Dublin, May 16, 2025 (GLOBE NEWSWIRE) — The “China Hotel Market Size and Share Analysis – Growth Trends and Forecast Report 2025-2033” report has been added to ResearchAndMarkets.com’s offering.
The China Hotel Market is expected to reach US$ 170.40 billion by 2033 from US$ 83.63 billion in 2024, with a CAGR of 8.23% from 2025 to 2033
Increased domestic travel, increased disposable income, urbanization, government tourism promotion programs, better infrastructure, and the expansion of foreign business travel are the main factors propelling China’s hotel market.
Over the past decade, China’s hospitality industry has grown exponentially. Numerous international hotels, including the largest hotel groups in the world, have been attracted by the politically and socially stable country’s potential enormous market, rapid economic development, vast population, and rich natural resources. The China Hotel Market is growing due to the increased number of affluent Chinese travelers traveling more domestically as well.
Rising domestic tourism, facilitated by a rising middle class and higher disposable incomes, is one of the factors driving China’s hotel business growth. Urbanization and infrastructure development enhance accessibility, and the government schemes promote tourism. Growth and diversification of the industry are also supported by the rising global business travel market, as well as by the emergence of domestic and international hotel chains.
Growth Drivers for the China Hotel Market
Rising domestic tourism
The Chinese hotel market is growing largely as a result of a rise in domestic tourism. Domestic travel in China is becoming increasingly popular as the middle class expands, with more individuals seeking business and leisure opportunities. As the second-largest country to travel the world, China comes right behind the United States, and with $1.3 trillion of the country’s GDP in 2023 attributed to the travel and tourism sector, it points to just how much potential there is for the hotel industry to grow.
This rise was largely attributed to the lifting of travel limitations after the pandemic. The 2024 Economic Impact Trends Report of the World Travel & tourist Council reports that China’s tourist sector saw an incredible recovery, growing by 135.8%. This incredible recovery indicates domestic travel is sharply on the way up, with people visiting domestic locations and recreation spaces more often across.
As travelers seek a variety of accommodations, from budget hotels to luxury resorts, demand for accommodations has increased, which has benefited China’s hotel sector to grow and diversify. Besides increasing investment in new hotels, the growth in domestic tourism also makes the sector more competitive as a whole.
Improved infrastructure
China’s hospitality industry is growing extensively because of better infrastructure. It has never been easier to access major cities and remote tourist destinations because of ongoing investments in transportation systems, such as high-speed train, airports, and highways. Domestic and international tourists can travel more conveniently because of this enhanced connectivity, which boosts demand for accommodations throughout.
For example, in October 2022, Wyndham Hotels and Resorts launched two hotels in the region: Wyndham New Taipei Linkou and Wyndham Sun Moon Lake, with Qingyu Property Co. Ltd. and Lijing Enterprise Co. Ltd. This is a testament to the fact that improved infrastructure encourages hotel expansion.
Infrastructure expansion underpins a competitive and varied hotel industry by creating an environment for international hotel chains to enter the market as well as for regional firms to develop. China’s tourism and hospitality sectors are significantly affected by this expansion in infrastructure.
Expanding presence of global hotel brands
International hotel brands’ expansion is one of the key drivers fueling the growth of the Chinese hotel market. International hotel chains are opening up in China as the business and tourism sectors of the country grow in a bid to cater to the increasing demand for luxury and mid-range accommodation. These global firms attract domestic and international tourists with their advanced service models, innovation, and global standards.
One such example was seen in September 2022, when the U.S.-headquartered InterContinental Hotels Group (IHG) marked the opening of Kimpton Bamboo Grove Suzhou, its 600th hotel in Greater China. The Grove, the hotel’s signature Chinese restaurant, offers a mix of Chinese and Western dishes and has 179 rooms. Global players are increasingly finding China’s hotel industry attractive, as seen from the continued expansion of global chains such as IHG. This adds competition and enhances the overall hotel experience in the area. This trend stimulates innovation and accommodates the evolving needs of China’s multicultural tourist segment.
Challenges in the China Hotel Market
Intense Competition
Due to the rapid expansion of both domestic and foreign hotel brands, China’s hotel sector is extremely competitive. In order to draw clients, hotels must set themselves apart from the competition with distinctive offerings, well-chosen locations, and customized experiences. In addition to forcing hotels to constantly innovate, this intense rivalry fuels pricing wars that have an effect on profitability. The complexities of the market are further heightened by the fact that international chains, which carry with them established reputations and international standards, must contend with local brands.
Overcapacity
In China’s hotel industry, overcapacity is a major problem, particularly in some areas where fast development has resulted in an excess of available hotel rooms. Profitability is impacted by this saturation since it lowers occupancy rates and increases price competitiveness. Businesses may find it difficult to stand out in places where there are more hotels than there is demand, which could result in price reductions and lower profits. Overcapacity can also make it harder for new competitors to get a footing in a market that is already overflowing with choices.
Key Players Analyzed
- Marriott International Inc.
- Huazhu Hotels Group Ltd
- Zhejiang New Century Hotel Management Co. Limited
- Expedia Group Inc.
- Guangdong International Hotel Management Holdings Ltd.
- Huangshan Tourism Development Co. Ltd.
- InterContinental Hotels Group PLC
- Shanghai Jin Jiang International Hotels (Group) Company Limited
- Tongcheng Travel Holdings Ltd.
- Emei Shan Tourism Co.,Ltd
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 200 |
| Forecast Period | 2024 – 2033 |
| Estimated Market Value (USD) in 2024 | $83.63 Billion |
| Forecasted Market Value (USD) by 2033 | $170.4 Billion |
| Compound Annual Growth Rate | 8.2% |
| Regions Covered | China |
Key Topics Covered:
1. Introduction
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Growth Drivers
4.2 Challenges
5. China Hotel Market
6. Market Share Analysis
6.1 By Type
6.2 By Business Model
6.3 By Sales Channel
6.4 By End User
6.5 By Age Group
6.6 By Gender
6.7 By Star Rating
7. Type
7.1 High-End
7.2 Mid-End
7.3 Budget
8. Business Model
8.1 Chain
8.2 Independent
9. Sales Channel
9.1 Offline
9.2 Online
10. End User
10.1 Leisure FIT & Group
10.2 Corporate
10.3 MICE
10.4 Others
11. Age Group
11.1 18-24 years
11.2 25-34 years
11.3 35-44 years
11.4 45-54 years
11.5 55-64 years
12. Gender
12.1 Male
12.2 Female
13. Star Rating
13.1 1 Star
13.2 2 Star
13.3 3 Star
13.4 4 Star
13.5 5 Star
14. Porter’s Five Forces Analysis
14.1 Bargaining Power of Buyers
14.2 Bargaining Power of Suppliers
14.3 Degree of Rivalry
14.4 Threat of New Entrants
14.5 Threat of Substitutes
15. SWOT Analysis
15.1 Strength
15.2 Weakness
15.3 Opportunity
15.4 Threat
16. Key Players Analysis
For more information about this report visit https://www.researchandmarkets.com/r/3fo9ta
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