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China Hotel Industry Development Prospects and Investment Strategy Report, 2013-2017

China Hotel Industry Development Prospects and Investment Strategy Report, 2013-2017

Last Update:2014-05-07

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Preface

Table of Content

The 2011 Shenzhen Universiade brings new opportunities to the development of China hotel industry. Meanwhile, under the good development environment of nationwide tourism, market scale of China hotel industry is expanding while operation effectiveness is increasing. According to the statistics system of National Tourism Administration, there are 13,908 star-grade hotels and 12,841 completed submittal star-grade hotels by the end of September, 2011; among which there are 578 five-star hotels, 2,123 four-star hotels, 5,642 three-star hotels, 3,667 two-star hotels and 221 one-star hotels. Averaged room price for China star-grade hotels in the third quarter of 2011 is 304.58 Yuan/room/night, and the averaged occupancy rate is about 65.29%. Income of each available guest room is 198.86 Yuan/room/night and averaged revenue of each guest room is 38,268.24 Yuan/room. All the data reflects that prospect for star-grade hotel is continuously optimistic.

Economic hotel enters the fast expanding era since 2011. China economic hotels are mainly distributed in the first tier cities like Shanghai, Beijing and Shenzhen presently. But with the obvious growth of property cost and reduction of expandable quality space in the first tier cities, economic hotels start to flourish in the third and fourth tier cities. Moreover, there are many advancing factors for the hotel industry with the government policy supports and the well developed macro-economic, such as the development of exhibition industry and tourism will bring a large sum of quality customers. Besides, as the consumption level is creasing and people pay more attention to spiritual enjoyment, topic hotels are more and more popular. There is a good development for China commercial hotels, tourism resorts and theme hotels in 2011.

In the aspect of market investment, the Home Inn purchased Motel in 2011 is definitely the biggest event in economic hotel industry. Hereafter, 7 Days Inn purchased Star-Days bring another heat for industry investment. In the meantime, hotel numbers for Home Inn, 7 Days Inn and HTHT are 1,002, 838 and 516 which rank the top three among China economic hotel brands by the end of the third quarter in 2011. The store number becomes the development priority for economic hotels of scale in the 2012 development planning.

The hotel corporation gains a relatively good development along with the good development of overall hotel industry. The international brand high-end chain-store hotels--such as InterContinental Hotels Group, Wyndham and Marriott--regard China as key development area and increase investment in China. The economic hotels are taking active actions to occupy the market and speed-up expanding pace, such as Home Inn, 7 Days Inn and HTHT. And there is a relatively fast revenue growth for many commercial hotels and tourism hotels on the premise of economy recovery and tourism development.

As the economy stably develops, the gradual improvement of living standard and transformation of living way and the fast development of business, exhibition industry and tourism greatly promote the development of hotel economy. Even though it is difficult to regain the peak which in 2010, prospect for hotel industry is wide and optimistic. And it is time for a new takeoff of hotel industry now.

 

Qianzhan Business Information Co., Ltd. Industry Research College
Research Team of Hotel Industry


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