Maidian Research Institute: China Hotel Industry Development Report in April 2023

Market dynamics summary

1. Monthly overview: Market prosperity continues to rise, and the "May Day" holiday has triggered a wave of hotel searches

As the market gradually picks up, this year's May Day holiday ushered in a peak travel period. At the beginning of the second quarter, the peak tourism season and market recovery made May Day a hot topic for major media. In April, the A-share tourism and hotel sector soared, and the overall tourism sector continued to rise. In order to ignite the enthusiasm for travel, favorable policies have been continuously introduced in various places, and the fuel surcharge for domestic flights has been reduced. The Ministry of Culture and Tourism announced on April 13 that it will organize activities to promote cultural and tourism consumption in 2023.

Business empowerment has accelerated the recovery of hotel performance. Driven by "retaliatory tourism", "retaliatory business trips" and "retaliatory meetings", the hotel and tourism industry has taken advantage of the spring breeze to counterattack. According to Qichacha data, in the first quarter of 2023, China added 88,000 hotel-related companies, a year-on-year increase of 24.0%, and the marketization and diversification trend of hotel and tourism was obvious. According to the business travel white paper released by Ctrip Business Travel, the average confidence index of business travelers and companies in the recovery of business travel reached 8.5 points. Nearly 90% of "business travelers" expressed a high willingness to travel, and they were more eager for a "comfortable", "safe" and "efficient" travel experience.

The "May Day" travel season is unleashed, and high-quality, high-service hotels are highly favored. As of April 14, the search popularity of the domestic hotel market during the 2023 "May Day Golden Week" has reached more than 9 times that of the same period of May Day in 2022, and has also increased by nearly 200% compared to the same period of May Day in 2019. In addition, digital hotel data shows that the market share of small and beautiful hotels, boutique homestays, and high-end resort hotels during the May Day period has increased significantly compared to the same period in 2019.

The hot barbecue economy in Zibo has driven the development of the entire industry. Relevant data show that Zibo, which became a traffic star in early March, saw an 800% increase in accommodation reservations during the May Day holiday compared to 2019, ranking first in Shandong Province. Data from the Zibo Municipal Finance Bureau showed that the local general public budget revenue in the first quarter was about 11.1 billion yuan, a year-on-year increase of 4%.

2. Brand opening and signing: 115 new hotels opened in April, with mid-range and mid-to-high-end hotels accounting for more than half

Brand hotel openings: According to incomplete statistics from Maidian Research Institute, 115 new hotels opened in April. In terms of hotel type, mid-range hotels accounted for the largest proportion, with 36, of which 9 Vienna hotels opened; followed by mid- to high-end hotels, with 32; economy hotels ranked third with 13; followed by light mid-range hotels, domestic high-end hotels, international high-end hotels and boutique B&Bs.

Hotel brand signing: In April, with the continuous improvement of the market and policy, the investment in hotel and tourism rebounded and ushered in a big explosion. According to incomplete statistics, 201 new projects were signed in the Chinese hotel market in April 2023, among which IU Hotel signed 24 new projects, 7 Days Inn signed 17 projects, and Vienna Hotel signed 15 projects, which is commendable. In terms of brand type, 63 mid-to-high-end hotels were signed, 53 mid-range hotels were signed, 35 light mid-range hotels were signed, and 19 boutique homestays were signed, followed by 17 economy hotels, 7 domestic high-end hotels, 6 international high-end hotels, and 1 luxury hotel.

Hotel personnel appointments: According to incomplete statistics from Maidian Research Institute, a total of 24 senior executives took up new positions in April 2023, involving dozens of luxury and high-end hotels such as Preferred Travel Group, Yifei Hotels, InterContinental Hotels, Wyndham Grand Hotels, and Marriott Hotels.

3. Brand expansion and renewal: The group's all-round strategic cooperation is mutually beneficial and win-win, and "new forces" are pouring into the hotel and tourism market

Brand promotion and upgrade: First, BTG Homeinns Hotel Group unveiled the newly upgraded Ru LIFE Club and officially announced the mid-to-high-end business and leisure hotel brand - Feiman Hotel. The original intention of the new upgrade of Ru LIFE Club is to fully connect member hotel accommodation, ecological consumption and interactive social scenes, while increasing the frequency of member interaction, increasing member stickiness and loyalty, and comprehensively enhancing member value and rights perception.

