According to preliminary data from STR, mainland
China’s daily hotel occupancy reached an absolute level of 31.8%
on 28 March, up from a low of 7.4% during the first week of
Additionally, opening rates have been significant
in key markets across the region.
“We’re seeing green shoots in hotel occupancy
figures, but we must stress that these are only early signs of a
recovery that is likely to develop slowly,” said Christine Liu,
STR’s regional manager for North Asia. “Some of the demand stems
from corporate travel, primarily within the same province, as well
as small-scale meetings. Additionally, hotels are seeing business
from those travelers quarantined after returning to China from
other countries as well as those returning to cities for work.
Overall, we’re seeing limited leisure business in city centers but
a bit more recovery in that segment in surrounding suburbs.”
In Beijing, daily occupancy sat around 10% for
most of the first week of March, but climbed to as high as 21.6%
on 28 March. Shanghai was as low as 11% on 1 March but reached
28.6% on 28 March.
Among the key STR-defined markets for
Mainland China, the highest absolute occupancy levels have been
seen in Xi’an (35.9% on 28 March) and Chengdu (35.6% on 28 March).
“Xi’an captured business from South Korea because
of Samsung’s manufacturing factory in the tech zone—expatriates
were able to relocate their families to Xi’an when the outbreak
hit South Korea,” Liu said. “Additionally, Xi’an is one of the
redirect destinations for inbound flights scheduled to land in
The occupancy trend line in Wuhan has taken a much
different path. Occupancy in the city fell to as low as 7.5% on 23
January, jumped to a high of 72.7% on 7 March, and has since
trended downward to 62.4% on 28 March.
“Wuhan saw an influx of hotel demand as medical
workers entered the market, but some of that demand has tailed off
as the situation becomes more stable,” Liu said.
Another positive for the industry, is that
87% of the hotels in STR’s Mainland China sample are now open after
many had closed over the last two months.