——Foreseeing 2023: "Panorama of China's Hotel Industry in 2023" (with market size, competition landscape and development prospects, etc.)

Main listed companies in the hotel industry: Jinjiang Hotels (600754 ), Beijing Tourism Hotel (600258), Jinling Hotel (601007), Huatian Hotel (000428), Junting Hotel (301073), etc.

The core data of this article: the number of hotels in China; the number of star-rated hotels in China; Revenue scale of China's star-rated hotels; competitive landscape of China's hotel groups

Industry overview

1. Definition

Hotels provide customers with safe and comfortable short-term rest or commercial establishments for sleeping spaces. Hotel services generally include accommodation services and catering services. According to the "Classification and Rating of Tourist Hotel Star Ratings" (revised draft for comments) published by the National Tourism Standardization Technical Committee in May 2022, star-rated hotels are divided into 1, 2, 3, 4 and 5 stars, with the lowest being one star and the highest Platinum five-star rating.

2. Industry chain analysis: there are many upstream industries involved

The upstream of China's hotel industry chain mainly includes suppliers of house rentals and supporting furniture, as well as food and beverages, hotel supplies, Suppliers of smart hotel solutions. The middle reaches of the industry include hotels of different levels, mainly including high-end star hotels, mid-range star hotels and budget hotels. Downstream customers include tourism customers, business customers and other customers. Hotel ordering channels mainly include travel agencies, online platforms or direct in-store ordering. The industrial chain of China's hotel industry is shown in the figure below:

From the perspective of the major participants in China's hotel industry, the upstream mainly includes hotel real estate operating companies such as Vanke, China Resources, R&F, and China Merchants Shekou, as well as Senyuan Furniture, Jin Furniture manufacturers such as Phoenix, mid-range high-end hotels mainly include Jinling Hotel, Hilton, Shangri-La, Jianguo Hotel, etc., mid-range star-rated hotels mainly include All Seasons Hotel, Shanshui Fashion Hotel, Starway Hotel, Lavande Hotel, etc., and budget hotels include Such as Home, Qitian, Hanting, Jinjiang Inn, etc. Hotel ordering channels mainly include travel agencies such as China International Travel Service and travel hotel booking platforms such as Ctrip.

Industry Development History: Entering the Smart Transformation Stage

The development of China’s hotel industry has mainly gone through six stages. With the continued growth of national income and the accumulation of hotel industry development experience, hotels The industry has moved from the early exploration stage to the upgrade and transformation stage. Especially driven by the wave of digital change, smart hotels have emerged.

Industry policy background: Policies to ease the pressure of the epidemic

Since 2020, in order to help the hotel industry operate smoothly during the epidemic, the country has successively promulgated the "On Promoting the Recovery and Development of Difficult Industries in the Service Industry" "Several Policies" and other policies, the main measures include providing high-value loans. The key policies of the hotel industry are summarized as follows:

Current development status of the industry

1. Number of hotels: The number of star-rated hotels fluctuates and decreases

According to statistics from the China Hotels Association, From 2016 to 2021, the number of hotels nationwide first increased and then declined, reaching a peak of 344,000 in 2018. As of January 1, 2022 (excluding requisitioned quarantine hotels), there were a total of 252,000 hotel industry facilities nationwide, a decrease of 9.68% from 2020.

Judging from the number of star-rated hotels reported to the Ministry of Culture and Tourism, it has shown a fluctuating downward trend since 2016. There are only 7,676 hotels in 2021, a decrease of 747 hotels compared with 2020 and a decrease of more than 2,200 hotels compared with 2016.

Note: The Ministry of Culture and Tourism’s data only covers hotels reported to the Ministry of Culture and Tourism.

2. Star-rated hotel revenue: The overall revenue in 2021 will recover compared with 2020

The revenue scale of China's star-rated hotel industry was relatively stable from 2016 to 2019. In 2020, affected by the epidemic Due to the impact, the hotel market has shrunk significantly, and industry revenue will resume growth in 2021, but the current overall operating pressure is still high.

