Hotel investment in Mainland China has seen a surge in recent years, a practical guide from asset value exploration to efficient exit.

Between 2015 and 2024, cumulative hotel investment transactions in Mainland China reached RMB 168.54 billion, representing an average annual transaction volume of RMB 13.9 billion.

Recent macroeconomic headwinds and property sector deleveraging policies have compelled asset owners to divest non-core hospitality holdings, reducing interest-bearing liabilities while optimizing capital structures.

This strategic repositioning accelerated the release of trophy / landmark hotel assets into the market, attracting both domestic and offshore investors, thereby driving a countercyclical surge in transaction volume.

The ongoing transformation of China's real estate sector is driving a fundamental shift in hotel investment — from expansion-focused development to value optimization of existing assets. This transition necessitates a recalibrated investment rationale and valuation methodology.

At its core, the repositioning of assets in this inventory-dominated era represents a systemic advancement in value recognition and capital allocation efficiency.

Against this backdrop, hotel asset disposition strategies have evolved from transactional execution into holistic frameworks that integrate holding period management, value creation strategies and creative deal structuring.

“China Hotel Investment Guide: A Practical Guide from Asset Value Exploration to Efficient Exit” will focus on the core propositions of hotel investment and reveal the methodological framework for maximizing capital efficiency by analyzing critical aspects such as investment timing assessment, asset value reconstruction, and asset transaction model optimization.

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Authors:

• Tao Zhou, Head of Hotels & Hospitality, Greater China
• Junya Wei, Vice President, Investment Sales, Hotels & Hospitality Group, Greater China
• Tony Liang, Senior Vice President, Hotels & Hospitality Group, Greater China
• Chloe Zhang, Senior Associate, Investment Sales, Hotels & Hospitality Group, Greater China