Focus market | Overview of Qingdao market performance Recovery

Entering 2021, the occupancy rate of the entire Mainland China hotel market has recovered significantly as far back as mid-March. As a key business travel and seaside leisure resort market in the northern region, the pace of demand recovery in Qingdao’s hotel market basically keeps pace with the average value of Mainland China.

After mid-March, with the loosening of the local government's management and control policies for large conferences, coupled with the effective drive of the Qingming Festival, the occupancy rate of Qingdao market continued to increase. From the data on workdays and weekends, both business and leisure demand showed a weekly recovery, with weekend leisure demand being a more powerful driver.

Qingdao Labor Day holiday performance

During the Labor Day holiday, Qingdao’s hotel market showed a strong recovery in occupancy rates. The peak occupancy day of the Labor Day holiday in 2019 was the second day of the holiday, and the city's occupancy rate reached 95.8%; the peak occupancy day of the Labor Day holiday in 2021 also occurred on the second day of the holiday, reaching 91.2%. 

Thanks to the one-day holiday this year, the number of days where the occupancy rate exceeded 80% was three days, and the overall income during the holiday period basically returned to the level of the same period in 2019.

All levels of hotels

Taking a closer look at the performance of various hotels during the Labor Day holiday, compared with the same period in 2019, in terms of occupancy index, mid-range and budget hotels declined slightly, while other grades basically maintained their levels in the same period in 2019. 

In terms of average price index, ultra-high-end hotels and mid-range and upper-end hotels have highlighted their ability to ensure their prices, increasing by 29% and 18% respectively compared with the same period in 2019.

Qingdao secondary market

Benefiting from the superior geographical location and rich tourism resources, the occupancy rate of downtown hotels has maintained a leading position in the various secondary markets.

The average occupancy rate since March has reached 63%. Huangdao and surrounding areas have experienced the highest occupancy rate since March. Occupancy rates are all 45%.

Due to the different types of tourist sources, the weekly data fluctuations of hotels in Huangdao and surrounding areas also show obvious differences: the secondary market of Huangdao covers two major sections of Huangdao New District and West Coast Tourism Resorts.

High-end hotels are concentrated, mainly for vacations. Type, outstanding performance during weekends and holidays; the surrounding area has more hotel teams and conference visitors, which effectively improves the mid-week occupancy rate.

For further insights into COVID-19’s impact on global hotel performance, visit our content hub.