At InterContinental Hotels Group, revenue per available room in Greater China rose just 0.7 percent from a year earlier in the third quarter of 2013, according to company filings.

Hotels in the densely populated east of China filled about 64 percent of rooms during April. That compares with occupancy rates of about 70 percent in Accor's economy hotels globally and 68 percent in its upper-and mid-market locations during 2013, according to a company presentation in January.

"The oversupply can be chronic if things keep getting built, but if the supply even starts to moderate, demand will catch up," Issenberg said. "If you ask anybody, 'If you had more time or money what would you do? ' almost everybody says travel."

The chain is also building six new hotels in Myanmar amid rising foreign investment in the country, he said. A first site will open next month in the capital of Naypidaw, with others to follow in Yangon and the scenic Inle Lake.

Setting up credit-card payment networks, getting insurance and training workers in hygiene is still a challenge in a country that has little experience with tourism, he said.

Myanmar had about 36,177 tourist arrivals during August 2013, the most recent month for which data compiled by Bloomberg is available, compared with 2.4 million during the same month in neighbouring Thailand.

"I went in December, and a hotel we were visiting had an ATM machine and was really excited" about it, Issenberg said referring to Myanmar. "That tells you the state of the country, that this is big news that you can actually get cash."

Top 10 overseas travel destinations for Chinese riches

Top 10 overseas destinations for mainland tourists