Domestic demand to drive China’s hotel market development

Knight Frank published Greater China Hotel Report 2016 that provides an in-depth analysis of the region’s hotel market and forecasts on 29 September.

In the first half of 2016 (1H 2016), the number of international visitors to the Mainland grew 3.8% year on year (YoY), while overnight international visitors increased 4.3% YoY, mainly as a result of efforts by the Chinese government in recent years to modernise transport infrastructure and upgrade tourist sites.

By mid-2016, Beijing continued to have the largest stock of five-star hotel rooms (over 38,000 rooms) among the six cities covered in the report.

In 1H 2016, Guangzhou was the only city that recorded positive Average Daily Rate (ADR) growth among the six cities, while Macau suffered from the largest decline in ADR, down 12.3%, because of abundant supply and intense competition.

In recent years, China's hotel market has faced increasing challenges. However, the market is set to continue growing and to benefit from a strong upsurge in domestic tourism in the medium to long term.

Looking ahead, David Ji, Director, Head of Research & Consultancy of Greater China at Knight Frank, expects hotel development in China to benefit from the strong upsurge in domestic tourism in the medium to long term. Meanwhile, international operators are expected to launch aggressive expansion drives across China.

Please click here to download the full report.

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Donna Gong

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Notes to Editors

Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank operates from over 400 offices, in 58 countries, across six continents. More than 13,000 professionals handle in excess of US$1.4 trillion (£921 billion) worth of commercial, agricultural and residential real estate annually, advising clients ranging from individual owners and buyers to major developers, investors and corporate tenants. These figures include Newmark Grubb Knight Frank in the Americas, and Douglas Elliman Fine Homes in the USA.

Knight Frank has a strong presence in the Greater China property markets, with offices in Hong Kong, Beijing, Shanghai, Guangzhou, Taipei and Macau, offering high-quality professional advice and solutions across a comprehensive portfolio of property services. For further information about the Company, please visit

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