Hotel strategic cooperation: First, Licheng Group has strategically cooperated with Instar Hotel Management to jointly develop Luanxi E-sports Hotel. This cooperation is a strategic cooperation at the group level of both parties. The two parties will integrate their respective advantageous resources to build the Luanxi E-sports Hotel brand into a benchmark in the e-sports hotel industry and jointly promote the high-quality development of the e-sports hotel industry; Second, Hyatt Hotels Corporation and Zhejiang Tourism Vocational College will work together to cultivate outstanding hoteliers. The two parties will work together to jointly create an industry-education integration practice base, jointly build a hotel teaching resource library, and mutually employ experts to jointly cultivate outstanding hotel talents who understand theory and are good at coordination, and create a great China service; Third, Westin Hotels & Resorts and Abbott World Marathon Majors reached the first hotel cooperation relationship for the series of events. Some of Westin's hotels in Boston, London, Berlin, Chicago, New York and Tokyo will participate in this cooperation; Fourth, Jinjiang International Group and Juneyao Group signed a strategic cooperation agreement. The signing of this agreement will further promote the integration and upgrading of the two industries. According to the agreement, the two parties will leverage their advantageous resources to achieve in-depth cooperation in many aspects such as platform channels, customer systems, business resources, and marketing promotion; Fifth, Wanda Hotel and the School of Hotel and Tourism Management of the Hong Kong Polytechnic University signed a talent strategic cooperation memorandum. In the future, the two parties will conduct in-depth cooperation in "talent management, academic research, school-enterprise co-construction, knowledge exchange" and other aspects, and jointly provide industry talents with opportunities and platforms for rapid growth and development; Sixth, Airbnb has reached a cooperation with Starwood Capital Group to provide properties with short-term rental qualifications to attract tenants who want to become landlords.

In terms of market expansion: First, Hyatt launched a new mid-to-high-end brand, Hyatt Studios, to enter the American market; second, Marriott plans to open more than 100 new hotels in India in the next two years and expand its business scope to 50 cities in India; third, by 2025, the number of Banyan Tree Group's hotels worldwide will expand to 113. The Willow Hotel brand, one of the five new brands launched last year, surpassed Banyan Tree to become the fastest growing brand of the group.

4. Hotel asset transactions: Auctions continued to be frequent in April, and the existing market was favored

As the hotel and travel market gradually matures, supply and demand tend to fit, and more and more rigid hotel problems are highlighted, such as cash flow shortages, lagging service management, and outdated properties. They are re-sorting out their strategic positioning in the market, and auctions and flips are emerging in an endless stream. According to incomplete statistics from Maidian Research Institute, in April 2023, a total of 13 hotels were auctioned, covering all standards and types of hotels, and the Radisson Hotel operating rights (GOP operating profit, i.e. operating gross profit) were auctioned. The large-scale sale of hotel assets is, on the one hand, the subjective reason for their own poor management, and on the other hand, the objective existence of the market customer demand update. The dual impact of aging mechanisms and new forces has allowed more and more hotels to board the trading platform.

5. Corporate revenue: Growth in the first quarter turned losses into profits, and performance rebounded across the board with a positive trend

Top 100 List of the Month

The following is the "Top 100 Hotel Brand Influence List in April 2023" exclusively released by Maidian Research Institute. This month, Vienna Hotel, Jinjiang Hotel, InterContinental Hotel, Hilton Hotel, Atour Hotel, Marriott Hotel, Home Inn, Sheraton Hotel, Hyatt Hotel, and 7 Days Hotel entered the top ten of the list. In the top 100 list this month, a total of 33 brands ranked higher than the previous month, 52 brands ranked lower than the previous month, and 2 brands ranked unchanged. This month, a total of 14 hotel brands entered the top 100 list, namely: Ou Xia Mediterranean Hotel, Wanda Meihua Hotel, Wanda Yihua Hotel, Auster Hotel, Park Plaza Hotel, Wanxin Zhige Hotel, Libo Hotel, Wanda Yuehua Hotel, eLong Hotel, Huajiantang, Wanda Jinhua Hotel, Hilton Garden Inn, JW Marriott Hotel, and Hotel Indigo.

