The impact of Lunar New Year caused hotel occupancy levels in mainland China to slump last month.

According to the latest data from STR Global, provided exclusively to Travel Daily, China’s five largest metropolises all experience double-digit occupancy declines last month.

The rate of decline in Shanghai (-12.6% to 39.6%), Beijing (-11.6% to 50.1%) and Tianjin (-12.0% to 35.5%) was less marked than in Chongqing (-23.8% to 35.5%) and Guangzhou (-27.6% to 46.9%).

Rising average daily rates (ADR) did provided some relief for hotels, especially in Chongqing which saw ADR jump 22.6% year-on year to US$80, but all five metros still posted declining revenue per available room (revPAR). The worse-affected cities were Shanghai (-15.0% to US$44) and Guangzhou (-17.8% to US$52).

Lunar New Year fell in January 2012 compared to February last year, leading to a mass migration away from China’s cities. Rising hotel room supply in China’s major cities has also contributed to declining occupancy levels.

Source: Travel Daily Asia