Home>>China’s Top 50 Hospitality Groups Report 2020: Opportunities coexist with crisis
China Hospitality Association and its partner organizations jointly released the China’s TOP 50 Hospitality Groups Report 2020.
Jin Jiang International, with 8,606 properties and 873,177 rooms, was ranked the top hospitality group in the country, followed by Huazhu Group and BTG Homeinns Hotels, which had 536,876 rooms and 414,952 rooms respectively, according to the report.
The three largest hospitality groups in China captured a combined market share of more than 40%, with Jin Jiang accounting for 19.5%, Huazhu taking up 11.99%, and BTG Homeinns representing 9.27%.
Among the largest foreign-invested hotel brands, OYO ranked top with 114,585 rooms in total. While IHG had four brands in the top 10 list, including Crowne Plaze, Holiday Inn Express, Holiday Inn and InterContinental.
Covid-19 has profound impact on travel and hotel industries, yet opportunities coexist with crisis
While the pandemic has severely hit both the demand and supply of the hotel industry, many opportunities can be uncovered despite the hard time. With small-scale and low-end hotels facing closure due to lack of funds, the industry will be reshuffled, with more resources flowing to strong brands, which will help upgrade products and services for the benefit of the entire industry.
The outbreak of the coronavirus has made Chinese people more health-conscious and desire better lifestyle experiences. The fundamentals that empowered the boom of the hotel and travel industries will continue to be solid for the long-term after the pandemic.
Midscale hotels are still growing fast and playing a key role in China’s hotel industry
Driven by the growth of the middle-class, increasing demand for midscale hotels and leading chain hotel groups’ support for the upgrading of express hotels, midscale hotels are still keeping the momentum of rapid development, with the growth rate exceeding 50% for two consecutive years.
As of January 1, 2020, China’s midscale hotels had about 2.81 million rooms in total, accounting for only 16% of total room inventories. There is still great potential in the expansion of China’s midscale hotel market.
Economy hotels grow slowly, but opportunities exist in regional markets
Due to intensified competition, rising labor costs, rental prices and resources consumption, the aging of products, the changing consumer needs and the impact of Covid-19, the budget hotel market is becoming saturated and is now reaching a tipping point when the segment can no longer rely on user traffic to fuel development.
Nevertheless, there are still opportunities in some regional markets. In first- and second-tier cities, 264,000 hotels are small properties with fewer than 70 rooms. Currently only 9% of them have joined hotel chains.
At the same time, economy hotel chains can expand to the third- and fourth-tier markets, where there are 223,000 properties and the demand for budget hotels is still high.
Digital technologies will empower the hotel industry to transform and adapt to uncertainties
Impacted by Covid-19, hotels have shifted their focus from delivering an enjoyable lifestyle to finding a way to survive. Only one thing is certain after the pandemic – there will be more uncertainties. Digital transformation becomes imperative to hotels, as they need to improve efficiency and provide personalized services to customers based on their diverse needs.
