Focus Market | Overview of Tianjin Market Performance Recovery

Tianjin, as an important regional hub and international port of the country, is the gateway to the opening up of the northern region. Since the beginning of 2021, as the epidemic prevention and control gradually stabilized, Tianjin hotel market performance rebounded significantly with occupancy rate and average room rate showing positive performance.

Beijing, Tianjin & Hebei Markets

Beijing, Tianjin and Hebei hotel market performance and the degree of recovery is different. Based on the 2019 data, the cumulative data for May 2021 shows that the average room rate index in the three markets of Beijing, Tianjin and Hebei is higher than the occupancy rate index. Although Tianjin's average room rate index ranks in the middle of the three markets, it has reached 91% of the same period in 2019. The occupancy rate index remained at 79%, slightly lower than the recovery rate of the occupancy rate in Mainland China.

Potential opportunity

Measuring the average occupancy rate of the overall Tianjin market in recent years (2017 to 2019) in non-epidemic years, we found that the market demand remained stable in the second quarter, and the months with high market enthusiasm were concentrated in the second half of the year and during the summer. In the context of the continuous return of the average room rate in the first five months of this year, more opportunities for performance improvement are coming.

Weekly occupancy rate performance

Also using 2019 as a benchmark, the Tianjin market’s weekday occupancy rate index since March reached a new high. The weekday index in May reached 98%, basically returning to 2019 level. The weekend occupancy rate index remained at 90%, the second-best result since September and October 2020.

Binhai New Area

In non-epidemic years, the downtown area is often a hot spot for performance improvement. In 2020 and 2021, STR has found in more and more market observations that the surrounding market will show a recovery in occupancy earlier. Taking Tianjin Binhai New Area as an example, the occupancy rates of hotels of all levels in the second half of March have begun to show an upward trend. Of particular concern are luxury and upper upscale hotels, whose occupancy rates have reached the level of the same period in 2019 since April.

Tianjin City Center

Tianjin’s downtown area, a cluster of hotels, has an advantage in terms of the stability of average house prices. Since 2021, compared with the same period in 2019, average room rate index for the past 7 days in downtown Tianjin has remained above 90%. The bargaining power of average room rate during the small holiday is more significant.

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