--Foreseeing 2023: "China's Hotel Industry Panorama 2023" (with Market Size, Competitive Landscape and Development Prospects, etc.)
Major Listed Companies in Hotel Industry: Jin Jiang Hotel (600754), Shouyou Hotel (600258), Jinling Hotel (601007), Huatian Hotel (000428), Juntin Hotel (301073), etc.
The core data of this article: China's number of hotels;China's number of star-rated hotels;China's star-rated hotels revenue scale;China's hotel group competition pattern. /p>
Industry Overview
1. Definition
Hotels are commercial organizations that provide customers with safe and comfortable space for short-term rest or sleep. Hotel services generally include accommodation services and food and beverage services. According to the Classification and Rating of Tourist Hotel Stars (Revised Draft for Public Comments), which was made public by the National Tourism Standardization Technical Committee in May 2022, star-rated hotels are classified into one, two, three, four, and five stars, with the lowest being a one-star rating and the highest being a platinum five-star rating.
2, industry chain analysis: the upstream involved in the industry more
China's hotel industry chain upstream mainly includes housing rental and ancillary furniture and other suppliers, as well as food and beverage, hotel supplies, smart hotel solutions and other suppliers. The midstream of the industry consists of different levels of hotels, mainly including high-end star-rated hotels, mid-range star-rated hotels, and budget hotels. Downstream customers include travelers, business customers and other customers, and hotel ordering channels mainly include travel agencies, online platforms or direct in-store orders. The industrial chain of China's hotel industry is shown in the following diagram:
From the perspective of the main participants in China's hotel industry, the upstream mainly includes hotel real estate operating enterprises such as Vanke, China Resources, Fuli, China Merchants Shekou, and furniture manufacturers such as Moriyuan Furniture and Jinfenghuang, etc., the midstream high-end hotels mainly include Jinling Hotel, Hilton, Shangri-La, Jianguo Hotel, etc., and the mid-end star-rated hotels mainly include All Seasons Hotel, Shanshui Fashion Hotel, Xing Cheng Hotel, Li Feng Hotel, etc., and economy hotels including Ruijia, Seven Days, Hanting, Jinjiang Star, etc. Hotel ordering channels mainly include travel agencies such as China National Travel Service (CITS) and travel hotel booking platforms such as Ctrip.
Industry development history: entering the stage of intelligent transformation
The development of China's hotel industry has gone through six main stages, with the continuous growth of national income and the accumulation of experience in the development of the hotel industry, the hotel industry has gone from the early stage of exploration, into the stage of upgrading and transformation, especially in the digitalization of the wave of change, the smart hotels have come into being.
Industry Policy Background: Policies to Soothe the Pressure of the Epidemic
Since 2020, in order to help the hotel industry to operate smoothly in the epidemic, the state has promulgated a number of policies such as "Several Policies on Promoting the Resumption of Development of Difficult Industries in the Field of Services," and other policies, and the main measures include the provision of high-cost loans. The key policies of the hotel industry are summarized as follows:
Industry development status
1. Number of hotels: the number of star-rated hotels fluctuates and declines
According to the statistics of China Hotel Association, the number of hotels in the country will firstly grow and then decline from 2016 to 2021. It peaked at 344,000 in 2018. As of Jan. 1, 2022 (excluding segregated hotels that have been expropriated), the nation's hotel industry facilities*** counted 252,000, a decline of 9.68 percent compared with 2020.
From the number of star-rated hotels reported to the Ministry of Culture and Tourism, there has been a fluctuating downward trend since 2016, with only 7,676 hotels in 2021, a decrease of 747 hotels from 2020, and a decrease of more than 2,200 hotels from 2016.
Note: The data from the Ministry of Culture and Tourism only covers hotels reported to the Ministry.
2, star-rated hotel revenue: overall revenue recovery in 2021 compared to 2020
2016-2019 China's star-rated hotel industry revenue scale is relatively stable, 2020 by the impact of the epidemic, the hotel market contracted sharply, the industry revenue in 2021 to return to growth, but at present the overall operating pressure is still large.
In 2021, from the point of view of the change in the revenue scale of different star-rated hotels, the revenue of one-star and two-star hotels in 2021 decreased by 69.57% and 9.44% respectively compared with 2020; three-star and above hotels revenue are all growing, of which five-star hotels in 2021 reached 55.124 billion yuan in revenue, an increase of 16.16% compared with 2020, and in three-star and above The fastest growth in hotels.
