Re-establishing the performance of the Chengdu hotel market

In 2020, Chengdu’s hotel industry accounted for 65.7% of GDP, contributing 52.2% to the city’s economic growth and significantly increasing its contribution to the development of energy levels and savings.

In 2021, with the stabilization and control of the pandemic, and the steady recovery of the economy, the performance of hotels in Chengdu gradually reached the levels of 2019.

Resilience of large urban markets

The development of cities is inseparable from the synergy of urban agglomerations. Since April 2021, the resilient Sichuan-Chongqing region has continued to lead the recovery in hotel performance in the country, reaching revenue levels per available room (RevPAR) comparable to 2019. After the Labor Day holiday, the region continued to maintain its lead through major urban centers.

Deep diving in Chengdu

Chengdu’s recovery is reflected in both occupancy rate and the Average Daily Rate (ADR). Since April, the overall occupancy rate and ADR of the market have exceeded the corresponding period in 2019. In May, the occupancy rate of Chengdu was the same as in 2019. Thanks to the higher rebound of ADR , RevPAR also saw a higher index in May based on the same period in 2019.

Qingming Festival and National Sugar and Alcohol Fair

As a weather vane of the alcohol industry and a barometer of the food industry, the National Sugar and Alcohol Fair has been appreciated by vendors and experts across the country. After being postponed last year due to last year’s pandemic, the two-year rum and wine festival brought a huge return of energy and has become the largest and most active event. Of the history. This year’s rum and wine night approached the impact of the Chingming Festival holiday and contributed to peak occupancy and ADR in April.

In April, the average occupancy rate of the entire Chengdu market reached 79%. The occupancy rate of luxury and upscale hotels remained stable compared to the market average, and ADR rebounded quite significantly. Compared to the years without a pandemic (2018 and 2019), the overall market and the luxury / high-end segment in Chengdu have reached pre-pandemic levels in ADR.

Impact of summer

During the summer months (July to August), the Chengdu hotel market has shown an impact on demand through the balanced distribution of business and leisure tourists coupled with a diversity of tourism and vacation products. Weekends and weekdays have the same relatively stable performance with occupancy rates above 70%.

Compared to stable occupancy performance, ADR showed increases during summer and weekend periods. Historical data from 2017 to 2019, non-pandemic years, shows that the overall ADR in Chengdu during weekends in August reached 430 CNY, the highest level for the second half of the year.

About STR

STR provides benchmarking data, analysis and high-end market insights for the global hospitality industries. Founded in 1985, STR is present in 15 countries with a North American headquarters in Hendersonville, Tennessee, an international headquarters in London and an Asia-Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of online commercial real estate information, analysis and markets. For more information, please visit str.com and costargroup.com.