Brand segmentation list

1. Hotel brand type distribution

1) Hotel type distribution and brand index

In the April 2023 category list, mid-range hotel brands have the largest number of brands, at 427, while luxury hotel brands have the smallest number of brands, at 74. In terms of brand index, international high-end hotels have the highest brand index, with an average of 227.53, while boutique homestays have the lowest brand index, with an average of 145.60.

With the rapid recovery of the hotel and tourism market, hotel investment has also ushered in an important window, among which mid- to high-end hotels have become the first choice for hotel investors. Data shows that from 2021 to 2025, mid- to high-end chain hotels will be the fastest growing market segment in the entire hotel industry. This month, the 2nd Anniversary Ceremony and Investment Appreciation Conference of Elong Hotel with the theme of "Art Realm·Tenglong" was held in Suzhou. At the meeting, Elong Hotel announced that it will accelerate the layout of the mid- to high-end hotel market in the future and create a new benchmark in the industry with the power of Elong Hotel's technology platform.

2) Hotel type breakdown list

2. Hotel brand theme distribution

1) Hotel theme distribution and brand index

According to the data from Maidian Research Institute, in the distribution of hotel themes in April 2023, business hotels accounted for the largest proportion, as many as 147; trendy hotels accounted for the smallest proportion, with only 13. In terms of the average brand index, trendy hotels, business hotels, and lifestyle hotels ranked in the top three; the average brand index of e-sports hotels was the lowest, at 147.97. Its brand is in the market cultivation period and is relatively niche. However, in recent years, the development of the e-sports market cannot be underestimated. According to the "February 2023 E-sports Hotel Data Report", the total number of e-sports hotel stores in China exceeded 20,000 in February 2023, an increase of 3.12% month-on-month. The average occupancy rate of e-sports hotels reached more than 60%, and the number of consumers exceeded 18 million.

2) Hotel theme segmentation list

3. Hotel brand regional distribution

1) Hotel regional distribution and brand index

In the regional hotel distribution in April 2023, national brands have the largest number, with 629; followed by East China regional brands, with 401; and then global brands, with 204. From the perspective of regional hotel brand indexes, global brands lead with an absolute advantage, followed by national, South China, Northeast China, Central China, Northwest China, East China, Southwest China, and North China. The average brand index of each region is 165.28, and global and national brands are higher than the average.

In April, under the dual influence of supply and demand, the upgrading trend of domestic hotel chains was obvious. Data showed that the overall chain rate of hotels in my country increased from 19% in 2018 to 35% in 2021. The continuous evolution of the chain trend has continuously enhanced the concentration of leading hotel companies, and major hotel groups have also launched brand expansion. In the first quarter of 2023, Jinjiang Hotels (China) not only took the lead in leading the industry recovery, but also achieved new highs in the overall occupancy rate, room prices, and RevPAR of hotels across the country, showing a good trend of "increasing both quantity and price". At the same time, it exceeded the indicators of newly signed hotels and opened hotels, leading the industry.

2) Hotel regional segmentation list

Brand Index Analysis

1. Brand Index Analysis

In April, both the top 100 list and the overall hotel brand index showed an upward trend. The average brand value of the TOP100 was 397.14, up 1.78% month-on-month; the average overall hotel brand index was 172.16, up 0.50% month-on-month. The market has fully recovered. Since January 2023, hotel data have shown a steady upward trend. The average value of the TOP100 hotel brand index has increased more significantly, and the gap with the overall hotel brand average has opened up a more obvious gap. This reflects the strong recovery ability and market responsiveness of the leading hotels after the epidemic.

2. Brand Index Dimension Analysis

1) Media Index

Judging from the average media index, the average media index of the overall hotel brands this month is 8.95, up 1.59% from the previous month. Judging from the media performance of hotel brands, Jinjiang Hotels, InterContinental Hotels, Hilton Hotels, Marriott Hotels, Club Med, Sheraton Hotels, Vienna Hotels, Hyatt Hotels, Crowne Plaza Hotels and Holiday Inn Hotels ranked in the top ten. The top ten hotels with the fastest month-on-month improvement were Traveler Inn, Tuke Shanglin Hotel, Anyi Hotel, Ruipin Hotel, Gusu Courtyard, Licheng Langyu Hotel, M Hotel, Love Tree B&B, Flower House B&B and Hilton Garden Inn.

