Minmetals Securities·2025-05-29 01:55Investment Rating - The report rates the industry as "Positive" [5] Core Insights - The report analyzes the competitive landscape of China's hotel industry, focusing on four major chain hotel leaders: Jinjiang, Huazhu, Shoulv, and Atour, highlighting the importance of profitability and efficiency [1][2] - Huazhu maintains a leading position in revenue and profitability, while Atour shows the fastest growth rate. Jinjiang remains the largest player, but Shoulv is lagging behind [2] - The mid-to-high-end hotel market is expected to become the main battleground, with brands focusing on asset-light expansion and building digital platforms to enhance brand recognition and customer loyalty [3] Summary by Sections Jinjiang Hotel - As of Q3 2024, Jinjiang Hotel operates 13,186 hotels with 1,257,996 rooms, maintaining the largest scale in the industry. Its market share was 17.62% at the end of 2023, the highest among peers [2][14] - Jinjiang's revenue for Q1-3 2024 was 10.79 billion yuan, with a net profit of 1.11 billion yuan, showing a recovery in revenue but slower margin recovery [18][19] - The company is focusing on a light-asset strategy to improve operational efficiency, with a fixed asset turnover rate of 2.55 times as of September 2024 [20] Huazhu Group - Huazhu operates 10,845 hotels with 1,062,546 rooms as of Q3 2024, with a revenue of 17.868 billion yuan and a net profit of 1.273 billion yuan for Q1-3 2024, reflecting significant growth [49][53] - The company has improved its internal management and cost control, leading to a gross profit margin of 37.91% [53][54] - Huazhu is shifting towards a franchise model, with franchise hotel revenue growing significantly, indicating a strategic move to reduce heavy asset burdens [69] Shoulv Hotel - Shoulv's hotel scale has been growing at a compound annual growth rate of only 9%, the lowest among the four companies, and its revenue recovery has been unsatisfactory [2] - The company is focusing on rapid expansion of light management hotels to improve profitability [3] Atour Group - Atour has maintained a compound annual growth rate of 30% in hotel scale since 2019, with significant revenue and net profit growth expected post-2023 [2] - The company emphasizes brand building in the mid-to-high-end market and leverages its unique retail business to enhance its boutique hotel image [3]