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Beijing Faces Glut of Hotel Rooms

Building frenzy before Olympics may have overestimated demand

By Clay Dillow,  Newser Staff

Posted Jul 18, 2008 12:55 PM CDT
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(Newser) – Beijing’s newest construction binge may lead to a glut of rooms as hoteliers race to finish new properties before the Olympic Games begin in August, the Wall Street Journal reports. When the Games open, Beijing will have 50 five-star hotels, more than double the total of five years ago. While three-quarters of those rooms are booked, fewer than half the rooms at four-stars are reserved.

"There's really been too much growth in the last couple of years," said one market researcher, noting the industry is growing by 40% a year in capacity but only by 15% in the number of visitors. The tourism bureau expects about 450,000 overseas visitors for the Olympics; 660,000 beds will be available. Meanwhile, with a relatively small pool of skilled hotel workers available, managers are scrambling to find staff.

Workers stand on scaffolding at a construction site in Beijing Thursday, Jan. 24, 2008. Beijing is erecting hotels faster than it can fill them, even with the Olympics on the horizon.
Workers stand on scaffolding at a construction site in Beijing Thursday, Jan. 24, 2008. Beijing is erecting hotels faster than it can fill them, even with the Olympics on the horizon.   (AP Photo/Greg Baker)
Construction cranes seen on a polluted day in Beijing, Tuesday, April 29, 2008. As the countdown to the Olympics begins, a glut of hotel rooms is emerging in the city.
Construction cranes seen on a polluted day in Beijing, Tuesday, April 29, 2008. As the countdown to the Olympics begins, a glut of hotel rooms is emerging in the city.   (AP Photo/Ng Han Guan)
The hotel glut is part of a larger building boom in Beijing that has further spurred China's unprecedented economic growth in the past few years.
The hotel glut is part of a larger building boom in Beijing that has further spurred China's unprecedented economic growth in the past few years.   (AP Photo/Ng Han Guan)
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