2022
0
China Hotels Market Report 2022
2023-01-11T03:04:06+00:00
OX1101443
3695
159209
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Report
en_GB
“China’s hotel volume started to shrink in 2018 due to the scale enlargement of individual hotels, and has been hugely impacted by the COVID pandemic, with a great number of…

China Hotels Market Report 2022

£ 3,695 (Excl.Tax)

Report Summary

“China’s hotel volume started to shrink in 2018 due to the scale enlargement of individual hotels, and has been hugely impacted by the COVID pandemic, with a great number of small-to-medium hotels closing down while the growing number of mid-scale hotels led the market recovery trend. Hotels are advised to make digital and automated transformations to elevate operation efficiency and hedge the risk of labor shortage and cost increase. Mid-scale hotels can focus on upgrading their catering services and in-room facilities, while upscale/luxury hotels are advised to target high budget consumers such as families with kids and pets with high quality personal care products, health, stress releasing and entertainment services.”

– Shannon Liu, Senior Research Analyst

Key Issues covered in this Report

  • Market size and forecast of China’s domestic hotel market with detailed analysis on the drivers and barriers.
  • Innovative practices by hotel companies that can be inspirational to stakeholders in the hotel industry.
  • Consumer usage of different types of accommodations in the last 12 months, deep diving into consumer demographics and segments.
  • Analysis of changes to reservation channels used when booking hotels.
  • Future business opportunities in terms of consumers’ interest in amenities and services; explore consumer needs across high/mid/low budget levels.

Table of Contents

  1. Overview

    • What you need to know
      • Key Issues covered in this Report
        • Covered in this Report
        • Executive Summary

            • The market
              • Overall hotel market size shrinks since 2018
                • Figure 1: total number of hotels and rooms revenue, China, 2016-22 (est)
                • Figure 2: Best- and worst-case forecast for total number of hotels, China, 2022-27
                • Figure 3: Best- and worst-case forecast for rooms revenue, China, 2022-27
              • Economy hotels segment giving its share to the mid-scale hotels
                • Figure 4: Total number of hotels, by segments, China, 2016-22(est)
              • Mid-scale segment size leads the upward trend
                • Figure 5: Segment share, by total number of hotels, 2016-22 (est)
              • Luxury segment is a major focus for hotel brands’ expansion
                • Figure 6: Segment share, by total rooms revenue, 2016-22 (est)
              • Companies and brands
                • Domestic hotel brands dominate the market with continuous expansion
                  • Figure 7: Company shares, by total guest room units, 2020-21
                • Leading hotels targeting second-tier or lower cities with chain expansion strategy
                  • Health and fitness themed hotel energized the hotel industry
                    • Digital innovation centering around consumer interests
                      • Hotels embracing the metaverse
                        • Experiential marketing is trending to target Gen Z
                          • The consumer
                            • Mid-scale and vacation rentals show the highest popularity
                              • Figure 8: Penetration of Accommodations by travel type, 2022
                            • OTAs remain as the dominant reservation channel
                              • Figure 9: Reservation channels for leisure trips, 2022
                            • Majority of consumers hold a budget of RMB1,000-3,000 for a premium hotel stay
                              • Figure 10: Most expensive stay per night, 2022
                            • Relaxing services and kid’s facility indicate the highest consumer interest
                              • Figure 11: Interested Amenities and services – out of room, 2022
                            • Hotel location is a critical factor
                              • Figure 12: Consideration factors when choosing accommodation, 2022
                            • High interest to use in-room catering service and high-quality personal care products
                              • Figure 13: Interested amenities and services in-room, August 2022
                            • What we think
                            • Issues and Insights

                              • Marketing brand characteristics via carefully selected personal care products
                                • The facts
                                  • The implications
                                    • Food service and in-room facilities upgrade can help mid-scale hotels and BNBs stand out
                                      • The facts
                                        • The implications
                                          • Start to embrace metaverse by joining real-world with virtual services
                                            • The facts
                                            • Market Size and Forecast

                                              • Overall hotel market size shrinks since 2018
                                                • Figure 14: total number of hotels and rooms revenue, China, 2016-22 (est)
                                                • Figure 15: Best- and worst-case forecast for total number of hotels, China, 2022-27
                                                • Figure 16: Best- and worst-case forecast for rooms revenue, China, 2022-27
                                            • Market Segmentation

