In 2023, from Zibo, which is famous for barbecue, to Harbin, which accepts small potatoes from the south, and then to the crowded Laojun Mountain in Luoyang, it is not only the well-known scenic spots in the country that are popular in the short video era, but also the "housing" in clothing, food, housing and transportation.
On the evening of April 25, with the announcement of the 2023 report card of the A-share listed company Junting Hotel, the annual reports of 5 domestic listed hotel companies were all disclosed, plus the overseas listed Huazhu Group and Atour Group, 7 hotel listed companies made a lot of money in 2023.
From the annual reports of these hotel listed companies, it is also revealed that the strong recovery of the tourism industry has not only driven the strong recovery of the hotel industry in the industry, but also carried the banner of China's economic recovery.
The report card of 7 major hotel listed companies has been released:
Huazhu has been open for three years, and Jinjiang's net profit has increased by more than 600%
On the evening of April 25, Junting Hotel, an A-share listed company, released its 2023 annual report. According to the annual report data, in 2023, the company will achieve an operating income of 534 million yuan, a year-on-year increase of 56.16%, and a net profit of 30.5199 million yuan, a year-on-year increase of 2.60%.
As the latest domestic hotel listed company to release its annual report, SSAW Boutique Hotel will have a significant increase in revenue in 2023, but its net profit will not increase much. However, compared with the slightly "mediocre" net profit growth of SSAW Boutique Hotel, the net profit growth of Huazhu Group, Jin Jiang Hotel, BTG Hotel and Atour is quite dazzling.
On March 20, Huazhu Group, one of the three major hotel chains in China, took the lead in releasing its financial results for the fourth quarter and full year of 2023. According to the data, in 2023, Huazhu Group achieved revenue of 21.9 billion yuan, a year-on-year increase of 57.9%, and recorded a net profit of 4.1 billion yuan.
It should be noted that since 2020, Huazhu Group has lost money for three consecutive years, and the annual report shows that from 2020 to 2022, its net profit will be -2.192 billion yuan, -465 million yuan and -1.821 billion yuan respectively. However, with the recovery of the tourism industry, Huazhu Group will also change its decline in 2023 and its net profit will increase significantly.
Compared with Huazhu Group's "opening for three years", the performance of domestic hotel chain giant Jin Jiang Hotel in 2023 is not far behind.
According to the annual report data, in 2023, Jin Jiang Hotel achieved revenue of 14.649 billion yuan, a year-on-year increase of 29.53%, and a net profit attributable to the parent company of 1.002 billion yuan, a year-on-year increase of 691.14%.
Similar to Jin Jiang Hotel, in 2023, Atour Group achieved revenue of 4.666 billion yuan, a year-on-year increase of 106.2%, and adjusted net profit of 903 million yuan, a year-on-year increase of 248.3%.
Also in 2023, BTG Hotels will also have a net profit increase of more than 200%. According to the annual report data, in 2023, BTG Hotels will achieve an operating income of 7.793 billion yuan, a year-on-year increase of 53.10%, and a net profit of 795 million yuan, a year-on-year increase of 237.85%.
It should be noted that compared with Huazhu Group, Jin Jiang Hotel and Atour's spring breeze, Huatian Hotel has fallen into a loss. According to the annual report data, Huatian Hotel's net profit in 2023 will be -126 million yuan.
The reason for the soaring performance of listed hotel companies is the rise in housing prices
Looking at the annual reports of 7 listed hotel companies, it can be clearly found that an important factor supporting their performance growth in 2023 is the increase in average hotel room rates.
The Average Daily Rate (ADR) is the average room rate of rooms sold by a hotel during a specific period, calculated as room revenue / actual rooms sold. RevPAR refers to the revenue per available room that a hotel can generate in a specific period, which is calculated as room revenue per available room, i.e., occupancy rate ×ADR.
Taking SSAW Hotel as an example, its annual report data shows that from 2020 to 2022, the average room rate of the company's directly operated hotels throughout the year will be 367.14 yuan/room, 398.33 yuan/room, and 401.15 yuan/room, respectively, although the average room rate has increased year after year, it is still far behind the average room rate of its directly operated hotels in 2023 of 490.46 yuan/room.
BTG Hotels' annual report data shows that the RevPAR (revenue per available room) of all hotels in 2023 will be 154 yuan, an increase of 58.4% over the same period last year, the average room rate will be 235 yuan, an increase of 28.2% over the same period last year, and the occupancy rate will be 65.7%, an increase of 12.5 percentage points over the same period last year.
Excluding lightly managed hotels, BTG Hotels will have a RevPAR of RMB173 in 2023, an increase of 65.1% over the same period last year, an average room rate of RMB251, an increase of 32.8% over the same period last year, and an occupancy rate of 68.8%, an increase of 13.5 percentage points over the same period last year.
Similar to BTG Hotels' average room rate increase, the average daily room rate of Huazhu Hotels will also increase by nearly 30% year-on-year in 2023.
According to the annual report, the average daily room rate of leased and owned hotels of Huazhu Hotel increased by 36.9% year-on-year, and the average rentable room revenue of Huazhu Hotel increased by 36.9% year-on-year, and the RevPAR of managed franchised and franchised hotels increased by 51% year-on-year.
