Hotel properties in China continue to defy the unstable economy, with revenue per available room (RevPar) climbing 2.8 percent for the year to November last year compared to the same period 2010.

According to figures released by STR Global, the growth comes despite limited new supply, with the majority of the increase coming from secondary cities like Xiamen and other destinations in southeast and southwest China.

The report found that Xiamen saw demand grow 30.8 percent during the period compared to the same 11 months in 2010 while southeast China’s Chengdu saw guests grow 20.3 percent.

Meanwhile occupancy fell 4.1 percent in steel manufacturing province, Hubei while world heritage city, Hangzhou saw guests drop eight percent.

"Hotel development by international and regional hotel chains over recent years has focused more and more on secondary cities across China", STR Global managing director Elizabeth Randall explained.

"This development reflects the growing importance of these markets as economic centres and demand generators for inbound and outbound visitors.

“In 10 out of 15 cities, demand grew at higher rates than supply; however, the right balance between supply and demand will be crucial to the future success of hotels in these markets.”

Source:etravelblackboardasia