Hotel Investment's Golden Era Ends as Returns Decline

TravelDaily China analysis indicates that hotel investment returns in China are declining and payback periods are lengthening. In Q2 2026, mature hotel RevPAR at major groups declined. Oversupply is the main cause: from 2023 to 2026, the number of hotels with 15+ rooms increased from 312,000 to nearly 420,000, up over 30%. Static payback periods have extended to 4-6 years generally, and 6-9 years in saturated areas, with annualized ROI shrinking to 8%-12%.