China's Hotels Had a Weaker Golden Week

STR reported China hotel data for the week ended February 15. China hotel RevPAR was down -49.7% year over year, up against a +54.6% result in 2023. This decline for the week was due to the calendar shift for the Chinese New Year, as it was 1/28/25 versus 2/10/24. ADR was down -37.8% year over year for the week, while occupancy fell -19.2%.

CoStar/STR reported several Chinese cities saw positive hotel industry performance during the Spring Festival/Lunar New Year week with Shenzhen, Zhengzhou and Wuxi standing out. Overall, the market experienced a slight decrease in average daily rates but a more serious decline in occupancy led to overall RevPAR declining by -12% compared to the Golden Week in 2024. Mid-range, economy and luxury hotels displayed resilience. The latter half was better than the first half, clearly due to the start being a Tuesday versus Friday in the year-ago comp week. Overall, only 25% of secondary markets exceeded their prior occupancy levels with 28 surpassing last year's RevPAR. Among popular overseas destinations, Japan stood out, experiencing significant growth led by a rise in ADR.

Macau's January visitor arrivals amounted to 3.65 million, up 27.4% year on year. The surge was led by same-day trippers, with that volume rising by 45.6% to nearly 2.16 million. The number of overnight visitors in January rose 7.9% to nearly 1.49 million. About 75.4% of Macau's January visitors were from Mainland China. International visitors amounted to 241,131, up 21% year on year, with South Korea, the Philippines, and Indonesia being the top three source markets, in that order.

Langkawi, Malaysia's tourism industry saw a surge in arrivals during the recent school holidays. During the Chinese New Year and school holiday period, the increase in arrivals has given tourism officials and hoteliers optimism for the upcoming season to be even busier. Bookings at five- and four-star hotels are said to be brisk for the upcoming Langkawi International Maritime and Aerospace Exhibition. Ramadan may cause a decline, but a big rebound is expected. The Langkawi Chinese Chamber of Commerce believes many travelers are opting for Langkawi over budget-friendly destinations in Thailand. The Malaysian Association of Hotels said Langkawi has already seen a 5% increase in occupancy during the holidays, largely driven by an influx of tourists from India and Poland.

The ibis Styles Sepang KLIA in Kuala Lumpur, Malaysia, was officially launched this past Friday. The hotel was formerly Concorde Inn KLIA and is a joint venture between ISY Holdings Sdn Bhd and iKHASAS Group, both agreeing in 2019 to redevelop and rebrand the property with an investment of RM55 million. The resort hotel has 229 rooms spread across nine blocks. This is the nearest international brand hotel to the airport. The hotel includes 20 rooms described as biker rooms, catering to motorcycle enthusiasts. The property is managed by Accor Group.

Accor announced the upcoming launch of its newest addition to the Handwritten Collection, Hotel Snow Mountain Lijiang, set to open by the end of this year. The new property is located near the historic town of Shuhe and is being developed in collaboration with Beijing Huaxia Brothers Cultural Industry Group Co. Ltd. The Hotel Snow Mountain Lijiang – Handwritten Collection is four stories and will feature 100 guestrooms and suites. Premium amenities include a chic rooftop bar, a Chinese restaurant, multiple meeting rooms and a state-of-the-art fitness center.

Far East Hospitality Trust said they will make their first Japanese hotel acquisition. This follows the REIT expanding its investment mandate to include overseas properties while keeping its primary focus on Singapore. The company entered into a sale and purchase agreement with an unrelated third party to acquire the Four Points by Sheraton Nagoya, a freehold, 319-room hotel operated by Marriott International. The deal is expected to close on April 25. Far East will pay around six billion yen. The initial price represents a -23% discount to the hotel's value of 7.79 billion yen as of the end of 2024, below the replacement cost of 8.61 billion yen. Far East is also acquiring a Japanese joint-stock company, which will be the master lessee of the asset, for around 50 million yen. The hotel is within walking distance of the Chubu Centrair International Airport.

SET-listed SC Asset Corporation plans to rebrand and diversify into non-property businesses next year. They will also place greater focus on recurring-income ventures, particularly in the hotel and industrial estate sectors. In mid-2025, they will launch two new hotels – Kromo Bangkok near Sukhumvit Soi 29 and The Standard Pattaya in Na Jomtien, developed through joint ventures with Japanese property firm Daiwa House and contractor Syntec Construction, respectively.

Centre Point Group, a subsidiary of SET-listed developer Quality Houses, plans to upgrade its four hotels in Bangkok to the premium segment within three years. The group owns and operates five hotels in Bangkok and Pattaya under three brands – four-star Centre Point hotel; Centre Point Prime, focusing on prime tourism destinations; and Centre Point Plus, which is equivalent to 4.5 stars. Centre Point has invested 550 million baht to rebrand Centre Point Plus Silom and Centre Point Plus Pratunam, which were upgraded from Centre Point hotels.

Smart Homes Infrastructure has partnered with Marriott Hotels to introduce the first ever five-star hotel in Dholera, Gujarat in India. The upcoming 200-room luxury Courtyard by Marriott will be located at the Dholera International Plaza, a modern development aimed at transforming Dholera Smart City into a premier business, tourism and leisure hub. The hotel is strategically positioned near the Dholera International Airport. Dholera International Plaza will feature premium showrooms, corporate offices and recreational facilities.