The business revenue of hotels in China showcased a steady growth from 2013 to 2019, reaching 434 billion yuan in 2019. A significant impact was observed in 2020 due to the pandemic, causing a sharp decline of 23.34%. However, the industry quickly rebounded with a 22.28% increase in 2021. As of 2023, the revenue stands at 463 billion yuan, reflecting an 8.36% year-on-year growth. The Compound Annual Growth Rate (CAGR) over the past five years (2018-2023) is 2.69%. Future forecasts from 2024 to 2028 indicate a CAGR of 2.1% and a total growth rate of 10.95% over five years.
Future trends to watch for:
- Continued recovery and growth post-pandemic
- Increased domestic tourism supported by government initiatives
- Rising middle-class and their travel expenditure
- Technological advancements in hotel management and customer service