Xin Jing Bao·2025-11-06 08:08Core Insights - The hotel industry in China is experiencing intense competition, often referred to as "involution," which is seen as a sign of ongoing supply-side reforms rather than a lack of progress [1][7] - The founder of Huazhu Group, Ji Qi, emphasizes that competition should drive upward growth and innovation, transforming anxiety into a force for industry and personal development [1][3] Industry Overview - The hotel market in China is characterized by oversupply and a struggle for pricing power, leading to anxiety among investors and practitioners [1] - Despite the challenges, Ji Qi remains optimistic about the Chinese hotel industry, viewing competition as a signal for growth rather than a threat [5][7] Market Dynamics - The hotel occupancy rate in China is projected to recover to 67.8% in 2024, but structural issues persist, with only 25% of approximately 20 million hotel rooms being part of large-scale operations [8][9] - The market is transitioning from low-cost competition to high-quality, refined operations, pushing companies to improve products and services [8][9] Strategic Framework - Ji Qi introduces a framework of "three 'three markets'" that includes geographic, consumer tier, and age structure, identifying significant potential in county-level markets [9][10] - The focus is shifting from price competition to value and experience, driven by a growing middle-income group exceeding 400 million people [9][10] Investment Standards - Two "three good" investment standards are proposed: for investment, focus on "good location, good rent, good product"; for products, emphasize "good brand, good property, good quality" [10][12] - This methodology aims to create sustainable growth mechanisms rather than mere competition [10][12] Brand and Experience - Huazhu's growth reflects a shift from merely providing affordable accommodation to enhancing the overall experience and aesthetic of hotel stays [14][15] - The company aims to create a brand that resonates with consumers, emphasizing the importance of experience over price [14][15] Future Vision - Ji Qi articulates a vision for Huazhu's next 20 years, focusing on deepening its presence in China, leading with brand strategy, and pursuing quality-driven growth [20][21] - The mission has evolved from "beautiful life" to "beautiful journey," positioning hotels as emotional waypoints in travelers' lives [21][22]