What is the investment prospect of mid-range hotels?

The core data of this paper: the number of mid-range hotels, the operating income of mid-range hotels, and the occupancy rate of mid-range hotels

1. The concept and types of mid-range hotels

The basic definition of hotels (also known as hotels, hotels, hotels, etc.) is a commercial organization that provides users with safe and comfortable short-term rest or sleeping space, that is, a place that provides guests with lodging and eating.

hotels can be divided into budget hotels, mid-range hotels and high-end hotels according to their scale, equipment, service items and quality standards.

Mid-range hotels are characterized by convenience, excellent service and moderate price, and their customers are mainly business customers and tourists. In addition to providing basic food and accommodation services, some additional services will be provided, and the service facilities are mostly concentrated on business and leisure activities

2. Supply situation of mid-range hotels in China: before the epidemic, it grew at a high speed, leading the overall hotel industry

Mid-range hotels have become the outlet of the hotel industry in recent years, and many domestic hotel brands are also in mid-range hotels, and the supply is rising. In terms of the number of hotels, in 219, the number of mid-range hotels nationwide reached 31,283, with a compound growth rate of 43.2% in four years (216-219). In 22, under the impact of the COVID-19 epidemic, the number of mid-range hotels shrank to 29,683, down 5.1% year-on-year, but the proportion of mid-range hotels in the hotel industry increased by 1 percentage point, which reflected the development momentum of the supply side of mid-range hotels.

in terms of the number of rooms, the number of rooms in mid-range hotels in China increased rapidly before the epidemic, from 1.395 million in 216 to 2.81 million in 219, with a compound growth rate of 26.3% in four years (216-219). In 22, under the influence of COVID-19 epidemic, the number of mid-range hotel rooms declined to a certain extent, reaching 2.594 million, down 7.7% year-on-year. However, the ratio of mid-range hotel rooms to hotel rooms increased by 2 percentage points. ?

3. The demand of mid-range hotels in China: Before the epidemic, the room occupancy rate was stable, and the revenue increased rapidly

The room occupancy rate is an important indicator reflecting the hotel demand. According to the statistics of the Ministry of Culture and Tourism, the average occupancy rate of mid-range hotel rooms in China was relatively stable before the epidemic, ranging from 51% to 53%. In 22, affected by the COVID-19 epidemic, the average occupancy rate of mid-range hotel rooms dropped significantly, mainly because the epidemic restricted the business activities. With the popularization of domestic vaccines and the gradual improvement of domestic epidemic situation, it is expected that the room occupancy rate of mid-range hotels will return to the pre-epidemic level.

on the other hand, operating income is also one of the indicators reflecting the hotel demand. From the perspective of revenue, according to the statistical data released by the Ministry of Culture and Tourism and China Hotel Association, the revenue of mid-range hotels in China showed a rapid growth trend before the epidemic. In 219, the revenue reached 12.722 billion yuan, up 29.4% year-on-year, and the compound growth rate in four years (216-219) was 29.13%. In 22, affected by the COVID-19 epidemic, the revenue of mid-range hotels in China dropped significantly, reaching 74.172 billion yuan, down 38.6% year-on-year.

4. In the future, the supply and demand of mid-range hotels will rise simultaneously.

Although the COVID-19 epidemic in 22 will bring a heavy blow to the hotel industry, the domestic government attaches great importance to the prevention and control of the epidemic. At present, the epidemic has improved. With the popularization of vaccines in COVID-19, the tourism industry is expected to usher in a recovery in the future. According to the data of both supply and demand before the epidemic of Xinguan, the supply and demand of mid-range hotels in China kept rising synchronously, and the room occupancy rate remained at a stable level despite a large increase in supply, indicating that the new supply and demand kept a balance. The upgrading of residents' consumption is still going on, and the mid-range hotel is still the outlet of the hotel market. In recent years, the layout of the head hotel group on the mid-range market has not stopped. In the future, there will be greater market opportunities for mid-range hotels in China.

—— For more industry-related data, please refer to the Analysis Report on Development Prospects and Investment Strategic Planning of China Hotel Industry by Prospective Industry Research Institute.