In 2020, Chengdu’s hospitality industry accounted for 65.7% of GDP, contributing 52.2% to the city’s economic growth and significantly increasing its contribution to the development of energy levels and economies.

In 2021, with the stabilization and control of the pandemic, and the steady recovery of the economy, the performance of Chengdu hotels has gradually reached 2019 levels.

Resilience of major urban markets

The development of cities is inseparable from the synergy of urban agglomerations. Since April 2021, the resilient Sichuan-Chongqing region has continued to lead hotel performance recovery in the country, reaching levels of revenue per available room (RevPAR) comparable with 2019. After the Labor Day holiday, the region continued to maintain its lead across the major urban agglomerations.

Source: STRSource: STR
Source: STR

Chengdu Deep Dive

The recovery of Chengdu is reflected in both occupancy and average daily rate (ADR). Since April, the overall occupancy and ADR of the market have exceeded the corresponding period in 2019. In May, Chengdu’s occupancy level was the same as in 2019. Thanks to the higher ADR rebound, RevPAR in May also saw a higher index based on the same period in 2019.

Source: STRSource: STR
Source: STR

Qingming Festival & National Sugar and Alcohol Commodity Fair

As the weathervane of the alcohol industry and the barometer of the food industry, the National Sugar and Alcohol Commodity Fair has been valued by sellers and experts all over the country. After being postponed last year due to the pandemic last year, the two-year rum and wine party brought a huge return of energy and became the largest and most active event in history. This year’s rum and wine party approached the impact of the Chingming Festival holiday and contributed to peak occupancy and ADR in April.

In April, the average occupancy level of the overall market in Chengdu reached 79%. Luxury and Upper Upscale hotels occupancy remained flat compared with the market average, and ADR rebounded quite significantly. Compared with non-pandemic years (2018 and 2019), both the overall market and the luxury/upper upscale segment in Chengdu reached pre-pandemic levels in ADR.

Source: STRSource: STR
Source: STR

Summer impact

During the summer months (July to August), the Chengdu hotel market showed a demand impact thanks to the balanced distribution of business and leisure tourists coupled with diverse tourism and holiday products. Weekends and weekdays have the same relatively stable performance with occupancy levels above 70%.

Source: STRSource: STR
Source: STR

Compared with the stable occupancy performance, ADR showed increases during summer and weekend periods. Historical data from 2017 through 2019, non-pandemic years, shows that the overall ADR in Chengdu during the weekends of August reached CNY430, the highest level for the second half of the year.

About STR

STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.