HWORLD(US:HTHT) Guan Cha Zhe Wang·2025-11-04 07:04Core Viewpoint - Haiyou, a budget hotel brand under Huazhu Group, aims to achieve a "thousand-store scale" by enhancing its product offerings and operational efficiency, despite previous setbacks in expansion [1][6]. Group 1: Business Strategy and Expansion - Haiyou previously set a goal to expand from 464 stores in 2020 to 1,500 by the end of 2023, but has only added about 230 stores, reaching over 700 by August this year [1][6]. - The CEO of Huazhu Group acknowledged that Haiyou initially limited its target audience to younger demographics, neglecting a broader market that includes middle-aged and older customers [1]. - Haiyou has introduced a new product, the fully self-service hotel, moving away from previous iterations to better meet market demands [1][5]. Group 2: Product Offering and Customer Experience - The fully self-service model aims to drastically reduce labor costs while reallocating savings to enhance room quality, positioning itself against higher-end brands like All Seasons [2][5]. - Haiyou's new offerings include larger room sizes, ergonomic mattresses, and improved amenities, all while maintaining cost efficiency [5][10]. - The self-service model allows guests to check in quickly and access various facilities independently, promoting a balance between efficiency and customer service [8][10]. Group 3: Market Trends and Consumer Behavior - Consumer preferences are shifting towards value-driven accommodations, with a notable trend of travelers opting for budget-friendly options, even unconventional ones like camping [7][8]. - Traditional budget hotels face challenges due to outdated offerings and inflated pricing, creating a gap in the market that Haiyou aims to fill with its innovative model [8][10]. - Data indicates that the fully self-service hotel model is gaining traction, with several locations achieving high occupancy rates and revenue per available room (RevPAR) exceeding 230 yuan [10][11]. Group 4: Investment Potential - The fully self-service hotel model is characterized by low investment costs, with a new single room costing approximately 57,100 yuan, making it an attractive option for investors [10]. - The operational efficiency of the self-service model allows for a significantly reduced staff-to-room ratio, enhancing profitability [10][11]. - Haiyou's approach is positioned as a "king of investment efficiency" in the budget hotel sector, promising high returns with minimal investment [10][11].