Beijing hotel development is booming

2 years on from the Olympic Games and the city-wide frenzy of hotel building that went alongside it, Beijing hoteliers are celebrating a strong recovery despite fears of oversupply and competition from the Expo in Shanghai.

The hotel market in Beijing and China as a whole has improved significantly since 2009, that has helped galvanise the global hotel sector from crisis mode to slow growth. STR Global report occupancy rates in Beijing nearly doubled during June 2010 from the previous year, up 33.5 percent to 66.3 percent, while revenue per available room was up 41.2 percent to US$63.52 during the same period.

"The increase is due to a number of factors: the recovering Chinese and world economy, the stabilising supply increase and an increase in demand," said Konstanze Auernheimer, director of marketing and analysis at STR Global.