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Sino Express Travel Limited is encouraged by recent reports confirming China’s hotel boom. China, already the fourth most popular tourist destination, according to the World Tourism Association, is expected to move to the second position within a decade and surpass the U.S. as the world’s most-visited country by 2020 with some 130 million visitors a year. The number of domestic tourist soared to 1.61 billion in 2007, an increase of 15.5% from 2006.
China’s hotel industry shows strong momentum; according to China Statistical Yearbook, the number of hotels in China increased at an average annual growth rate of 20.12% for the period 1998 – 2006. China had 12,751 star-rated hotels in 2006 and could reach over 15,000 by the end of 2007. There were 1,689 budget hotels with over 180,000 guest rooms in 2007. The hotel occupancy rate had been consistently high over the years (66-70% for three to five-star hotels and 88-92% for budget hotels). From these reports, Sino believes there is ample demand to fill more hotel rooms. Sino has previously announced development plans for its Southern Silver Resort & Beach property in Yangjiang and a potential property acquisition in Chengdu for hotel renovation. Sino will continue its search for high value properties in good locations that are close to scenic spots or tourist destinations, and it is looking at some targets in Hunan and Xian.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
