China's hotel market still expanding

The average daily room rate in Beijing, Hong Kong and Macao continued to grow in the first half despite the lackluster global economy, said a report on Tuesday from international real estate service provider Knight Frank.

The average daily room rate, or ADR, is an index used to gauge conditions in the hotel industry.

Hong Kong saw the largest year-on-year growth in the first half of the year, with its ADR up 12.0 percent, followed by Beijing with a growth of 11.4 percent.

"We believe that China's tourism market will continue to grow rapidly in the next few years despite the gloomy global economic outlook," said Thomas Lam, head of research at Knight Frank Greater China.

Robust economic development and the growing number of tourists in China make it an attractive hotel market, which needs more rooms.

Encouraged by the country's strong economic performance and the rapid development of second and third-tier cities, international hotel operators have shown strong confidence in China's market and are pursuing aggressive expansion plans.

"The sentiment in the Greater China hotel market is set to remain strong, with demand for hotel rooms being driven up by the increasing numbers of both local and international visitors," Lam said.

International hotel operators, such as Club Med, Richfield Hospitality and Starwood Hotels & Resorts, are expected to further pursue their aggressive expansion plans in China, Lam added.