Industry downstream development status:
1, tourism industry: the total number of tourists resumed growth
In 2021 the domestic epidemic has improved, and the tourism industry is gradually opening up. The tourism economy is in a period of recovery, and tourists' consumption psychology is still cautious, but compared with the same period in 2020, it has begun to tend to be positive. 2021 China's total domestic tourist arrivals amounted to 3.246 billion, an increase of 12.8% year-on-year. 2022 the first three quarters of the year, the total number of domestic tourist arrivals amounted to 2.094 billion, a year-on-year decline of 22.1%.
2. Exhibition industry: the number of convention and exhibition exhibitions in 2021 was 5,495
The number of exhibitions in China showed a fluctuating growth trend from 2011-2019, and there was a big drop in 2020 due to the impact of the epidemic. 5,495 offline trade and economic exhibitions were held nationwide in 2021, an increase of 1.59%. Although lower than the 11,033 exhibitions in 2019, it showed a restorative growth trend.
Industry Competition Pattern
1. Regional Competition: the number of hotels in first-tier cities accounted for 7%
In 2021, the number of hotels in three major regions, namely, China's first-tier cities, sub-provincial and provincial capitals, and other cities, respectively, reached 18,000, 73 million, and 161,000, accounting for 7%, 29%, and 64%, respectively.
2. Hotel Group Competition: Jinjiang International Group Ranks No. 1 in Number of Rooms
In 2021, among China's hotel groups, Jinjiang International Group, China Residence Hotel Group, Shouyou Ruijia Hotel Group, Grimm Hotel Group, Dongcheng Group, Somerset Life Group, Yaddo Group, Dehazi Group, Yibai Hotel Group, and Windy Hyatt Hotels & Resorts ranked among the country's top in number of rooms. and resorts ranked among the top 10 in the country in terms of the number of rooms, with Jinjiang International Group accounting for more than 22% of the rooms, ranking first in the industry.
Industry Development Prospects and Trend Forecast
1, the industry development trend: intelligent, chained, composite transformation
With the Internet of Things, big data, cloud computing, artificial intelligence and other technologies are becoming increasingly mature, with intelligent terminals as a carrier through the information technology, Digital efficient management of hotel business has become a development trend to solve the hotel industry's long-standing problems of serious homogenization, complicated check-in process and huge human communication costs.
In recent years, China's hotel industry has shown signs of consolidation, with the total number of hotels declining but the number of hotel chains continuing to rise. By the end of 2021, China's hotel chain rate was about 35%, but still far below the level of 60%-70% of the mature markets in Europe and the United States, and there is still a lot of room for improvement in the future. In addition, international high-end star-rated hotels are also in the layout of the Chinese market, will be in the Chinese chain enterprises to start head-on competition.
In the context of consumer upgrading, "hotel +" composite function has become a new design trend. Hotel consumers are shifting from price-sensitive to service-sensitive, and are integrating their personal life experience needs into their demand for hotel accommodation.
2, industry development prospects: 2027 star hotel revenue of more than 200 billion yuan
2022 since the new crown pneumonia epidemic fluctuations, China's epidemic in many places to disseminate the situation, the hotel, the tourism industry and other industries have been affected by the impact of not small, but at the same time, the national and local policies are also actively reducing the burden on enterprises, to speed up the recovery of operations, epidemic prevention and control, and to reduce the burden on enterprises, to reduce the burden on enterprises. However, at the same time, national and local policies are actively reducing the burden on enterprises, accelerating the resumption of business, and gradually improving the ability to prevent and control epidemics. Considering that the new crown epidemic can not be completely lifted for the time being, it is expected that China will still be affected in the next three years or so, but the improvement of prevention and control capabilities will help hotel companies gradually return to normal operations, it is expected that China's star-rated hotel revenues basically recovered to the level of 2018 and 2019 by 2024 or so, and the star-rated hotel revenues will reach more than 200 billion yuan by 2027.
For more research and analysis of this industry, please refer to China Hotel Industry Development Outlook and Investment Strategy Planning Analysis Report by Prospect Industry Research Institute.