China Hotel RevPAR Falls 6% Through July as Tourism Boom Fades
Updated
Updated · CNBC · Aug 3
China Hotel RevPAR Falls 6% Through July as Tourism Boom Fades
1 articles · Updated · CNBC · Aug 3
Summary
Hotel revenue per available room across China dropped 6% year-on-year through late July, worsening from a 1% decline in June as domestic travel demand weakened faster than expected.
A 3-percentage-point fall in occupancy and a 1% drop in average daily rates drove the slide, with heavy discounting visible across summer hotspots such as Shanghai, Xinjiang and Yunnan.
Hilton has already cut its 2026 China outlook to a low-single-digit RevPAR decline after second-quarter RevPAR fell 2.2%, reversing 1.3% growth in the first quarter.
Slower retail sales, subdued inflation and a 0.6% monthly drop in China's travel CPI sub-index in June point to broader consumer caution, including lower per-capita tourism spending since late 2025.
Inbound and luxury travel remain brighter pockets: Hyatt said U.S. visitors to China rose 18%, Europe 24%, and its Greater China RevPAR gained 7.2%, though overseas travelers make up only 12% to 13% of tourism spending.