As an important component of the Horwath Global Hotel Market Sentiment Survey, China Hotel Market Sentiment Survey has been designed to provide the China hotel industry with a quick assessment of the future market prediction.

For the first half of 2019, the overall sentiment score shows a decreasing trend and reaches a historical low point in the past 4 years.

Compared with the positive outlook in 2018, hoteliers’ view about the performance growth of the hotel market in 2019 exhibits a pessimistic attitude, and they are prepared to face the challenge.

From a regional perspective, only North China and Southwest China are beyond the national average and the sentiment score of North China ranks the top.

From a city perspective, most hoteliers are cautious about the growth of first-tier and second-tier cities, and only Beijing, Guangzhou, and Nanjing maintains positive sentiment scores.

From the perspective of performance indicators, the North region (North China, Northeast China and Northwest China) generally holds a negative attitude towards the growth of Occupancy, while the South region (East China, Central-South China and Southwest China) predicts ADR conservatively. Negatively affected by the low expectation in Occupancy and ADR growth, the sentiment score of total revenue drops to minus accordingly. 

Hence, the confidence of hoteliers is passively influenced by trade disputes between China and the United States, the global economic downturn, and tardy Chinese economic growth.

We suggest that although hoteliers are less confident about the hotel market growth in 2019, which can not be compared with the outstanding performance in the previous year, the actual operating performance will not decline significantly.

The market performance would likely drive steadily with cautious development, influenced by the agreement in Sino-US Economic and Trade Consultation, the in-depth implementation of national major strategic layout as well as the upgrading and optimization of industrial structure in all areas.

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