Core Viewpoint - A trend of high-end hotels in China, particularly five-star hotels, has emerged where they are adopting street vending as a strategy to generate additional revenue amidst declining traditional business segments [2][9][12]. Group 1: Industry Trends - The proportion of business travelers at high-end hotels has dropped from 60% to below 50% as of 2024 [2]. - Average daily rates (ADR) for five-star hotels in first-tier cities have decreased by 3.7% to 4.2% year-on-year, with occupancy rates (OCC) declining by 2% to 4% [2]. - Revenue for the 永和铂爵国际酒店 has decreased by nearly 40% compared to 2019, with a 51% drop in dining revenue [9][12]. Group 2: Business Adaptation - The 永和铂爵国际酒店 began street vending on June 23, 2023, and quickly saw daily revenues peak at over 100,000 yuan [6][7]. - The 梅溪湖金茂豪华精选酒店 initially focused on breakfast sales, which rapidly increased from a few hundred yuan to 4,000 to 5,000 yuan daily within a week [8]. - Both hotels have expanded their offerings to include various meal times and types, adapting to community demand [8][20]. Group 3: Operational Strategies - The hotels are leveraging their prime locations to attract local consumers, with the 永和铂爵国际酒店's street vending positioned at a high-traffic area [6]. - The strategy includes maintaining staff engagement and performance by providing them with operational tasks through street vending [12][22]. - The hotels are also exploring new business models, such as "chef at home" services and affordable meal packages to cater to changing consumer preferences [20][21]. Group 4: Market Response - The response from the community has been positive, with increased foot traffic and inquiries about other hotel services during street vending operations [15][16]. - However, there are concerns from industry peers regarding the impact on the brand image of five-star hotels engaging in street vending [13][18]. - The revenue from street vending, while beneficial, remains a small portion of overall income and is not seen as a core business strategy [13][14]. Group 5: Future Outlook - The sustainability of street vending as a business model will depend on continued demand; if successful, it may become a regular operation [18][25]. - The hotels are also focusing on cost control and flexible staffing to adapt to fluctuating business conditions [22][24]. - As of early August 2023, the revenue from street vending has begun to decline from its peak, indicating potential market saturation or seasonal effects [25].