Date
18 November 2017

China hotel operators eye more mid-end properties, paper says

Several hotel operators in China aim to focus more on the mid-end market amid slowing growth in the three-star hotels business, Beijing News reported Wednesday. With three-star hotels currently making up nearly half of China’s 11,367 hotels with star ratings, Hanting Inns & Hotels, 7 Days Group Holdings Ltd and Jinjiang Inn Co. Ltd are eager to tap into the mid-end segment, it said. The firms are said to be seeking to launch over 100 mid-end hotels each in the coming two to three years. In 2012, Chinese hotels with star ratings posted a combined net profit of 5.05 billion yuan (US$833.87 million), but the three-star hotel segment was 703 million yuan in the red. Hotel guests are willing to pay a little more for better mid-end hotels, although three-star hotels usually offer slightly bigger rooms, the report said.

– Contact HKEJ at digest@ejinsight.com

EL/AC

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