Foreign hotel brands are developing lower-end properties to capture more customers.
San Francisco, CA (PRWEB) March 10, 2013
In the five years through 2013, the Hotel industry in China has been growing 6.9% on average to an estimated $44.1 billion. Growth has been driven by greater numbers of domestic and international tourists, says IBISWorld. Higher room prices and industry deregulation have also contributed to the industry’s development.
The concentration level of the Hotel industry in China is very low with the top four players – Shangri-La, InterContinental, Guangdong (International) Hotel Management Holdings, and Shanghai Jinjiang International Hotels Development – accounting for less than 5.0% of total revenue. Overall, there is a trend toward consolidation among hotel management enterprises and toward a growth in scale. However, in the long-term IBISWorld expects concentration to remain relatively low.
Foreign enterprises have a significant impact on the industry's development, and have introduced brand and chain management concepts and high service standards to China. They have strong and dominant positions in the high-end market, but have recently started moving into the lower-star rated segments. Many foreign hotel management companies have started developing hotels with four- and three-star ratings to capture a larger spectrum of customers and strengthen market positions.
The Hotel industry will continue to expand, driven by rapid growth in China's economy and the development of the tourism sector. Demand growth is projected in terms of the number of tourists and of average per-guest expenditure. IBISWorld also anticipates growth in the share of revenue contributed by three- and four-star hotels.
For more information, visit IBISWorld’s Hotels in China industry report page.
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IBISWorld industry Report Key Topics
Hotels in China provide accommodation services at the required state standards and quality. Hotels and resorts are licensed to provide accommodation on a room or suite basis. Bathrooms and other facilities are present in most guest rooms.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.