COVID-19 coronavirus impact on luxury hotels in selected cities in China H1 2020
The hotel industry in China faced a significant setback resulting from the coronavirus outbreak. In the first half of 2020, the average occupancy rates of luxury hotels in Beijing dropped by 71.4 percent compared to the previous year, while the RevPAR decreased by 74.8 percent. High-end hotels in Sanya, a popular tropical vacation spot among high-end travelers, experienced only a 4.5 percent loss of average room price compared to the previous year.
Hotel business in the pandemic
2020 has proven to be a gloomy year for hotel operators. The pandemic outbreak caused most Chinese New Year travel and tourism to be cancelled, a market generating more than half a trillion yuan in revenue each year. Due to the nationwide lockdowns and travel restrictions, hotels in China recorded a decrease in occupancy rates of nearly 80 percent in February 2020.
Revival and recovery
While the rest of the world still struggles with the spiraling number of coronavirus infections, China has slowly recovered its tourism. One survey showed that more than 80 percent of Chinese were eager to travel in the second half of 2020. The growing demand for domestic travel also brought life to the hotel industry in China. Quarterly revenue saw a bounce-back in the third quarter of 2020 and the majority of hotel enterprises expected China's accommodation industry to recover six months after the pandemic ends.
Hotel business in the pandemic
2020 has proven to be a gloomy year for hotel operators. The pandemic outbreak caused most Chinese New Year travel and tourism to be cancelled, a market generating more than half a trillion yuan in revenue each year. Due to the nationwide lockdowns and travel restrictions, hotels in China recorded a decrease in occupancy rates of nearly 80 percent in February 2020.
Revival and recovery
While the rest of the world still struggles with the spiraling number of coronavirus infections, China has slowly recovered its tourism. One survey showed that more than 80 percent of Chinese were eager to travel in the second half of 2020. The growing demand for domestic travel also brought life to the hotel industry in China. Quarterly revenue saw a bounce-back in the third quarter of 2020 and the majority of hotel enterprises expected China's accommodation industry to recover six months after the pandemic ends.
