The Future Development Trend of China Hotels

"Digital Transformation" has been accelerated in an all-round way

According to a research report of Prospective Research Institute, in 20 19 years, the occupancy rate and average house price of mid-range hotels both decreased. Affected by this environment and epidemic factors since 2020, the report predicts that the number of newly-added mid-range hotels will be further reduced to less than 1 000 in 2020.

The agency predicts that the operating data of mid-range hotels will continue to decline in 2020. Especially in terms of average house price, it is estimated that the return on investment will drop by 5%- 10% year-on-year, which will have an impact on the already competitive markets such as Chengdu, Chongqing and An. Not only that, although the domestic epidemic prevention and control situation has achieved initial results since the second quarter, it is expected that the hotel industry in Tianjin, Chongqing and other cities will still be difficult to improve in the short term.

Industry analysts believe that during the epidemic, online and offline integrated services have received unprecedented attention, and cloud tourism, cloud shopping and cloud entertainment have become new trends. The traditional hotel management and operation mode generally has problems such as single marketing means, imperfect member management, high management cost and single consumption scene. To some extent, this epidemic forced the hotel industry to accelerate the digital transformation.

The vitality of the hotel industry is gradually recovering.

With the normalization of epidemic prevention and control, various forms of consumer voucher subsidies, tax incentives, RRR relief, loan extension and other support in the industry have gradually landed. The government's economic aid policy has brought some benefits to the depressed hotel industry.

Although the sudden outbreak of the epidemic at the beginning of the year brought severe challenges to the hotel industry, the overall performance declined seriously. However, with the effective control of the domestic epidemic, the tourism and hotel industries are gradually recovering, and the vitality of the hotel industry is also gradually recovering. Especially since the second quarter, the hotel industry has ushered in some obvious signs of recovery.

From 20 10 to 20 19, the number of hotels in China showed an upward trend year by year, with an average compound annual growth rate of 4%. In 20 19, the number of hotels in China was 884,000, up 2% year-on-year.

Judging from the occupancy rate of major domestic markets, the daily occupancy rate of Beijing market in the first week of March was mostly maintained at around 10%, and it had climbed to 2 1.6% by the end of March. In April, the comprehensive occupancy rate of Mo Lifeng hotel market around Beijing climbed to 70%. During the May Day Golden Week, the room occupancy rate in the surrounding areas of Beijing further rose to 77.76%.

The rising hotel occupancy rate means that the market is showing signs of recovery. On the other hand, affected by the epidemic, pent-up travel demand has not been fully released. According to the analysis of the insiders, hotel enterprises should reduce their costs as much as possible according to their own operating conditions to survive the cold winter in the market.

With the change of economic situation, consumers' demand will gradually change from brand consumption, concept consumption and cultural consumption to rational consumption with cost performance. The impact of this is that in the next few years, the operation mode of de-concept and de-hype will make ends meet, and the hotel brands with lower cost and better quality will be more stable.

-For more data sources and analysis, please refer to the analysis report of China Hotel Industry Development Prospect and Investment Strategic Planning by Forward-looking Industry Research Institute.