strong. During Completion of the Zhongshan Avenue
339 rooms Spring Festival in 2017, Wuhan received 8.4 Renovation Project, which involves
million visitors, growing 13.7% compared renovating historical buildings, upgrading
with the same period in 2016. commercial centres along Zhongshan
Avenue in order to integrate traditional
Hankou culture with modern commercial
concepts has generated increasing leisure
demand.
Notable hotel deals
There were no hotel transactions in
Supply Outlook
H2 2016
Three hotels opened in 2016, providing Wuhan is benefiting from enhanced
1,179 rooms to the market and all located city transportation for more subway
in the Hanyang District. These included lines connecting Hankou, Hanyang and
the 339-room Hilton Wuhan Riverside, the Wuchang. Emerging business centers such
Upcoming hotels 485-rooms InterContinental Wuhan and as the Wangjiadun CBD located in Hankou
The Ritz-Carlton Wuhan the 355-rooms Lianyou Peninsula Hotel & and Optical Valley located in Wuchang
Resort. From 2017 onwards, approximately are expanding and attracting investment
Fairmont Wuhan 7,800 rooms remain in the pipeline. A with an increasing number of international
St. Regis Wuhan growing number of international brands companies looking to setup in central
are expected to establish a presence in China. We anticipate corporate and leisure
Edition Wuhan Wuhan in the coming years, such as The demand to grow but the large supply
Grand Hyatt Wuhan Hankou Ritz-Carlton, Fairmont and Grand Hyatt. pipeline is concerning and detrimental to
room rate growth.
Note: Wuhan refers to Marketwide hotels
Source: STR Global (YTD Feb 2017), Wuhan Statistics Bureau, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - OccupancyHotel Destinations - Greater China 15
Xi’An
Quick Facts
International Visitor Arrivals (2015) Number of New Rooms (2016) ADR RevPAR OCC
1.1 million 851 rooms RMB 618 RMB 326 52.8%
Tourism Demand New notable hotels
Last year, data from Xi’an’s Statistics Xi’an’s hotel market is mainly driven by Hyatt Regency Xi’an
Bureau’s reported solid growth on corporate demand. Business activities 300 rooms
the city’s total arrivals, with a 10.4% related to the city’s core tertiary industry
Hilton Garden Inn Xi’an Hi-Tech
increase reaching 150.1 million visitors. including finance, technology, professional
Zone
Consequently, total tourism revenue services and trade generate solid MICE
276 rooms
in 2016 also grew by 13.1%. Whilst demand. As Xi’an is fast becoming a
international tourism accounts for an tourism destination for native Chinese Novotel Xi’an SCPG
overall minor component of total inbound with its abundant historical sites as well as 275 rooms
visitors, the historic nature of the city natural resources, leisure demand is also
continues to attract native visitors. accounts for many room nights per year.
Notable hotel deals
There were no hotel transactions in
Supply Outlook
H2 2016
Just three hotels with 851 rooms opened Given its location at the start of the Silk
in Xi’an last year, one property positioned Road Economic Belt, Xi’an’s hotel market
as an upscale hotel. Due to recent trading benefits from ongoing city development
underperformance and oversupply, the and transportation infrastructure
level of new hotel openings has fallen. We improvements. Seven high-speed railways
Upcoming hotels
are monitoring almost 7,000 rooms in the connecting Xi’an to Chongqing, Wuhan, HUALUXE Xi’an Hi-tech Zone
supply pipeline over the next five years Yinchuan, Chengdu, Lanzhou, Taiyuan
although it remains highly doubtful that and Baotou are in construction, and will HUALUXE Xian Daming Palace
half of this stock will eventuate. significantly enhance Xi’an’s accessibility Banyan Tree Lishan
from the north and west of China. Future
corporate demand is expected to gradually The Ritz-Carlton Xi’an
extend from Yanta District to Weiyang W Hotel Xi’an
District.
