The current situation and development trends of resort hotels in my country

Analysis of the Development Prospects of the Domestic Hotel Industry in 2007

With the continued rapid growth of the national economy and the accelerating consumption upgrade, the growth rate of my country's hotel industry in 2006 was astonishing. All the top ten international hotel groups have entered China and continue to expand, and second-tier brands have also landed in China. Relevant experts said that while maintaining rapid growth in 2007, the hotel industry will further segment the market, and its differentiated competition will significantly intensify.

A bubble may appear in budget hotels

In recent years, budget hotels have shown a trend of scale, network and brand development. It is understood that in the past 10 years since my country's first budget hotel was built in 1996, budget hotels have grown into an independent commercial force in the domestic tourism accommodation industry. Since this year, the Home Inn hotel chain has been successfully listed on the Nasdaq, Warburg Pincus has invested in the 7 Days Inn chain, Morgan Stanley plans to invest US$20 million in Motel (accounting for about 20 shares) and plans to list Motel in the United States as soon as possible, Jinjiang Events such as Star's inclusion in Jinjiang International and its listing in Hong Kong will promote the emergence of new listed companies or the entry of new strategic investments or venture capital.

Although the budget hotel market is not yet saturated, brand-led industry concentration is taking shape, and there is even room and possibility for development in other Asian regions in the future, industry insiders caution that the new irrational If there is a round of investment boom, a certain industrial bubble may appear, and vicious competition may occur in some cities.

As for the development trend of budget hotels in 2007, industry insiders believe that in order to maintain competitive advantages, leading budget hotel companies will continue to expand the market size and accelerate the pace of spatial layout. In regional markets, such as southern and central China (Sichuan, Chongqing, and Han), new competition hot spots may emerge.

In terms of price, experts predict that the price of budget hotels will definitely fall further in 2007. The launch and operation of the "My Inn" project in the Yangtze River Delta region, priced at 99 yuan/room night, will introduce a truly low-cost hotel format to the Chinese hotel industry in 2007.

Industry insiders pointed out that another direction of innovation is the broadening of consumer groups. At present, budget hotels are mainly positioned in the business market. The entrances and exits of highways will also become the locations of budget hotels, and subdivided brands will enter.

High-end hotels have strong growth momentum

The high-end hotel market is also seeking its own more detailed market positioning. Industry insiders said that the implementation of the 2003 version of the "Classification and Rating of Tourist Hotel Stars", especially the first batch of platinum five-star hotels officially produced in early 2007, will promote the standardization and professionalization of hotel management and services. The luxury and high-end hotel market has been driven to form an investment hotspot characterized by renovation, upgrading and design enhancement.

Industry analysts believe that the continued growth of the national economy and the reform of the land supply system have also given real estate investors more room for imagination. As the impact of macroeconomic control policies on residential real estate development continues to become more apparent, it is expected that more real estate capital will be diverted to the development of high-end hotel properties.

A survey shows that there are 1,057 hotels under four- and five-star standards in China that are under construction or have been completed and will be put into operation by the end of 2007, of which 507 are five-star hotels. There are 77 high-end luxury hotels awaiting review in Guangdong alone, 35 of which have been completed.

The prospect of resort hotels is promising

With the reduction of automobile tariffs and the improvement of the level of domestic production of cars, the pace of cars entering families will accelerate. In this context, along the expressway, it is possible to become a growth point for hotel industry innovation.

Experts therefore predict that the courtyards represented by Beijing’s “New Hongzi” Inn, urban boutique hotels represented by Shanghai Xintiandi 88, and thematic scenic spots represented by Hangzhou Expo Garden First World Hotel will Hotels, as well as some ancient town houses, family hotels, folk hospitality houses, community hotels and other emerging business formats with rich cultural connotations will gradually become popular in some areas.

At the same time, there are obvious signs of growth in resort hotels in 2006, especially seaside resort hotels represented by Sanya, lakeside resort hotels centered on Taihu Lake and West Lake, and Jiuzhaigou, Taishan, and Some commercial resort hotels like Mount Emei, as well as some leisure hotels in cities such as Chengdu, Xiamen, and Ningbo, have emerged. It can be said that these hotels rely on scenic spots and cultivate their own consumer groups with concepts such as hot springs and cultural heritage. 2006 can be said to be the year when the resort hotel industry shifted from the edge to the center.

Industry insiders believe that economic development will inevitably bring about the upgrading of consumption. As the concept of tourism and leisure gradually becomes popular, tourism consumption will also become an inevitable choice for consumption upgrading. Resort hotels will be in the near future. It is likely to become the target of capital market pursuit.

Related research reports:

-2007 China Hotel Industry Analysis and Investment Consulting Report

-2006-2007 China Economic Hotel Industry Analysis and Investment Consulting Report

-2006-2007 China Property Hotel Industry Analysis and Investment Consulting Report