China Hotel Market Saturated With New Hotels

The Hotels online magazine this morning ran a story covering Horwath HTL's new China data on how oversupply is hitting operating performance.
After a four year build up of news rooms in the market leading indicator RevPAR is under attack and hotel payback periods are now moving out into the distant horizons.
Despite inducing demand into the marketplace, the massive supply line has created jitters for hotel investors.
One market which has managed to buck the trend is the resort destination of Sanya.
Damien Little of Horwath HTL points out that it's exceptionally hard to pinpoint if supply growth is mismatched to demand growth.
Certainly Bangkok hotels should take note of the trend in a city which is virtually swimming in new hotel supply coming online.