In 2021, judging from the changes in the revenue scale of different star hotels, the revenue of one-star and two-star hotels in 2021 will decrease by 69.57% and 9.44% respectively compared with 2020; three-star and above Hotel revenue has increased. Among them, the revenue of five-star hotels will reach 55.124 billion yuan in 2021, an increase of 16.16% compared with 2020, and the fastest growth among hotels with three stars and above.

The current status of the downstream development of the industry:

1. Tourism industry: The total number of tourists has resumed growth

The domestic epidemic situation will improve in 2021, and the tourism industry will gradually open up. The tourism economy is in a recovery period, and tourists' consumption psychology is still cautious, but compared with the same period in 2020, it has begun to become more positive. The total number of domestic tourism arrivals in China in 2021 was 3.246 billion, a year-on-year increase of 12.8%. In the first three quarters of 2022, the total number of domestic tourism arrivals was 2.094 billion, a year-on-year decrease of 22.1%.

2. Convention and Exhibition Industry: The number of conventions and exhibitions in 2021 is 5,495

The number of exhibitions in China showed a fluctuating growth trend from 2011 to 2019. In 2020, there was a significant decline due to the impact of the epidemic. In 2021, 5,495 offline economic and trade exhibitions were held across the country, an increase of 1.59%. Although it is lower than the 11,033 games in 2019, there is a recovery growth trend.

Industry competition pattern

1. Regional competition: the number of hotels in first-tier cities accounts for 7%

China’s first-tier cities, sub-provincial and provincial capital cities in 2021 The number of hotels in these three major areas of , and other cities reached 18,000, 73,000, and 161,000 respectively, accounting for 7%, 29%, and 64% respectively.

2. Hotel group competition: Jin Jiang International Group ranks first in the number of guest rooms

Among Chinese hotel groups in 2021, Jin Jiang International Group, Huazhu Hotel Group, and BTG Home Inn Group , Green Hotel Group, Dongcheng Group, Shangmei Life Group, Atour Group, Delu Group, Yibo Hotel Group, Fengyue Hotel and Resorts rank among the top ten in the country in terms of number of guest rooms, of which Jinjiang International Group’s guest rooms account for more than 22% , ranking first in the industry.

Industry development prospects and trend predictions

1. Industry development trends: intelligence, chaining, and compound transformation

With the Internet of Things, big data, and cloud With the increasing maturity of technologies such as computing and artificial intelligence, using smart terminals as carriers to efficiently manage hotel business through informatization and digitalization has become a development trend to solve the long-standing problems of serious homogeneity, complicated check-in procedures, and huge human communication costs in the hotel industry. question.

In recent years, China's hotel industry has shown signs of consolidation. The total number of hotels has declined but the number of chain hotels has continued to rise. As of the end of 2021, China's hotel chainization rate is about 35%, but it is still far lower than the 60%-70% level in mature European and American markets. There is still a lot of room for improvement in the future. In addition, international high-end star hotels are also deploying in the Chinese market and will compete head-on with Chinese chain companies.

In the context of consumption upgrading, "hotel +" composite functions have become a new design trend. Hotel consumers have shifted from price-sensitive to service-sensitive, and have integrated their personal life experience needs into their demand for hotel accommodation.

2. Industry development prospects: Star hotel revenue will exceed 200 billion yuan in 2027

The COVID-19 epidemic has fluctuated greatly since 2022, and the epidemic has spread in many places in China. Hotels , tourism and other industries have been greatly affected, but at the same time, national and local policies are actively reducing the burden on enterprises, accelerating the resumption of operations, and epidemic prevention and control capabilities are gradually improving. Considering that the COVID-19 epidemic cannot be completely eliminated for the time being, it is expected that China will still be affected in the next three years or so. However, the improvement of prevention and control capabilities will help hotel companies gradually resume normal operations. It is expected that by around 2024, the revenue of China's star-rated hotels will basically return to Levels in 2018 and 2019, star hotel revenue will reach more than 200 billion yuan by 2027.

For more detailed research and analysis on this industry, please refer to the "China Hotel Industry Development Prospects and Investment Strategic Planning Analysis Report" by the Qianzhan Industry Research Institute.