






{"id":41335,"date":"2025-02-11T13:51:09","date_gmt":"2025-02-11T06:51:09","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=41335"},"modified":"2025-03-11T12:24:16","modified_gmt":"2025-03-11T05:24:16","slug":"chinas-hospitality-market-thrives-as-developers-sell-off-assets-to-spark-recovery","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/chinas-hospitality-market-thrives-as-developers-sell-off-assets-to-spark-recovery\/","title":{"rendered":"China\u2019s hospitality market thrives as developers sell off assets to spark recovery"},"content":{"rendered":"<p>Indebted developers sell off hospitality assets to drive growth and a positive outlook for China\u2019s hospitality real estate market<\/p>\n<figure id=\"attachment_41338\" aria-describedby=\"caption-attachment-41338\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"size-full wp-image-41338\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2372405589-67ad997d2594b.webp\" alt=\"\" width=\"1000\" height=\"553\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2372405589-67ad997d2594b.webp 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2372405589-67ad997d2594b-400x221.webp 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2372405589-67ad997d2594b-600x332.webp 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2372405589-67ad997d2594b-768x425.webp 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-41338\" class=\"wp-caption-text\">Shanghai has witnessed a vibrant hotel transactions market, buoyed by asset sales and price adjustments involving China\u2019s largest developers. dongfang\/Shutterstock<\/figcaption><\/figure>\n<p>In autumn, the Chinese central government introduced several policy measures designed to release credit to developers to complete \u201cwhite-listed\u201d projects\u2014the thousands of buildings struggling to finish construction amid the country\u2019s property crisis.<\/p>\n<p>However, these measures target the residential sector, while the hotel and alternative retail sub-sectors are experiencing a notable boom.<\/p>\n<p>Residual liquidity and debt issues in the residential sector have not hindered hospitality; rather, they have driven activity as struggling developers have sold off hotels and related assets, leading to increased transactions and investment growth. In China\u2019s troubled property market, hospitality is a rare bright spot.<\/p>\n<p>Shanghai has witnessed a vibrant hotel transactions market, buoyed by asset sales and price adjustments involving China\u2019s largest developers. Early in 2024, Wanda Group sold the luxury Wanda Reign hotel\u2014a USD500-million property designed by British starchitect Norman Foster, located on the Bund\u2014to Indonesian tycoon Sukanto Tanoto for less than half its original price. This sale was part of Wanda\u2019s broader efforts to restructure debt.<\/p>\n<p>Other significant rebranding occurred in Shanghai, such as the Jiulong Hotel on the North Bund becoming a 315-room Sofitel asset, and the New World Hotel transforming into the 249-room Hyatt Centric Zhongshan Park.<\/p>\n<blockquote><p>Overall, China recorded some of the highest hotel investment growth in the Asia Pacific region during the first half of 2024, with a 126 percent increase, surpassed only by Singapore among major markets<\/p><\/blockquote>\n<p>In Chengdu, the state-owned Dajia Insurance Company, established to manage the debts of the defunct Anbang Insurance Group, sold cut-price assets to a local consortium of state-owned companies. These included a luxury hotel in Chengdu Financial Plaza, which was sold for approximately USD370 million, marking the largest hotel deal in China during the first half of 2024, according to Real Capital Analytics.<\/p>\n<p>Among China\u2019s property investment subsectors, hotels recorded the strongest growth in 2024, expanding 82 percent by midSeptember compared to the previous year, according to Savills data.<\/p>\n<p>\u201cDespite the challenging economic environment, there are signs of increased activity in the investment market. This improvement is driven by the availability of more high-quality assets, continued monetary easing, and asset repricing,\u201d says James Macdonald, head of China research at Savills in Shanghai.<\/p>\n<p>Overall, China recorded some of the highest hotel investment growth in the Asia-Pacific region during the first half of 2024, with a 126 percent increase, surpassed only by Singapore among major markets, according to Savills.<\/p>\n<p>Cut-price asset sales were a key market driver, but other factors also contributed to the hospitality sector\u2019s strong recovery, said Zhou Tao, managing director and head of the Hotels and Hospitality Group at JLL Greater China. In 2024, the Chinese government expanded its visa-free policies to boost its post-pandemic tourism sector, leading to an 86 percent surge in overseas visitors in the first 11 months of the year. \u201cAs the list of visa-free countries continues to expand, we anticipate a further influx of international visitors in 2025,\u201d Zhou says.