China’s hotel market to reach US$ 166 billion by 2028

Ever since China reopened its international borders earlier this year after the three-year-long pandemic-induced lockdown, there has been a notable increase in both hotel demand and flight searches. The burgeoning middle class with increased travel ambitions and higher disposable income has helped hotel construction and investmen. The hotel market in China is expected to reach $166.02 billion by 2028, growing at a CAGR of 8.86% from 2022 to 2030, according to the by ResearchandMarket.com.

According to the report, one of the major catalysts in the revival of the country’s hotel demand is the hosting of big international events, which resulted in substantial infrastructure development and investments in the hotel sector. As the hotel market continues to evolve, new hotel brands are catering to varied consumer demands, enabling a “multi-dimensional market landscape.”

Mid-range hotels in the country will remain popular in the coming years due to their mass appeal to business travelers, budget-conscious travelers and tourists. Mid-range hotels also have a good balance of quality and affordability and offer comfortable accommodations at a reasonable price point. The rising middle class and demand for affordable options fuel the demand for mid-scale hotel

Shanghai dominates China’s hotel market and generates high demand for hotel rooms. While China stayed close to international travelers, the domestic travel sector flourished. This significant domestic tourism has helped budget hotels cater to the growing demand, aided by competitive pricing and wide presence.

In terms of business models, the Chinese hotel market is divided into hotel chains and independent hotels. Hotel chains dominate the market – online booking ease, loyalty programs and round-the-clock customer service — make the booking and stay experience easy and hassle-free.

In terms of cities, China’s hotel market mainly comprises Beijing, Shanghai, Guangzhou, Shenzhen, Hong Kong, Macau and others as the top cities Considering its status as a significant economic and financial center that brings in considerable business travel, Shanghai dominates the country’s hotel market and generates high demand for hotel rooms. The city’s popularity as a tourist destination is also due to its famous attractions, which results in a constant flow of tourists and increased demand for hotel rooms.

Shanghai also serves as a major transportation hub, which further increases the demand for rooms. Moreover, the city’s large population and robust economy enable a steady market for hotels, which ensures a constant flow of travelers. Increasingly becoming a popular tourist destination, Guangzhou’s potential for growth is also driven by the number of attractions in the city.

Its strategic location and strong transport infrastructure enable easy access for international and domestic travelers, fueling the expansion of the hotel market. Government initiatives to promote tourism and investment in Guangzhou have further helped the creation of new attractions and business districts, opening up more opportunities for hotel expansion.