The coronavirus outbreak in 2020 has been a severe challenge for the hotel industry in China, putting the risk management capability of each operating hotel to the test. While from the perspective of hotel investment and asset management, the industry will recover from the downturn eventually, the impact of this outbreak will force investors to reconsider their strategic planning in hotel investment and in asset management. Horwath HTL launched a survey regarding hotel investment and asset management related issues and compiled 15 key trends for the hotel investment and asset management industry in China based on an in-depth analysis of the survey results.
Existing asset renovation is the new trend
After 20 years of rapid growth, China’s hotel market has gradually entered an era that focuses more on renovating existing assets.
Top cities for existing asset renovation: first-tier cities, and new first-tier cities
With robust economic activities, active investment scenes, and solid demand forces, first-tier and new first-tier cities have been the top choices for hotel investors.
Hot spots for existing asset renovation: mature commercial zones
The key focus of existing asset renovation: upscale and upper midscale hotel properties
Most respondents in this survey are owners or investors with solid financial strength who adopted an asset-heavy strategy.
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