China’s hotel sector shines, poised to outperform through 2026 on strong travel demand

International hotel chains ride China’s travel rebound, posting gains as domestic demand and inbound flows strengthen As US President Donald Trump makes a state visit to Beijing this week, international arrivals to China also jumped in the first quarter, fuelled by the country’s expanded visa-free entry policies for more countries. Four international hotel groups – Hilton Worldwide Holdings, InterContinental Hotels Group (IHG), Marriott International, and Hyatt Hotels – reported improved revenue per available room (RevPAR) performance on both quarterly and yearly bases, according to a research note by Deutsche Bank on Wednesday. RevPAR, a key industry metric, tracks a hotel’s ability to generate revenue from its entire room inventory. Hyatt posted a 12.4 per cent year-on-year RevPAR rise, while Marriott International and IHG both climbed 5.7 per cent, and Hilton added 1.3 per cent. Deutsche Bank attributed the growth to higher occupancy and average daily rates. The strong growth of international hotel chains in the first quarter came as China’s overall RevPAR outpaced the global average for the first time on record, Deutsche Bank said.

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