Core Insights - The incident involving the reuse of disposable slippers at the Changzhou Marriott Hotel highlights a deviation from the luxury service standards expected by customers in high-end hotels [1] - The hotel claims that the slippers are not single-use and are cleaned and disinfected after each guest, but this practice raises concerns about customer perception and industry standards [1] - The broader context includes a decline in performance for Marriott in the Greater China region, which is struggling with increased market supply and pressure on profitability [2][9] Financial Performance - In Q2 2025, Marriott International reported total revenue of approximately $6.744 billion, a year-on-year increase of 4.73%, while net profit was about $763 million, a decrease of 1.17% [2] - The RevPAR (Revenue per Available Room) for the Greater China region saw a decline of 0.5%, contrasting with growth in other regions such as the Middle East and Africa, which experienced a 14% increase [3][5] Regional Performance - The Greater China region's RevPAR was $80.06, significantly lower than other regions, with Europe at $266.53 and the Middle East and Africa at $135.25 [5] - The average daily rate (ADR) in Greater China was $110.29, a decrease of 0.9%, while global ADR was $188.25, an increase of 1.9% [8] - Occupancy rates in Greater China were at 66.9%, slightly up by 0.3 percentage points, but still lower than other regions [8] Market Dynamics - The hotel industry in China is facing challenges due to rapid market supply growth, with the number of hotels increasing significantly since 2020 [11] - The overall RevPAR for the Chinese hotel industry dropped by 5% in the first half of 2025, with high-end hotels experiencing declines of 6% to 8% [11] - The shift in focus from luxury service to profitability is evident, as hotel brands like Marriott are pressured to adapt to changing market conditions and owner expectations [14][15]