The development status of budget hotels

The number of budget hotels is on a downward trend

From 2016 to 2021, the number of budget hotels (one-star hotels and two-star hotels) reported to the Ministry of Culture and Tourism across the country continued to decline . It was 1,842 in 2016 and dropped to 650 in the third quarter of 2022. After experiencing explosive growth in the early 21st century, the budget hotel industry has shown a declining trend in recent years. This is mainly due to the fact that the market space has been gradually squeezed by mid-to-high-end star-rated hotels amid the upgrading of residents' consumption.

According to data from the "2021 China Hotel Industry Development Report" released by the China Hotel Industry Association, as of the end of 2021, the number of national economy chain hotel rooms was 2.22 million, a year-on-year decrease of approximately 160,000 rooms. The chain rate of economic hotels was 27.84%, a year-on-year increase of 2.84 percentage points. While the total number of guest rooms has declined, the chain rate has increased, indicating that the chain integration of the budget hotel industry has entered an accelerated stage, and budget hotels with low operating efficiency will exit the market.

The average occupancy rate of budget hotels is above 36%

From the perspective of room occupancy rate, the average occupancy rate of one-star and two-star hotel rooms fluctuated from 2013 to 2019. , the overall situation is basically maintained in the range of 47-54%. In 2020, affected by the epidemic, the average occupancy rate of budget hotels nationwide dropped significantly, with the average occupancy rate of one-star hotels being 35.74% and the average occupancy rate of two-star hotels being 38.61%. The average occupancy rate of one-star hotels in 2021 is 36.06%, and that of two-star hotels is 39.01%, both of which have increased compared with 2020.

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

The chaining rate of budget hotels also continues to grow from 2018 to 2021, but compared with other grades of star-rated hotels , the chainization rate is still at a low level, less than 30% in 2021.

Hanting Hotel stands out among budget hotels

According to the "2022 China Hotel Group TOP50 Report" released by the China Hotels Association, the top ten budget hotels in China are Hanting Hotel, Home Inn, GreenTree Inn, 7 Days Inn, Jinjiang Inn, City Comfort Inn, Thank Inn Chain Hotel, Cloud Hotel, Elan Hotel and GreenTree Alliance, CR10 is 57.48%. Among them, Hanting Hotel, Home Inn, and GreenTree Inn ranked the top three, with market shares of 12.36%, 8.26%, and 8.06% respectively.

——For more detailed research and analysis of this industry, please see the "China Hotel Industry Development Prospects and Investment Strategic Planning Analysis Report" by the Qianzhan Industry Research Institute