China’s Choppy Hotel Recovery Sounds Warning Alarm for Global Developers
Skift Take
Even though the hotel industries in the U.S. and Europe have outperformed China in recent weeks, developers in these stronger markets should consider how their projects will be impacted by China’s closed borders remaining walled off.
Early Check-In
Editor’s Note: Skift Senior Hospitality Editor Sean O’Neill brings readers exclusive reporting and insights into hotel deals and development, and how those trends are making an impact across the travel industry.Most of the major hotel companies spent third quarter earnings calls focusing on strong recoveries underway in the U.S. and Europe.
China, the industry’s go-to growth story for much of the pandemic, faced a significant setback over the latter part of summer due to the Delta variant and the country’s zero tolerance approach to new cases. Even Europe, which has lagged in its hotel recovery due to various lockdown measures across individual European Union member countries, outperformed China’s hotel industry for the last two week, according to STR.
Most of the major companies, from IHG to MGM Resorts and Las Vegas Sands, all maintain the long-term development climate in China is strong despite the recent performance flounder.
That’s a significant take, especially for the casino resort companies that saw their valuations tank earlier in the fall upon news China was pursuing heightened regulations on top of license renewals in the special admi