Note: Xi’an refers to Marketwide hotels
Source: STR Global (YTD Feb 2017), Xi’an Statistics Bureau, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy16 Hotel Destinations - Greater China
Zhengzhou
Quick Facts
International Visitor Arrivals (2015) Number of New Rooms (2016) ADR RevPAR OCC
473,000 million 292 rooms RMB 571 RMB 331 57.9%
New notable hotels Tourism Demand
Wanda Vista Zhengzhou According to the Zhengzhou Tourism Zhengzhou’s hotel demand is driven by
292 rooms Bureau, at the end of 2015, the city’s business travel as well as MICE demand.
domestic arrivals reached 86.3 million, After Foxconn Technology Group set up
growing by 11.7% compared with the its factory in Zhengzhou Technology Park
previous year. International arrivals in 2012, a large number of digital product
increased 4.3% y-o-y to 473,000. High related businesses and trading activities
speed railways connect Zhengzhou to have driven corporate demand. A steady
all parts of the Mainland with intercity stream of corporate and MICE demand
accessibility, which has resulted in a rise of also stems from the city’s core industries
domestic visitors. including automotive and pharmaceutical
industries.
Notable hotel deals
There were no hotel transactions in
Supply Outlook
H2 2016
The 292-rooms Wanda Vista Zhengzhou Although a large number of new rooms will
was the sole completion in 2016. Existing come into the market in the medium term,
hotel supply is mainly concentrated we expect performance to show some
in city’s core business areas of Longhu steady growth. Two high speed railways
Upcoming hotels CBD, Zhengdong CDB, Jinshui Road connecting Zhengzhou to Chongqing and
Fairmont Zhengzhou and Erqi commercial center. From 2017 Zhengzhou to Hefei will be completed in
onwards, approximately 4,700 rooms are 2019 and 2020, respectively, and further
Hotel Indigo Zhengzhou proposed, almost double the existing room enhance Zhengzhou’s accessibility to
Shangri-La Zhengzhou inventories. However, investors are paying the southeast and southwest of China,
closer attention to this emerging city and helping generate more room demand. An
Radisson Blue Zhengzhou we expect more international brands will increasing number of commercial buildings
New World Hotel Zhengzhou enter Zhengzhou with the city’s broader are to be added to Zhengzhou’s CBD and
development and long term potential. High Speed Railway Station Commercial
Centres which will drive the need for room
demand from the corporate segment.
Note: Zhengzhou refers to Marketwide hotels
Source: STR Global (YTD Feb 2017), Zhengzhou Statistics Bureau, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - OccupancyGreater China
Key destinations
Shenyang
Beijing
Tianjin
Xi’an
Chengdu
Wuhan Shanghai
Chongqing Hangzhou
Taipei
Guangzhou
Shenzhen
Hong Kong
Macau
Sanya18 Hotel Destinations - Greater China
Key Contacts
Scott Hetherington David Marriott
Chief Executive Officer Senior Vice President
Asia Strategic Advisory
Scott.Hetherington@ap.jll.com Greater China
David.Marriott@ap.jll.com
Nihat Ercan Phoebe Teo
Executive Vice President Senior Vice President
Investment Sales Strategic Advisory
Asia Greater China
Nihat.Ercan@ap.jll.com Phoebe.Teo@ap.jll.com
Frank Sorgiovanni
Head of Research
Asia Pacific
Frank.Sorgiovanni@ap.jll.com
About JLL Hotels & Hospitality Group
JLL’s Hotels & Hospitality Group has completed more transactions than any other hotels and hospitality real estate advisor over the
last five years, totalling more than $68 billion worldwide. Between negotiating the world’s most extraordinary, enticing, and profitable
property deals, the group’s 350-strong global team also closed more than 4,400 advisory, valuation and asset management assignments.
Investors worldwide turn to JLL to shape their strategies, tailor their portfolios and maximise the value of their assets. We are recognised
as the global leader in real estate services across hospitality properties of all shapes and sizes. Our expert advice is backed by industry-
leading research. We apply our broad spectrum of hotel valuation, brokerage, asset management and consultancy services through every
phase of the hotel lifecycle. We have helped more hotel investors, owners and operators achieve high returns on their assets than any
other real estate advisor in the world. Whether you are looking for a hotel or you’re ready to sell, we’ll use our capital markets expertise,
hospitality industry knowledge and global relationships to put the right parties together and execute a bespoke deal that exceeds your
objectives.
To find out more, talk to JLL.
www.jll.com/hospitalitywww.jll.com/hospitality Jones Lang LaSalle © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
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