HONG KONG SAR – Media OutReach – October 19, 2023 – Cushman & Wakefield, one of the world’s leading real estate services firms, today released its Hotels – Discover neighborhood boutique hotels in mainland China report.
The general hotel market
Domestic tourism in mainland China
According to the latest data released by the National Bureau of Statistics (China) and the China Tourism Academy, in the first half of this year, the total number of domestic tourists reached 2.384 billion. This represents an increase of 929 million compared to the same period last year and represents annual growth of almost 64%. Among this group of people, approximately 1.859 billion visits were made by urban residents and approximately 525 million visits were made by rural residents, representing a year-over-year (year-over-year) increase. 70% and 44%, respectively.
Performance of all-star hotels in mainland China
Regarding the commercial performance of the hotel market, in the second quarter of 2023, the average room rate of all-star hotels in mainland China has already exceeded the market commercial performance observed in the pre-pandemic period, reaching 373 .79 RMB per night. At the same time, the revenue per available room increased from RMB 122.14 per night in 2022 to RMB 195.90, surpassing the level observed in 2019. Finally, the average occupancy rate also recorded an upward trend recording an increase of 38.35% in 2022. 2022 to 52.41% in the second quarter of this year.
Figure 1: Domestic tourism in mainland China (2013-H1 2023)
Source: National Bureau of Statistics (China), China Tourism Academy (Data Center of the Ministry of Culture and Tourism), Cushman & Wakefield Research
Figure 2: Comparison of business indicators of mainland China all-star hotels (2019-Q2 2023)
Source: Ministry of Culture and Tourism of the People’s Republic of China, Cushman & Wakefield Research
As the market recovers, all hotels are expected to benefit, including neighborhood boutique hotels. But before we continue, what exactly is a neighborhood boutique hotel?
What is a neighborhood boutique hotel?
Collectively, neighborhood boutique hotels are unique, intimate, small-inventory community hotels with a focus on design, history and/or culture. Level positioning is often a lesser consideration for neighborhood boutique hotels, as they focus on authenticity and personalization of the stay experience and service. Additionally, these hotels focus more on attracting beautiful experiences and associated factors, including but not limited to local nature and environment, local cuisine, local history, local culture and local art.
Figure 3: Neighborhood boutique hotels: sample features
Source: Cushman & Wakefield Research
Community engagement
For a neighborhood boutique hotel to stay true to its name, it is essential to establish a strong relationship with the local community. The benefits of local community engagement are numerous, including stronger business sustainability for the hotel and community, increased corporate social responsibility, increased environmental sustainability and reduced costs. For example, local sourcing reduces fuel consumption and air pollution. The ways to get involved are also numerous and some examples of how to connect are:
* Use locally;
* Use local products;
* Organization of local visits;
* Promoting local crafts;
* Highlight local culture, and;
* Promote local entertainment.
Shaun Brodie, Head of Research Content, Greater China, Cushman & Wakefield, said: “One of the important characteristics of a neighborhood boutique hotel is its uniqueness. Often this is achieved through style, practicality and attention to detail. The style should tell the story of the hotel and make it one of a kind. »
Andrew Chan, Managing Director, Head of Valuation and Advisory Services, Greater China, Cushman & Wakefield, said: “Neighborhood boutique hotels are a relatively new concept, but given the greater emphasis on the overall stay experience by a cross-section of hotel guests in mainland China, this type of hotel should be increasingly preferred for leisure and business stays. in the future.”
Francis Li, International Director, Vice President, Greater China, Head of Capital Markets, Greater China, Cushman & Wakefield, said: “Since the beginning of 2023, people’s willingness to travel for leisure in mainland China has strengthened, while the volume of business travel has increased rapidly. These two factors have contributed to a rebound in the performance of the general hotel market in mainland China. After the pandemic, people’s lifestyle has changed a lot, and along with this transformation, the hospitality and tourism industry will also usher in new changes and opportunities. »
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