China hotels booming despite oversupply

Overseas hotel groups are keen on building or operating five-star hotels in the mainland despite fierce competition and oversupply in cities such as Beijing, according to Christopher Hartley, chief executive of Global Hotel Alliance. The alliance, consisting of seven hotel partners from 32 countries, currently operates six mainland hotels and plans to increase the number to 15 next year and to 25 within five years, according to a report in Hong Kong’s Standard newspaper.

“Beijing will benefit from the Olympics not only in 2008, but also over the next 10 years. Look at other host cities like Barcelona. The event will open up China to tourists as a travel destination,” Hartley said, adding that these tourists will also visit other cities such as Xian.