                                              • Economy hotels giving away share to the mid-scale
                                                • Figure 17: Total number of hotels, by segments, China, 2016-22(est)
                                                • Figure 18: total rooms revenue (RMB billion), by segments, China, 2016-22 (est)
                                              • Mid-scale segment size leads the upward trend
                                                • Figure 19: Segment share, by total number of hotels, 2016-22 (est)
                                                • Figure 20: Best- and worst-case forecast for number of mid-scale hotels, China, 2022-27
                                              • Luxury segment is one of the major focuses for hotel brands’ expansion
                                                • Figure 21: Segment share, by total rooms revenue, 2016-22 (est)
                                                • Figure 22: Best- and worst-case forecast for number of luxury hotels, China, 2022-27
                                            • Market Factors

                                              • Decreases in both room rate and occupancy leading the decline in room revenue in 2022
                                                • Figure 23: YOY growth rate for adr and occupancy, China, 2017-22 (est)
                                              • Sharp decreases in travel volume lead to a decline in the hotel market
                                                • Figure 24: First half-year total number of travellers, 2019-22
                                              • Industry is suffering from labor shortages and cost increases
                                              • Market Share

                                                • Domestic hotel brands dominate the market and continuously expanding shares
                                                  • Figure 25: Company shares, by total guest room units, 2021-22
                                                  • Figure 26: leading hotel brands, by number of hotel rooms, 2020-21
                                                • Leading hotels are targeting second-tier or lower cities with chain expansion strategy
                                                • Who’s Innovating?

                                                  • Health and fitness themed hotel energized the hotel industry
                                                    • Figure 27: VYTEL Hotel by Jinjiang Groups, 2022
                                                  • Innovation of H World Group Limited: digital innovation centering around consumer interests
                                                    • Hotels embracing the metaverse
                                                      • Figure 28: First metaverse hotel: M Social Decentraland by Millennium Hotels and Resorts, 2022
                                                    • Experiential marketing is trending to target Gen Z
                                                        • Figure 29: Hotel experiential marketing examples, 2022
                                                    • Travel Accommodations

                                                      • Mid-scale and vacation rentals show the highest popularity
                                                        • Figure 30: Penetration of Accommodations by travel type, 2022
                                                      • Family with pets in favour of upscale and above accommodations
                                                        • Figure 31: Travel accommodations during short-haul leisure trips, by demographics, 2022
                                                    • Reservation Channel

                                                      • OTA is still the dominant reservation channel
                                                        • Figure 32: Reservation channels for leisure trips, 2022
                                                      • Hotels can drive more direct channel user penetration in the mid-scale segment
                                                        • Figure 33: Reservation channel for leisure trips, by consumers who have used a specific type of hotel during leisure trips, 2022
                                                    • Accommodation Spending

                                                      • Majority of consumers hold a budget of RMB1,000-3,000 for a premium hotel stay
                                                        • Figure 34: Most expensive stay per night, 2022
                                                        • Figure 35: Accommodation usage by budget levels,2022
                                                      • High earners, families with more than one child, pet owners and the highly educated hold the highest budget for hotel stay
                                                        • Figure 36: Most expensive hotel spend per night: weighted average spending, by demographics, 2022
                                                    • Amenities and Services of Interest – Out of Room

                                                      • Relaxing services and children’s facilities leading consumer interest
                                                        • Figure 37: Interested Amenities and services – out of room, 2022
                                                      • High-budget guests have high willingness to pay for entertainment centers and de-stress courses
                                                        • Figure 38: amenities and services – out of room – that consumers are willing to pay extra for, by hotel budget, 2022
                                                    • Consideration Factors

                                                      • Hotel location is a critical factor
                                                        • Figure 39: Consideration factors when choosing accommodation, august 2022
                                                      • Highlighting convenient location and sightseeing destinations to appeal to seniors
                                                        • Figure 40: Selected consideration factors when choosing accommodation: any selected, by age 2022
                                                      • Premium and luxury hotels may highlight wellbeing services
                                                        • Figure 41: Selected consideration factors when choosing accommodation: any selected, by household income and family structure, 2022
                                                    • Interested Amenities and Services in-room

                                                      • High interest in room catering service and high-quality personal care products
                                                        • Figure 42: Interested amenities and services in-room, August 2022
                                                      • High-budget consumers value customized room set up
                                                        • Figure 43: amenities and services in-room that consumers are willing to pay extra for, by hotel budget, 2022
                                                    • Appendix – Market Size and Forecast

                                                        • Figure 44: Total Number of Hotels, by segments, China, 2017-27
                                                        • Figure 45: Total rooms revenue (RMB bn), by segments, , China, 2017-27
                                                    • Appendix – Methodology and Abbreviations

                                                      • Methodology
                                                        • Fan chart forecast
                                                          • Abbreviations

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