<\/p>\n<figure id=\"attachment_41336\" aria-describedby=\"caption-attachment-41336\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"size-full wp-image-41336\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-551475247-67ad997d6f7db.webp\" alt=\"\" width=\"1000\" height=\"667\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-551475247-67ad997d6f7db.webp 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-551475247-67ad997d6f7db-400x267.webp 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-551475247-67ad997d6f7db-600x400.webp 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-551475247-67ad997d6f7db-768x512.webp 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-41336\" class=\"wp-caption-text\">Data suggests significant potential for inbound tourism growth in China in the short term. Maridav\/Shutterstock<\/figcaption><\/figure>\n<p>Data suggests significant potential for further inbound tourism growth in the near term. Visitor arrivals in the first three quarters of 2024 reached 95 million, or 87 percent of the volume during the same period in 2019, according to Chinese government data. In contrast, Japan has already exceeded its 2019 tourism levels, while Thailand, Malaysia, Vietnam, Singapore, and South Korea have recaptured a greater share of pre-pandemic visitors compared to China.<\/p>\n<p>Zhou noted that a recent hotel operators\u2019 sentiment survey conducted by JLL in China indicated optimism for 2025. \u201cThey anticipate their revenue and Gross Operating Profit (GOP) will surpass those of 2024,\u201d he adds.<\/p>\n<p>The retail sector, including restaurants and leisure spaces, has been another standout in China\u2019s otherwise depressed property market. While hotel investments soared 82 percent in September, the retail sub-sector recorded the second-highest growth rate, expanding by 50 percent over the same period. A key feature of the retail resurgence has been the refresh of large retail spaces in major cities, typically through expanded leisure offerings aimed at luring post-pandemic consumers back from online shopping.<\/p>\n<p>As part of efforts to revitalise its hospitality sector, the Chinese government has supported private sector initiatives with promotional campaigns. In Beijing, authorities launched a tourism promotion campaign centred on retail, dining, and culture to boost the summer and midautumn festival seasons in the second half of 2024.<\/p>\n<p>In Shanghai, Gate M in Xuhui Riverside emerged as a significant new addition to the city\u2019s retail and hospitality sector in late 2024. Combining art, culture, entertainment, and sports, the venue emphasises hospitality and leisure over traditional retail competition in older downtown areas.<\/p>\n<p>Hangzhou debuted two major downtown retail and leisure developments in the third quarter. Chezlotus, located near the Olympic Sports Centre, features sports venues, restaurants, and a pet-friendly street\u2014a novel concept in China designed to broaden its clientele. ICON Hangzhou, near the West Lake area, introduced nightlife-focused hospitality offerings, including karaoke.<\/p>\n<p>Similar innovations appeared in other major cities in late 2024, such as Tianjin, where Longfor Tianjin Meijiang Paradise Walk launched. This development features allday dining and social spaces, contributing to what Vincent Li of Savills Research China described as \u201caccelerating the formation of Tianjin\u2019s new retail landscape in non-primary retail\u201d areas like food and drink, leisure, and other hospitality offerings.<\/p>\n<p><em>T<\/em><em>his article was originally published on\u00a0<a href=\"https:\/\/www.asiarealestatesummit.com\/newsroom\/\" target=\"_blank\" rel=\"noopener\">asiarealestatesummit.com<\/a>. Write to our editors at\u00a0<a href=\"mailto:propertyreport@propertyguru.com\" target=\"_blank\" rel=\"nofollow noopener\">propertyreport@propertyguru.com<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>China\u2019s indebted developers are divesting hospitality assets to generate growth and enhance the outlook of the country\u2019s real estate market<\/p>\n","protected":false},"author":9,"featured_media":41338,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[97,92],"tags":[137,638,322],"class_list":["post-41335","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-magazine","category-news","tag-china","tag-real-estate","tag-tourism","news_country-china","news_author-steve-finch"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - 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content=\"https:\/\/www.asiapropertyawards.com\/en\/chinas-hospitality-market-thrives-as-developers-sell-off-assets-to-spark-recovery\/\" \/>\n<meta property=\"og:site_name\" content=\"Asia Property Awards\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/asiapropertyawards\" \/>\n<meta property=\"article:published_time\" content=\"2025-02-11T06:51:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-03-11T05:24:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2372405589-67ad997d2594b.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"553\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"Gynen Kyra Tirazona Toriano\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" 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