Page 310 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
top franchise companies in China’s construction variance outbreak, impacting more than half of
pipeline reached record highs during the second the country’s provinces and municipal regions,
quarter. Hilton Worldwide hit a record-high of 634 was significantly more widespread than the Delta
projects as well as a record-high count of 120,697 variant outbreak in Guangdong’s in late spring
rooms; InterContinental Hotels Group (IHG) also 2021. Even that smaller outbreak earlier in the
reached a record-high of 444 projects, accounting year took longer to recover from than prior case
for 92,342 rooms; and Marriott International saw an surges in China. The weaker effectiveness of
all-time high of 394 projects/105,961 rooms. Next Chinese vaccines like Sinovac compared to those
was JinJiang Holdings, with 218 projects/21,394 from companies like Pfizer and Moderna helped
rooms, and Accor with 183 projects/32,839 rooms. fuel the rapid spread. China responded to the
These five companies made up an impressive late summer outbreak with another round of
54% of projects and 56% of rooms in China’s total lockdowns and travel advisories, but they were
hotel construction pipeline. The leading brands more widespread this time compared to the more
in the construction pipeline for these companies concentrated Guangdong outbreak. Those tough
are Hilton’s Hampton by Hilton with a record- measures, coupled with China’s essentially sealed
high of 362 projects/55,084 rooms; IHG’s Holiday international borders and strong domestic travel
Inn Express also reached record-high counts this base, played a major part in hotel companies
quarter with 209 projects/34,788 rooms; JinJiang’s seeing their strongest performance in China for
7 Days Inn brand with 102 projects/8,031 rooms; a bulk of the pandemic. But the longer snap back
Accor’s Ibis brands with 66 projects/6,976 rooms; from the Guangdong outbreak and the additional
Marriott International’s Marriott Hotel brand cases countrywide was a fresh reminder the
closed the quarter with 63 projects/19,130 rooms. recovery from the pandemic is extremely
China’s new hotel openings in the first half of 2021 uncertain, even in countries with the most
were 221 hotels/37,227 rooms, with a record low stringent containment efforts. It also served as a
of 82 projects/15,507 rooms opening during the wake-up call for a hotel industry that appeared
second quarter. In the years following, 984 new overly optimistic about its recovery trajectory in
hotel openings with 158,810 rooms are expected in spite of rising cases around the world (Sperance).
2022 and 735 projects/147,278 rooms in 2023 (LE).
Works Cited
The industry’s news was not all rosy in 2021.
In July, part of a hotel collapsed in the Chinese CD. “China Still Driving Global Growth in
city of Suzhou killing at least eight people. The
Siji Kaiyuan Hotel in the coastal city was a budget 2021: Media.” Chinadaily.com.cn, 18 May
hotel that opened in 2018. The part that collapsed
was three stories tall. An online booking site said 2021, www.chinadaily.com.cn/a/202105/18/
the hotel had 54 rooms (Reuters).
WS60a35a9ba31024ad0babfbde.html.
That wasn’t all. The industry took a massive
fall in August 2021 in its hospitality comeback CD. “Faster Vaccination in China a Boost to
due to the Delta variant. Prior industry optimism Asian Recovery: Media.” Chinadaily.com.cn, 2
about the country’s ability to quickly rally after a June 2021, global.chinadaily.com.cn/a/202106/02/
setback doesn’t seem to apply this time around. WS60b714d2a31024ad0bac3168.html.
Average occupancy rates across Mainland China
fell from 70 percent to just shy of 40 percent in CD. “Who's Approval of Chinese Vaccines
a matter of two weeks. Revenue per available
room, the hotel industry’s key performance Would Expand Scope for Their Use: China
metric, was roughly half of 2019 levels. The swift
descent stemmed from the country’s tough Daily Editorial.” Chinadaily.com.cn, 28 Apr.
crackdown policies and travel restrictions, which
led economists to lower expectations on the 2021, global.chinadaily.com.cn/a/202104/28/
country’s economic recovery trajectory The Delta
WS6089531aa31024ad0babb12d.html.
Chen, Jia. “Economists Concerned over Effects
of Us Relief Package.” Chinadaily.com.cn, 15 Mar.
2021, www.chinadaily.com.cn/a/202103/15/
WS604e99f4a31024ad0baaf0d7.html.