In April, the media focused on InterContinental Hotels Group's May Day hotel operating data and hotel contracts. First, InterContinental Shanghai Dishui Lake opened, and all hotel rooms were fully booked during the May Day holiday. Second, in the 2023 InterContinental Hotels Group Tour and Owners' Tasting Conference, as many as 24 new hotels were successfully signed, involving Voco Hotels, Eternal Hotels and Holiday Inn Express brands under InterContinental Hotels Group.

2) Search Index

From the average search index, the average search index of the overall hotel brand this month is 2.98, up 21.63% from the previous month. From the city distribution of potential customer groups of hotel brands, the frequency of customer searches in Shandong Province, Hebei Province, Henan Province and other places is relatively high. According to the monitoring of Maidian Research Institute, the top ten hotels with the highest potential customer attention this month are Jinjiang Hotel, Vienna Hotel, Chaoman Hotel, ZMAX HOTELS, Liyi Hotel, Wanxin Zhige Hotel, Park Plaza Hotel, James Joyce Hotel, Yunfuli Hotel, and Magnolia Hotel. The top ten brands with the fastest search index increase are Hello Hotel, Mercure Hotel, Wanda Meihua Hotel, Rest Yizhi Hotel, Grand Skylight Hotel, Guizhou Hotel Group, Lavande Hotel, Langlizi Hotel, Huiyu Hotel, and James Joyce Hotel. The rapid recovery of the market has led to retaliatory consumption for business travel, and the accumulated business demand has made business hotels popular. As benchmark business hotels, Hello Hotel and Langlizi Hotel ranked among the top ten in terms of search popularity in April.

3) Operation Index

From the perspective of the average value of the operation index, the average value of the overall hotel operation index this month is 4.86, a decrease of 1.22% from the previous month. The top ten hotel brands in the operation index this month are Hyatt Hotel, Grand Hyatt Hotel, Club Med, Vienna Hotel, Renaissance Hotel, InterContinental Hotel, Four Seasons Hotel, Atour Hotel, Park Hyatt Hotel, and Hilton Garden Inn. The top ten hotel brands with the fastest improvement are Wanda Meihua Hotel, Wanda Jinhua Hotel, Wanda Yihua Hotel, Wanda Yuehua Hotel, Junyu Hotel, Wanda Anyue Hotel, Grand Le Hotel, Disney Hotel, Fuyi Fashion Hotel, and Wanda Amber Hotel. In April, Wanda Hotels and Resorts continued to be active on the Internet platforms of Weibo and WeChat, which was mainly reflected in the hotel's global strategic layout and other aspects.

4) Review Index

From the average review index, the average review index of all hotel brands this month is 155.37, and the online reputation has increased compared with last month. The top ten hotel brands in the review index this month are Atour Hotel, Lavande Hotel, Jinjiang Inn, Home Inn, Vienna Hotel, Vienna International Hotel, City Convenience Hotel, James Joyce Coffetel, 7 Days Inn, and All Seasons Hotel. The top ten hotel brands that have risen are Duogao Hotel, Yunfei Hotel, Xirui Hotel, Elong Meicheng Hotel, Yuansu Zhilian Hotel, 318 Motel Chain, Yueyuan Hotel, Ruipin Hotel, Walk TIME B&B, and Meiyue Hotel. In April, Atour Hotel's products and services continued to be online, and the reviews mainly focused on the superior surrounding environment, complete hotel facilities and equipment, and good service attitude.

With the comprehensive optimization and adjustment of prevention and control policies, consumers' confidence in travel has increased, the industry has recovered steadily, and the development environment of the accommodation industry is favorable and bright. With the gradual weakening of entry and exit restrictions, the macro-economy has entered a period of climbing. The demand for international business travel and conferences and exhibitions has provided an important impetus for the rise of the domestic accommodation industry. The booming hotel and travel market after the Spring Festival has allowed practitioners to see a new high in the industry. However, after three years of testing, the growth rate of the hotel industry, which has expanded rapidly after the reform, has slowed down, and the market has gradually entered a benign development. The sinking market and the stock market have become the focus of investment. However, the deep-rooted ills of the accommodation industry have gradually emerged in the process of barbaric growth. The problem of hotel staff shortage is difficult to reverse; holiday bookings are hot, price increases and breaches of contracts are repeatedly banned; problems such as poor service quality and customer information leakage are endless. Compared with the more mature hotel and travel market, the development of China's hotel industry still has huge development potential.