STR Global, which provides hotel performance data to the industry, has launched two new markets in China – Hainan province and its southern resort city of Sanya. Hoteliers, developers and other companies will now be able to purchase hotel performance data for both these markets, with data being derived from 31 hotels in each market
The company noted that while occupancy in Hainan and Sanya has been relatively stable for the year-to-July 2011, demand has grown steadily during the last few years. Comparing demand growth for the first seven months of the year, Hainan saw a jump of 21.6% between 2009 and 2010, followed by 6.4% between 2010 and 2011. For Sanya the trend is similar with an increase of 18.4% between 2009 and 2010 and 9.6% between 2010 and 2011.
Such demand has seen gains in average daily rate (ADR) significantly in excess of the national average. While the percentage increases in ADR for Sanya (13.2%) are smaller than those for Hainan (23.5%), the absolute ADR of Sanya (CNY1,394 – approximately US$218) exceeds that of Hainan (CNY1,284), reflecting the number of upscale international brands now located in the resort city.
The strength of demand and the resulting revenue per available room (revPAR) has seen new supply reaching and being readied for the market. Hainan alone has 24 new hotels in its pipeline.
“With a big push coming from Beijing to promote the development of Hainan Island as a tourist destination, it was important for STR Global to be able to provide data on this market to hoteliers, developers, owners and investors,” said Elizabeth Randall, Managing Director of STR Global. “We are delighted so many of the island’s hotels recognise the clear value we add.”
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