With the sustained and rapid growth of national economy and the acceleration of consumption upgrading, the growth rate of hotel industry in China in 2006 is very amazing. Ten international hotel groups have all entered China and continued to expand, and second-tier brands have also landed one after another. Experts said that in 2007, while maintaining rapid growth, the hotel industry will further subdivide the market, and the differentiated competition will be obviously intensified.

There may be a bubble in budget hotels.

In recent years, budget hotels have shown the development trend of scale, networking and branding. It is understood that since the first budget hotel in China was built in 1996, during the period of 10, the budget hotel has grown into an independent commercial force in the domestic tourism and accommodation industry. Since the beginning of this year, such events as Home Inn's successful listing on Nasdaq, Huaping Fund's investment in seven-day hotel chains, Morgan Stanley's plan to invest US$ 20 million (accounting for about 20% of the shares) in Motel, and the inclusion of Jinjiang Star in Jinjiang International and its listing in Hong Kong will promote the emergence of new listed companies or the entry of new strategic investment or venture capital.

Although the economy hotel market is not yet saturated, brand-led industrial concentration is taking shape, and even there is room and possibility to develop to other parts of Asia in the future, insiders warn that a new round of irrational investment boom may lead to some industrial bubbles and vicious competition in individual cities.

For the development trend of budget hotels in 2007, the insiders believe that the leading enterprises of budget hotels will continue to expand the market scale and speed up the pace of spatial layout to maintain their competitive advantage. In regional markets, such as South China and Central China (Sichuan, Chongqing and Han), new competition hotspots may appear.

In terms of price, experts predict that the price of budget hotels will definitely drop further in 2007. The launch and operation of the "My Inn" project in 99 yuan/Midnight, located in the Yangtze River Delta, will introduce a truly cheap hotel format for the hotel industry in China in 2007.

Insiders pointed out that another innovation direction is the popularization of consumer groups. At present, budget hotels are mainly located in the business market, and the entrances and exits of expressways will also become the location of budget hotels, and sub-brands will enter.

High-end hotels are growing strongly.

The high-end hotel market is also seeking its own more refined market positioning. According to the insiders, the implementation of the 2003 edition of Classification and Evaluation of Star Rating of Tourist Hotels, especially the first batch of platinum five-star hotels officially produced in early 2007, will promote the standardization and specialization of hotel management and service, and stimulate the luxury high-end hotel market to form an investment hotspot characterized by upgrading and design climbing.

Industry analysts believe that the sustained growth of the national economy and the reform of the land supply system have also given real estate investors more imagination. With the impact of macro-control policies on residential real estate development becoming more and more obvious, it is expected that more real estate capital will turn to high-end hotel property development.

According to a survey, before the end of 2007, there were 1057 hotels in China, including 507 five-star hotels. There are 77 high-end luxury hotels to be evaluated in Guangdong alone, of which 35 have been built.

Holiday inn has a good prospect.

With the reduction of automobile tariffs and the improvement of the domestic level of automobiles, the pace of automobiles entering the family will be accelerated. In this context, along the expressway may become the growth point of hotel format innovation.

Therefore, experts predict that quadrangles represented by Beijing's "New Hongdu" Inn, urban boutique hotels represented by Shanghai New World 88, hotels around theme scenic spots represented by Hangzhou Xiuboyuan First World Hotel, and some emerging formats with rich cultural connotations such as ancient town houses, family hotels, folk reception and community hotels will gradually become a climate in some areas.

At the same time, in 2006, resort hotels showed obvious signs of growth, especially the seaside resort hotels represented by Sanya, the lakeside resort hotels centered on Taihu Lake and West Lake, some commercial resort hotels such as Jiuzhaigou, Mount Tai and Emei Mountain, and some leisure hotels in Chengdu, Xiamen and Ningbo. It can be said that these hotels rely on scenic spots and cultivate their own consumer groups with concepts such as hot springs and cultural heritage. 2006 can be said to be a year in which the format of resort hotels turned from the marginal state to the center.

The industry believes that economic development will inevitably bring about an upgrade in consumption. With the concept of tourism and leisure being deeply rooted in people's hearts, tourism consumption is bound to become an inevitable choice for consumption upgrading, and resort hotels are likely to become the target of capital market pursuit in the near future.

Related research report:

-2007 China Hotel Industry Analysis and Investment Consulting Report

-2006-2007 China Economy Hotel Industry Analysis and Investment Consulting Report.

-2006-2007 China property hotel industry analysis and investment consulting report.