On December 8, the fifth station of "China Economic New Trend Forum and 2020 Huazhu World Conference" was held in Shanghai. Ji Qi, the founder of Huazhu Group, said that under the new dual-cycle pattern, local hotel groups have steadily expanded their mid-to-high-end market share on the basis of consolidating their original businesses through faith persistence, ability precipitation and value creation to boost The evolution of the national service industry is at the core, providing solid support for China's economy to build a second growth curve.
Hotels in the Yangtze River Delta release new vitality
Benefiting from the superior geographical location, profound cultural accumulation, perfect infrastructure and abundant tourism resources, the Yangtze River Delta urban agglomeration has always been a pioneer in the development of China's tourism industry. Looking back at the top 15 tourism revenues of China’s tourism cities in 2019, Shanghai (535.7 billion), Hangzhou (400.5 billion), Nanjing (278.5 billion), Suzhou (275.1 billion) and Ningbo (233.1 billion) all made the list. The Yangtze River Delta city cluster supported by large core cities constitutes the undoubted first square in the regional pattern of China's tourism industry.
Affected by the 2020 new crown epidemic, the domestic hotel industry has experienced periodic shocks. However, focusing on the Yangtze River Delta, the regional hotel industry has shown strong resilience due to the efficient urban management system and stable economic base in the region. Horwath released the "Report on Signing Contracts for Mid-range and Above Brand Hotels in Mainland China in the First Half of 2020", showing that in the first half of 2020, the number of hotel signings in the Yangtze River Delta region continued to increase slightly compared to the same period last year. Among them, Shanghai and Hangzhou were awarded first-tier and new first-tier cities. Champion; at the same time, many good things, including the signing of the Regional Comprehensive Economic Partnership Agreement by 15 Asia-Pacific countries and the approval of the world’s first new crown vaccine recently, have provided a solid foundation for the strong rebound of the hotel industry in the Yangtze River Delta in the post-epidemic era Confidence support.
In this context, Xu Xiaonian, a well-known economist, pointed out that China's economy is currently in a period of transition from old to new kinetic energy. The old kinetic energy is "investment" and the new kinetic energy is on the supply side. Under the international and domestic dual-cycle pattern, by releasing supply-side momentum and promoting supply-side reforms to invigorate the market, activating enterprises is the top priority. Only when enterprises develop first can they provide employment opportunities, increase people's income, and stimulate consumer demand. Therefore, enterprises are the core and key to social development. In the post-industrial era, competition continues to accelerate. Only by maintaining innovation and enhancing differentiated competitiveness can we expand market share, change business methods and business ideas, and occupy a leading position in the industry.
Based on the second growth curve
Regarding the "black swan" impact of the hotel industry in 2020, Ji Qi regards it as the biggest stress test for the hotel industry. In his speech, he pointed out that independent hotels and brand chain hotels have obvious differences in their pressure bearing capacity. Due to weaknesses in traffic, brand power, technology, and supply chain, a large number of individual hotels failed to survive this round of shock waves. From the perspective of strengthening anti-risk capabilities, the acceleration of hotel brand chaining in the post-epidemic era is the general trend.
Previously, domestic high-end hotels mostly appeared as real estate vassals. Most of the investment in star-rated hotels was not for profit. Their landing was mainly to increase the requirements of surrounding real estate sales premiums, resulting in serious product homogeneity and excessive pursuit of large and complete products. Obvious "non-marketization" characteristics have led to inefficient return on investment.
In response to the long-standing pain points of domestic high-end hotels, China Lodging has demonstrated unprecedented competitive advantages for local hotel brands. Ji Qi said that there are problems on the supply side of China’s hotel industry. The homogenization of high-end hotels has triggered price wars, but market demand has not been met for a long time. Huazhu hopes to provide consumers with a reliable and aesthetic product.
"Huazhu started as an economical hotel, and it is also capable of making high-star hotels with high aesthetic premiums." Ji Qi believes that the boundaries between urban resort hotels and business travel hotels are constantly blurring. Take Huajiantang as an example, as a non-profit organization. As a standard homestay brand, Huazhu has added new elements of urban vacation based on its genes, thus making this brand usher in a new turning point in its development, such as the newly opened Shanghai Bund Huajiantang·Yuyuan, soon after its opening It has attracted much attention and has now become a new landmark in the Bund. In addition, Huazhu's brands All Season, Orange, Orange Crystal, Manxin, etc. are all gaining momentum. At the same time, it also plans to introduce DH (Deutsche Hotel Group) hotel brands into the country to export Chinese services and accelerate the rise of local high-end brands. , Promote Oriental self-confidence.
At this conference, Huazhu also announced the cooperation with the mainland's only Michelin three-star Chinese restaurant brand Xin Rong Ji, the characteristic brand 1945 Chinese Tavern, the high-end dining brand Xijiao No. 5, the Oriental elegant lifestyle brand Shangxia, and the high-end sports and fitness brand Baodi Body Concept Pilates studio, domestic well-known health spa brand green massage, etc. have launched a series of strategic cooperation to enrich diversified business formats to increase non-customer income, comprehensively improve high-end hotel floor efficiency and human efficiency ratio, and shorten the investment return cycle. Allowing investors to join the high-end can also make money, so that high-end hotels truly become an investment tool rather than a face-saving project.
Talking about the future high-end strategy, Huazhu said that by the end of 2023, it will maintain the growth rate of at least 100 new stores every year, and realize the layout of 500 high-end brand stores nationwide.
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