INVESTMENT
China i n v e s t m e n t
M & A SNAPSHOT
Contributed by JULIE DAI , HORWATH HTL , BEIJING
2021 Q2 Sentiment Score -14
14 First Half
-9
-12
14 Second Half
9
15 First Half
1
15 Second Half
18
16 First Half
3
16 Second Half
23 31 32 27
17 First Half
17 Second Half
18 First Half
As the Chinese market recovers from the pandemic , important trends have been noticed in the Mainland China market :
The market emerged from the downturn and showed a strong recovery : Since the COVID-19 outbreak in early 2020 , the global and Chinese hotel industries have experienced significant negative impacts . Thanks to the strong control measures of the Chinese government , the epidemic in the mainland of
18 Second Half
-9
19 First Half
-32
19 Second Half
Under the influence of Covid-19 outbreak
Source : 2021 Q2 China Hotel Market Sentiment Report , Published Quarterly by Horwath HTL China Note : To measure and compare hotel markets across different regions and cities in China , we created an index to formulate an overall average sentiment score from the survey data , to better reflect hoteliers ’ expectations toward the hotel market performance . The sentiment score ranges from negative 150 to positive 150 . A score of negative 150 indicates a state of absolute pessimism , a score of zero indicates neutral expectation , and a score of positive 150 indicates a highly optimistic prediction .
-116
Feb 2020
-88
Jun 2020
-40
Sep 2020
-47
Jan 2020
-14
Mar 2020
China has been controlled relatively quickly , thus supporting the strong recovery of the mainland hotel market . In the second half of 2020 , most markets across the country have entered the path of recovery . The chart below shows the changes in the sentiment score of the hotel market in Mainland China since the outbreak of the epidemic .
Domestic tourism demand shows the strongest recovery :
Due to the temporary closure of outbound tourism , domestic tourism has shown the strongest recovery , especially in popular resort and tourism destinations ( Hainan , Yunnan , Northeast China ). Particularly , high profile and luxury resort hotels located in these areas reported higher performance results in 2020 . In addition , suburb resorts with the three major economic circles ( the Yangtze River Delta ( YRD ), the
52 hotelsmag . com July / August 2021