First Read: China hotel RevPAR and airfare weekly "China hotel RevPAR..."

Research evidence excerpt

First Read: China hotel RevPAR and airfare weekly "China hotel RevPAR..."

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First Read

EquitiesChina hotel RevPAR and airfare weekly

China hotel RevPAR -6.5% YoY due to weather China

impact Leisure Goods & Services

Xin Chen

Analyst

xin.chen@ubs.com

Mainland China hotel RevPAR -6.5% YoY during Jul 5-11 +86-21-3866 8864

According to STR, mainland China hotel RevPAR -6.5% YoY during Jul 5-11 2026 vs. the Ingrid Zhang

week of Jul 6-12 2025. The RevPAR growth slightly deteriorated from -5.3% YoY in the Analyst

prior week. We mainly attribute the weak RevPAR performance to the weather impact S1460517080003

(e.g. typhoon and persistent rainfall). Average daily rate (ADR)/occupancy rate (OCC) - ingrid.zhang@ubs.com

1.8%/-3.4ppt YoY, respectively, vs. -1.4%/-2.6ppt in the prior week. +86-21-3866 8853

Beini Du

Midscale/upper-midscale segment RevPAR -11%/-7% YoY Associate

By segment, upper-midscale/midscale/economy hotels RevPAR posted -7%/-11%/-5% S1460525090002

YoY (vs. -6%/-10%/-6% prior), respectively. Notably, STR data indicates a sharp decline betty-za.du@ubs.com

+86-213-866 8753

in OCC due to the weather impact. In our view, the new supply in the sector mainly

focused on the upper-midscale and midscale segments, leading to the RevPAR of these Jarrod Castle, CFA

two segments facing more pressure. Analyst

jarrod.castle@ubs.com

+44-20-7568 8883

Luxury and upscale segments RevPAR -6%/-6% YoY

On the other hand, luxury and upscale hotels saw RevPAR growth of -6%/-6% YoY (vs. Robin M. Farley

-6%/-5% prior), better than limited service segment. But the luxury segment's

robin.farley@ubs.com

performance also weakened and shifted from positive to negative starting from the +1-212-713 2060

week of June 21.

Sukrit Friestad