Development Status of Economy Hotels

The number of budget hotels is decreasing.

During 20 16-202 1 year, the number of budget hotels (one star and two stars) in China Ministry of Information and Tourism continued to decline. 20 16 was 1842, and it decreased to 650 in the third quarter of 2022. After experiencing explosive growth at the beginning of the 20th century, the economy hotel industry has been declining in recent years, mainly because the market space is gradually squeezed by high-end star-rated hotels under the background of residents' consumption upgrading.

According to the data of "20021China Hotel Industry Development Report" issued by China Hotel Industry Association, by the end of 20021,the number of hotel rooms in China was 2.22 million, a year-on-year decrease of about160,000. The chain rate of budget hotels was 27.84%, up 2.84 percentage points year-on-year. While the total number of rooms decreased, the chain rate increased, indicating that the chain integration of the economy hotel industry has entered an accelerated stage, and the economy hotels with low operating efficiency will withdraw from the market.

The average occupancy rate of budget hotels is above 36%

From the room occupancy rate, the average room occupancy rate of one-star and two-star hotels fluctuates between 20 13 and 20 19, and basically remains in the range of 47-54%. In 2020, affected by the epidemic, the average occupancy rate of budget hotels in China dropped sharply, with the average occupancy rate of one-star hotels being 35.74% and that of two-star hotels being 38.6 1%. In 20021year, the average occupancy rate of one-star hotels was 36.06%, and that of two-star hotels was 39.0 1%, which was higher than that in 2020.

The chain rate of budget hotels is lower than that of high-end hotels.

From 20 18 to 202 1, the chain rate of budget hotels is also increasing, but compared with other star-rated hotels, the chain rate is still at a low level, with 202 1 less than 30%.

Hanting Hotel stands out among budget hotels.

According to the Report of Top 50 China Hotel Groups in 2022 issued by China Hotel Association, the top ten budget hotels in China are Hanting Hotel, Home Inn, Greentree Inn, 7 Days Hotel, Jinjiang Inn, city easy Hotel, Shangkeyou Hotel Chain, Yun Hotel, Yilai Hotel and Green Alliance, with a Cr of 57.48%. Among them, Hanting Hotel, Home Inn and Greentree Inn ranked in the top three, accounting for 12.36%, 8.26% and 8.06% respectively.

-For more research and analysis of this industry, please refer to the Analysis Report on the Development Prospect and Investment Strategic Planning of China Hotel Industry by Forward-looking Industry Research Institute.