310
top franchise companies in China’s construction variance outbreak, impacting more than half of
pipeline reached record highs during the second the country’s provinces and municipal regions,
quarter. Hilton Worldwide hit a record-high of 634 was significantly more widespread than the Delta
projects as well as a record-high count of 120,697 variant outbreak in Guangdong’s in late spring
rooms; InterContinental Hotels Group (IHG) also 2021. Even that smaller outbreak earlier in the
reached a record-high of 444 projects, accounting year took longer to recover from than prior case
for 92,342 rooms; and Marriott International saw an surges in China. The weaker effectiveness of
all-time high of 394 projects/105,961 rooms. Next Chinese vaccines like Sinovac compared to those
was JinJiang Holdings, with 218 projects/21,394 from companies like Pfizer and Moderna helped
rooms, and Accor with 183 projects/32,839 rooms. fuel the rapid spread. China responded to the
These five companies made up an impressive late summer outbreak with another round of
54% of projects and 56% of rooms in China’s total lockdowns and travel advisories, but they were
hotel construction pipeline. The leading brands more widespread this time compared to the more
in the construction pipeline for these companies concentrated Guangdong outbreak. Those tough
are Hilton’s Hampton by Hilton with a record- measures, coupled with China’s essentially sealed
high of 362 projects/55,084 rooms; IHG’s Holiday international borders and strong domestic travel
Inn Express also reached record-high counts this base, played a major part in hotel companies
quarter with 209 projects/34,788 rooms; JinJiang’s seeing their strongest performance in China for
7 Days Inn brand with 102 projects/8,031 rooms; a bulk of the pandemic. But the longer snap back
Accor’s Ibis brands with 66 projects/6,976 rooms; from the Guangdong outbreak and the additional
Marriott International’s Marriott Hotel brand cases countrywide was a fresh reminder the
closed the quarter with 63 projects/19,130 rooms. recovery from the pandemic is extremely
China’s new hotel openings in the first half of 2021 uncertain, even in countries with the most
were 221 hotels/37,227 rooms, with a record low stringent containment efforts. It also served as a
of 82 projects/15,507 rooms opening during the wake-up call for a hotel industry that appeared
second quarter. In the years following, 984 new overly optimistic about its recovery trajectory in
hotel openings with 158,810 rooms are expected in spite of rising cases around the world (Sperance).
2022 and 735 projects/147,278 rooms in 2023 (LE).
Works Cited
The industry’s news was not all rosy in 2021.
In July, part of a hotel collapsed in the Chinese CD. “China Still Driving Global Growth in
city of Suzhou killing at least eight people. The
Siji Kaiyuan Hotel in the coastal city was a budget 2021: Media.” Chinadaily.com.cn, 18 May
hotel that opened in 2018. The part that collapsed
was three stories tall. An online booking site said 2021, www.chinadaily.com.cn/a/202105/18/
the hotel had 54 rooms (Reuters).
WS60a35a9ba31024ad0babfbde.html.
That wasn’t all. The industry took a massive
fall in August 2021 in its hospitality comeback CD. “Faster Vaccination in China a Boost to
due to the Delta variant. Prior industry optimism Asian Recovery: Media.” Chinadaily.com.cn, 2
about the country’s ability to quickly rally after a June 2021, global.chinadaily.com.cn/a/202106/02/
setback doesn’t seem to apply this time around. WS60b714d2a31024ad0bac3168.html.
Average occupancy rates across Mainland China
fell from 70 percent to just shy of 40 percent in CD. “Who's Approval of Chinese Vaccines
a matter of two weeks. Revenue per available
room, the hotel industry’s key performance Would Expand Scope for Their Use: China
metric, was roughly half of 2019 levels. The swift
descent stemmed from the country’s tough Daily Editorial.” Chinadaily.com.cn, 28 Apr.
crackdown policies and travel restrictions, which
led economists to lower expectations on the 2021, global.chinadaily.com.cn/a/202104/28/
country’s economic recovery trajectory The Delta
WS6089531aa31024ad0babb12d.html.
Chen, Jia. “Economists Concerned over Effects
of Us Relief Package.” Chinadaily.com.cn, 15 Mar.
2021, www.chinadaily.com.cn/a/202103/15/
WS604e99f4a31024ad0baaf0d7.html.
310
