Core Insights - The Chinese hotel industry is transitioning from a "growth era" to a "refinement era," where efficiency and stability are becoming the new benchmarks for investment success [1] - Shenzhen Apolo Hotel Management Co., Ltd. and Ctrip's Lisheng Group have announced a strategic partnership to launch the mid-range hotel brand REZEN ANYI HOTEL, focusing on the value reconfiguration of existing assets [1][3] - The REZEN ANYI brand aims to address the challenges of upgrading existing hotels by combining "international standard quality" with "local efficient operations," creating a robust investment model for investors seeking stable returns [1][4] Industry Challenges - The mid-range hotel market in China is facing structural challenges, with over 60% of the 350,000 existing hotels having been in operation for more than five years, leading to issues such as outdated designs and declining profitability [3] - Investors often face a dilemma between choosing internationally recognized hotel brands, which come with high costs and long payback periods, and local brands, which may lack maturity and brand influence, resulting in unstable occupancy and profitability [3] REZEN ANYI Hotel's Value Proposition - REZEN ANYI Hotel is designed to tackle the structural challenges in the market by integrating Apolo's operational expertise with Lisheng Group's digital capabilities [4] - The brand's mission is to unlock a new investment model that combines "international brand quality," "local team flexibility," and "stable financial returns," creating a "winning" model for investors [4] Four Core Foundations of REZEN ANYI - **Team Foundation**: The core operational team consists of industry veterans with an average of over 20 years of experience, ensuring practical support throughout the project lifecycle [7] - **Cost and Efficiency Foundation**: The brand has optimized its investment return model, reducing room costs by approximately 30% compared to traditional mid-range brands and aiming for a payback period of 3 to 3.5 years [8] - **Digital Foundation**: Leveraging Lisheng Group's digital platform, the hotel utilizes data-driven decision-making to enhance operational efficiency and maximize revenue [10][11] - **Membership and Traffic Foundation**: With a membership base of 30 million, REZEN ANYI can ensure strong initial customer flow and enhance brand loyalty through targeted marketing strategies [12] Strategic Significance - The launch of REZEN ANYI Hotel represents a significant upgrade in mid-range hotel investment philosophy, providing a lower-risk, more stable return option for investors in an uncertain market [13] - The brand aims to lead the industry from scale competition to value competition, promoting a long-term, stable investment approach [13]

Core Viewpoint - The high-end hotel industry is facing significant challenges, with a decline in average room prices and occupancy rates, indicating a mismatch between supply and demand in the market [1][3]. Industry Overview - The average room price for five-star hotels in China decreased by 5% to 599 RMB per night in the first three quarters of 2024, while the average occupancy rate fell by 4% year-on-year [1]. - The decline is attributed to the aftermath of the real estate bubble, loss of business travelers, and pressure from mid-range hotels [1]. Market Trends - The demand for high-end hotels is shifting from traditional luxury offerings to experiences that resonate emotionally with guests, emphasizing comfort and unobtrusive service [3]. - High-end hotels are now expected to provide identity recognition and self-satisfaction rather than just accommodation [3]. Company Strategy - Huazhu Group is strategically positioning itself in the high-end market by developing four key brands: Xiyue, Huajian Tang, Shibaige, and Meilun Meihuan, targeting different high-end consumer segments [3][4]. - The brands focus on cultural confidence and unique experiences, with Xiyue and Huajian Tang appealing to domestic travelers and Shibaige and Meilun Meihuan targeting international and high-net-worth business travelers [4][5]. Brand Differentiation - Xiyue offers a subtle luxury experience that reflects Chinese culture, while Huajian Tang emphasizes destination experiences with scenic locations and immersive activities [4][10]. - Shibaige combines German efficiency with local insights to cater to business travelers, enhancing meeting services and operational efficiency [6][8]. - Meilun Meihuan focuses on aesthetic experiences and gourmet offerings, appealing to high-net-worth individuals seeking unique stays [9][10]. Market Opportunities - The high-end hotel market is expected to benefit from a surge in inbound tourism, with a projected 82.9% increase in foreign visitors in 2024 due to relaxed visa policies [10]. - There is significant potential in renovating aging five-star hotels to meet current market demands, with a report indicating that by the end of 2024, the number of hotels in China will reach 348,700, with a total of 17.64 million rooms [10][11]. Competitive Advantage - Huazhu Group is well-positioned to capitalize on the renovation opportunities in the market due to its strong supply chain, operational efficiency, and established brand matrix [11][12]. - The company’s focus on experience-driven offerings and systematic operational logic distinguishes it from competitors who rely solely on traditional luxury marketing [12].