Core Viewpoint - The hotel industry is experiencing a shift towards "vertical hotel complexes," where multiple hotels operate within the same building, leading to cost efficiency and increased occupancy rates during peak seasons [4][5][11]. Group 1: Industry Trends - The trend of "piling hotels" in a single building is becoming popular in the domestic hotel market, driven by the need for cost-effective operations amid increasing competition [5][10]. - In some cases, buildings can host 10 to 20 hotels, with shared facilities like lobbies, which reflects the industry's transition from an incremental market to a stock market [11][17]. - Despite the high density of hotels in one location, they often do not engage in fierce competition; instead, they achieve high occupancy rates during peak seasons [8][18]. Group 2: Economic Implications - The "vertical hotel complex" model allows hotels to share customer traffic, reducing individual marketing costs and enhancing overall visibility [38][40]. - Smaller hotels are gaining popularity due to lower investment costs and reduced operational pressures, making them attractive in the current market [42][43]. - The scarcity of suitable properties for small hotels has increased their value, as regulations have limited new approvals for small hotel-style apartments since 2018 [44]. Group 3: Consumer Experience - This model offers consumers a variety of choices and potentially better price-performance ratios, although it may dilute brand identity and affect the experience of high-end clientele [46][47]. - The shared nature of these complexes can lead to mixed experiences, with some consumers appreciating the variety while others may find the quality inconsistent [46][47]. Group 4: Challenges and Risks - The concentration of hotels in one building raises safety concerns, such as increased fire hazards and security issues due to high foot traffic [32][31]. - The "coexistence" of hotels can lead to shared risks; if one hotel faces challenges, it may impact the entire complex [45]. - The economic viability of such models can be precarious, as seen in cases where hotels have struggled with occupancy and profitability [55][56].

Core Viewpoint - The trend of "stacked hotels" in China is emerging as a cost-effective solution in a highly competitive hotel market, where multiple hotels operate within the same building, leading to a unique "vertical hotel complex" model that benefits from shared resources and customer flow [1][30]. Group 1: Industry Trends - The phenomenon of multiple hotels coexisting in a single building, often referred to as "stacked hotels," is becoming increasingly common in urban areas like Hangzhou, where a single high-rise can host over ten hotels [2][5]. - This model allows hotels to maintain their unique characteristics while benefiting from shared customer traffic, especially during peak seasons when occupancy rates can reach nearly full capacity [20][30]. - The "vertical hotel complex" approach is seen as a response to the shift from an incremental market to a stock market in the Chinese hotel industry, where suitable locations for new hotels are scarce [1][5]. Group 2: Economic Implications - Hotels within the same building can collectively manage seasonal fluctuations, sharing the burden during off-peak times and enjoying full occupancy during busy periods, thus enhancing overall profitability [20][30]. - The shared space and resources can lead to reduced customer acquisition costs for individual hotels, as the presence of multiple options attracts more visitors to the building [20][30]. - The trend reflects a broader shift in the hospitality industry, where smaller hotels are becoming more appealing due to lower investment costs and reduced operational pressures compared to larger establishments [30][34]. Group 3: Challenges and Considerations - While the stacked hotel model offers economic benefits, it also raises concerns regarding safety and regulatory compliance, as seen in past incidents where overcrowded buildings faced fire hazards [16][17]. - The model can lead to potential conflicts with residential communities, as seen in cases where residential buildings have been converted into hotels, causing disturbances and safety issues for residents [7][10]. - The long-term sustainability of this model may be challenged by market saturation and the need for continuous differentiation among hotels to avoid a decline in service quality and brand identity [30][37].