Fuelled by the rising number of tourists and international events held in the destination, Shanghai’s top tier hotel sector is seeing a boom, according to a report by the hotel investment services group Jones Lang LaSalle.
The group said Shanghai’s five-star hotel properties turned in a strong performance in 2004, achieving an average occupancy of 80 per cent with average room rate exceeding US$170. For the first quarter 2005, five-star hotels in Shanghai recorded an average occupancy of about 72 per cent with an average room rate of nearly US$190. Although the average occupancy rate was relatively unchanged from the same period in 2004, the number of five-star rooms have increased by 37 per cent.
“Shanghai’s top hotel room rate is already 61 per cent higher than that in Singapore and 53 per cent in Bangkok. We’re positive that by the end of year 2005, it will grow beyond the US$200 mark,” said Mr Michael Chin, executive vice-president for Greater China.
In comparison, Beijing’s upper tier hotel market recorded an average occupancy of around 68 per cent with an average room rate close to US$130 last year. For the first quarter 2005, five-star hotels in Beijing achieved an average occupancy of about 65 per cent with average room rates of around US$130.