Wu Jincao team of Soochow Trading Company, hotel industry framework report =: Triple trend of cash cow companies The market size of China's hotel industry is about 676.6 billion yuan, which is an important one in the field of social services

Soochow Trading Co., Ltd. Wu Jincao Team, Hotel Industry Framework Report =: Triple Trend of Cash Cow Companies

The market size of China's hotel industry is about 676.6 billion yuan, which is an important part of the social service field. The business model of the industry is asset-light franchising, large-scale expansion of entrusted management, and the main production factors are land, capital, manpower and entrepreneurial talent. The development stage of China's hotel industry is a period of rapid development, the competitive landscape is the increasing concentration of the industry, and the leading enterprises are expanding in an asset-light mode of management output. The market demand mainly comes from the B-end business tourists and the C-end tourist group, which is positively correlated with the economic cycle, and the optional consumption of the beneficiary residents is upwardly elastic. The trend of brand and group development in the hotel industry is the core driving factor of the industry. The similarities and differences in the business layout, strategic direction, operational efficiency and financial characteristics of the three leading hotels at the current stage of development are: continuous expansion, product structure upgrading, and expansion and lightweight. The advantages of the leading hotel are continuous expansion, product structure upgrading, and expansion and lightweight, resulting in deterministic growth, an annual increase of 2.5-3.5% in average room rates, an upward shift in long-term net profit margin, and the gradual emergence of cash cow attributes. In terms of valuation, the valuation of China's hotel industry has risen appropriately against overseas hotel leaders, and it is recommended to pay attention to Huazhu Group, Jin Jiang Hotels, BTG Hotels, Atour, Junting Hotels, etc. Risk warnings include weakening consumer demand, intensified competition in the industry, and store growth falling short of expectations.