(Image source: Photo.com)
On December 28, in Nanyang, Henan, the woman's family of 8 has stayed in the hotel for 229 days, and the room rate is as high as 1,000 yuan per day. According to the client, they lived in a suite and two standard rooms, with a total of 90 square meters of space, and there were no parking, heating and utility bills. The woman said that she and her family lived very comfortably and decided to live in a hotel for the rest of her life.
I stayed at the hotel this time because my relatives got together and wanted to enjoy the fun of traveling together. Although the daily room fee is expensive, Xiaoli sees it as a rare opportunity to spend a pleasant time with her family.
In the traditional concept, hotels are usually the choice of short-term travelers, while long-term accommodation is more achieved through apartments, homestays, etc. However, the family's choice to stay in a hotel for a long time is also a reminder that there may be more room for growth and innovation in the hotel rental market.
Looking back at the hotel industry in mainland China:
-- The average occupancy rate of high-end star-rated hotels is more than 39%.
From the perspective of room occupancy rate, from 2015 to 2019, the average occupancy rate of four-star and five-star hotels fluctuated slightly, roughly stable between 55% and 57%. However, due to the impact of the epidemic in 2020, the average occupancy rate of high-end star-rated hotels across the country dropped sharply, with the occupancy rate of four-star hotels being 39.09% and five-star hotels being 40.38%. In 2021, the average occupancy rate of high-end star-rated hotels across the country has rebounded, with the occupancy rate of four-star hotels at 44.65% and the occupancy rate of five-star hotels at 41.92%, both of which have increased from 2020.
- The occupancy rate of mid-range star-rated hotels is close to 40%
From 2016 to 2019, the occupancy rate of the mid-range star hotel market remained between 50% and 53%. However, due to the impact of the epidemic in 2020, the operation of the hotel industry was restricted, and the occupancy rate of mid-range star-rated hotels in the country dropped sharply to 37.89%. In 2021, the occupancy rate recovered slightly, reaching 39.92%.
——In 2027, the revenue of star-rated hotels will exceed 200 billion yuan
Since 2022, the new crown pneumonia epidemic has fluctuated in many places in China, which has had a considerable impact on industries such as hotel and tourism. However, national and local policies have actively reduced the burden on enterprises, accelerated business recovery, and gradually improved epidemic prevention and control capabilities. In view of the fact that the new crown epidemic cannot be completely lifted for the time being, it is expected that China will still be affected in the next three years or so. However, with the improvement of prevention and control capabilities, it is expected that the revenue of China's star-rated hotels will basically recover to the level of 2018 and 2019 by around 2024, and it is expected that the revenue of star-rated hotels will reach more than 200 billion yuan by 2027.
According to a research report released by Everbright Securities, domestic hotel groups are currently in a transition period of franchise expansion and the increase in the proportion of mid-to-high-end hotels. Excluding the release of pent-up demand after the impact of the epidemic, the hotel industry still has high growth potential in the long run. This year, major hotels are paying more attention to improving the quality of store expansion, and a healthy development model will also help realize the future potential.
Chang Chuang, CEO of Jin Jiang Hotels (China), said that the mid-to-high-end formats and brands are rich and growing rapidly, and economy hotels still occupy the basic market of the entire market, but the demand has increased qualitatively. In the next few years, we should seize the opportunity to upgrade the hotel brand and look for new growth markets. He pointed out that the new trend of consumption is promoting the transformation of hotels from a single accommodation function to "hotel +", such as hotel + parent-child research, hotel + new retail, hotel + prefabricated dishes, hotel + rural leisure, hotel + staycation, etc. Expanding diversified revenue channels has become one of the inevitable trends for the future development of hotels.
Prospective Economist APP Information Group
For more research and analysis of this industry, please refer to the "Analysis Report on the Development Prospects and Investment Strategic Planning of China's Hotel Industry" by Qianzhan Industry Research Institute.
At the same time, the Prospective Industry Research Institute also provides solutions such as industrial big data, industrial research reports, industrial planning, park planning, industrial investment, industrial mapping, smart investment promotion system, industry status certification, IPO consulting/fundraising feasibility study, IPO working paper consulting, etc. To quote the content of this article in any public information disclosure such as prospectus and annual report, formal authorization from Qianzhan Industry Research Institute is required.
More in-depth industry analysis is available in the [Prospective Economist APP], and you can also communicate and interact with 500+ economists/senior industry researchers.