CONSUMING
The emerging economic superpower is a focal point for nearly every major hotel company , but can the massive inventory influx be absorbed ?
CHINA
By Adam Kirby , contributing editor
The world ’ s hottest hotel development market shows few signs of cooling off , even as performance numbers in China ’ s major markets are relatively chilly . While analysts , hoteliers and development executives agree 2012 is likely to be another underwhelming year for occupancy and ADR in China , they are nearly unanimous that the country ’ s fundamentals remain strong longer term .
International brands opened a hotel in China every four days in 2011 , with more than 84,000 internationally branded guestrooms set to open in China ’ s 30 biggest markets between the end of 2010 and 2013 , according to Jones Lang LaSalle Hotels ( JLLH ) China . China has a pipeline of about 172,000 guestrooms in various stages of development , which would represent an increase of 13.4 % over existing inventory .
Rising operating costs across the country are pressuring margins , but analysts believe long-term demand fundamentals will allow hoteliers to weather near-term performance challenges . Global
28 HOTELS January / February 2012 www . hotelsmag . com