Jefferies sees China hotel revenue rise in late August

Investing.com -- China's overall hotel revenue per available room grew 3.6% year-over-year during the week of Aug. 23, according to Jefferies analysis of STR data released Thursday.

The increase compared to a 3.1% year-over-year gain in the prior week. RevPAR reached RMB262.3, driven by average daily rate rising 2.2% year-over-year to RMB388.7 and occupancy climbing 1.4% year-over-year to 67.5%.

Within hotel segments, midscale and economy hotel RevPAR rose 0.8% year-over-year to RMB179 during the week of Aug. 23, slowing from a 2.3% gain the previous week. ADR increased 0.9% year-over-year to RMB257.3, while occupancy declined 0.1% year-over-year to 69.6%.

Upscale and upper midscale hotel RevPAR advanced 2.7% year-over-year to RMB253, accelerating from a 1.6% rise the prior week. ADR fell 1.2% year-over-year to RMB388.4, while occupancy jumped 4% year-over-year to 65.1%.

Luxury and upper upscale hotel RevPAR increased 3% year-over-year to RMB530.5 during the week of Aug. 23, up from a 1.7% gain the previous week. ADR rose 1.3% year-over-year to RMB798.7 and occupancy climbed 1.7% year-over-year to 66.4%.

Domestic air passenger volume grew 3% year-over-year during the week of Aug. 24, according to VariFlight data cited by Jefferies. This represented a slowdown from 6% growth the prior week. Passenger volume reached 16.99 million while domestic air fares declined 3% year-over-year to RMB859.1, improving from a 5% decline the previous week.

Jefferies maintains Trip.com as its top pick in the travel and lodging sector, followed by Atour Lifestyle.

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