It should be noted that with the strong recovery of the tourism industry in 2023, the RevPAR of many listed hotel companies is the same as in 2019. BTG Hotels announced that in the fourth quarter of 2023, the RevPAR of all hotels excluding lightly managed hotels recovered to 100.3% of the same period in 2019, and for the full year of 2023, the RevPAR of all hotels excluding lightly managed hotels recovered to 106.5% of the same period in 2019.
On January 22, Huazhu Group announced that for the whole year of 2023, Huazhu China's RevPAR will reach 122% of the 2019 level. The company's RevPAR for the fourth quarter of 2023 recovered to 120% of 2019 levels as demand for leisure and business travel continued to recover.
The second reason for the soaring performance of listed hotel companies: expansion, expansion or expansion
In fact, in 2023, when the performance of listed hotel companies is soaring, in addition to the factors of price increases, there are also various companies that have almost unanimously chosen to expand. However, from the perspective of expansion direction, sinking and mid-to-high-end have become the key directions for each hotel to choose to expand.
According to relevant data, as of the end of December 2023, the number of hotels in mainland China has reached 343545, an increase of 24.5% over the same period in 2020. In addition to the existing hotels, the total number of newly opened hotels in the country will reach 41,700 in 2023, almost twice the total number of newly opened hotels in 2022.
The annual report data of various hotel listed companies are also verifying the accuracy of the above data. Judging from the situation of various listed hotel companies, in 2023, Huazhu China will open 1,641 new stores, a record high. Among the 9,263 hotels in operation in Huazhu China, 4,295 are "mid-range, mid-to-high-end hotels and others", accounting for 46%.
In 2023, Jin Jiang Hotels will open 1,407 new hotels, including 60 new full-service hotels, 1,347 new limited-service hotels, 518 exiting hotels, 1 hotel being opened and under construction, and a net increase of 828 hotels.
In 2023, BTG Hotels will open 1,203 new hotels, including 283 new mid-to-high-end hotels, an increase of 41.5% year-on-year.
In 2023, Atour Group exceeded its expansion target in 2023 with the launch of 289 new hotels.
SSAW Hotel's 2023 annual report shows that during the reporting period, the group signed 55 new hotels and opened 34 new hotels.
In addition to collective expansion, focusing on the sinking market and mid-to-high-end upgrading have become the common choice of many listed hotel companies.
Taking Atour Group as an example, Atour Group has launched Light House 3.0 for young customers and Atour 4.0 for business travel and vacation guests based on business travel, so as to seize the 100 billion mid-to-high-end business travel market.
Similarly, BTG Hotels' annual report shows that benefiting from the steady development of mid-to-high-end products, mid-to-high-end products accounted for 58.34% of hotel revenue, a year-on-year increase of 5.29 percentage points. BTG Hotels adheres to the strategy of large-scale hotel expansion, and also concentrates resources on the development of mid-to-high-end hotels.
Judging from the current annual report data of various hotel listed companies, in 2024, expansion will still be the main theme of all hotel listed companies.
Overall, Huazhu Group plans to open about 1,800 hotels and close about 650 hotels in 2024, Jin Jiang expects to open 1,200 new hotels and 2,500 new contracted hotels in 2024, BTG plans to open 1,200-1,400 new hotels in 2024, and many international hotels plan to accelerate their deployment in the Chinese market in 2024.
Behind the soaring performance of listed companies in the hotel industry is the strong recovery of the tourism industry
In fact, judging from the performance growth of listed companies in the hotel industry, whether it is the rise in average room rates or the expansion of quantity, behind the steady development of the domestic tourism industry is the strong recovery of the domestic tourism industry in 2023.
According to a report by the China Tourism Academy (data center of the Ministry of Culture and Tourism), the number of domestic tourists will reach 5.407 billion in 2023, and the domestic tourism revenue will reach 5.2 trillion yuan. According to data released by the Ministry of Commerce, in 2023, China's import and export of travel services reached 1,485.6 billion yuan, a year-on-year increase of 73.6%, making it the fastest-growing service trade sector.
The popularity of the tourism market has led to the recovery of the hotel market as a supporting cultural and tourism industry. From the perspective of the four representative cities of Beijing, Shanghai, Guangzhou and Shenzhen, the monthly search index of the platform is significantly higher than that of the same period in 2022. Due to the online spread effect of barbecue and small potatoes, Zibo had the highest search index in April, while Harbin had the highest search index in December.
The expectation of a hot market has also driven the trend of holiday hotel reservations in advance. For the National Day and May Day holidays, the proportion of bookings made more than 7 days in advance has increased to 30%+ in 2023.
As a comprehensive industry, the accelerated recovery of tourism has also effectively driven the development of related industries and boosted confidence in economic development.
In the view of Zhang Baoying, president of Jiuding Desheng Economic Research Institute, the tourism industry has the characteristics of diverse product types, long industrial chains, and a wide range of radiation industries, and the tourism industry has played an important role in the past year. The recovery of the tourism market has a positive effect on the pan-tourism ecology, including "food, housing, transportation, travel, shopping and entertainment". The accommodation and catering industry has become the "locomotive" leading the growth of the service industry, and at the same time, the accommodation and catering industry also has a strong role in driving the growth of comprehensive consumption in destinations including shopping, leisure and entertainment.
"Driven by the tourism market, catering, shopping, sports, culture, education, business and other related service industries have also recovered rapidly, and the steady growth of the service industry has provided important support for the economic recovery. Zhang Baoying said.
Editor-in-charge: Wang Shidan | Reviewer: Zhang Yipeng | Review: Li Zhen | Supervisor: Wan Junwei
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