Hotels Group Turns to Stock Property Competition
Players in the hotel stock market seem to wake up overnight. While the three major hotel groups in China continue to offer new ways to ensure the share of the hotel stock, new "dividers" are emerging in the market. On September 1st, Beijing Business Daily reporter learned from the Qianru Hotel under Shell Friends'flag that the hotel brand will aim at the hotel market stock property, through a series of renovations to make it a franchisee, and take this as a chain development of the mid-end Hotel market.
This means that the market is constantly emerging for new arrivals to share their food stock in the hotel market. In the view of the industry, the entry of new brands has further intensified the market competition. After the battle for stock hotels, the future market pattern of mid-end hotels may be variable.
The so-called stock hotel market refers to the single hotels that have been opened and the chain hotel properties whose contracts are about to expire. With the decrease of the dividend of economic hotels, the pressure of expansion of hotel groups is also increasing. In recent years, these hotel groups have turned their attention to the stock market, and the competition in this field seems to have entered a white-hot.
Hotel operators said that after experiencing high-speed growth, due to intensified competition and changes in the supply and demand relationship of the hotel market, the growth rate of revenue of economic hotels began to slow down, and the operation of franchised hotels was under tremendous pressure, so many hotels began to "stand in line".
On July 13 this year, Huazhu Hotels Group announced that it would upgrade Hanting again, and released Hanting 3.0 products, which further reduced the management cost and time cost of franchisees. It is obvious that the existing hotel property will be upgraded. Earlier, First Travel Rujia also launched an upgraded version of "Rujia NEO" for existing stock properties.
In the view of the industry, the appearance of these upgraded brands is mainly aimed at upgrading the old stock property and increasing the competitiveness of the hotel brand. On the one hand, to maintain the stock of hotels in the original market, while attracting more external franchisees.
As the market already has a large number of hotel chains, the main battlefield of hotel groups in the future will gradually shift to the stock market. With the entry of new brands, the competition in the stock hotel market will be further intensified, and the expiring chain hotel property will become the target of attraction of various hotel groups. In the future, which hotel group will offer better conditions for joining and higher return on investment, which will be more attractive to the market.