Core Insights - The hotel prices in major Chinese cities have significantly decreased, with many budget and mid-range brands experiencing price drops of over 10% and some exceeding 20% [3][5][10] - The price adjustments reflect a broader trend of declining average daily rates (ADR) and revenue per available room (RevPAR) across the hotel industry, particularly affecting mid-range and budget hotels [22][25][30] Price Trends - From August 1 to September 1, hotel prices in Beijing, Shanghai, Guangzhou, and Shenzhen showed a general downward trend, with 9 out of 10 observed hotel brands reporting average price declines [3][5] - Economic and mid-range brands were the most affected, with brands like Home Inn and Hanting experiencing price drops of 27.2% and 24.1% respectively [5][10] - High-end brands showed more stability, with Hilton being the only brand to see a price increase during this period [5][10] OTA Price Variations - Price strategies among different Online Travel Agencies (OTAs) displayed significant divergence, with Ctrip offering the lowest prices in some regions while Tongcheng had the highest [7][13] - In Beijing, Ctrip's average price dropped 13% to 498.4 yuan, while in Shanghai, Qunar saw a significant decline of 11.8% [7][10] Regional Observations - In Beijing, the overall hotel price decline reached 13.5%, with specific brands like Home Inn and Orange Crystal showing notable drops [10][12] - Shanghai's hotel prices fell by 14.6%, with Vienna experiencing a significant drop of 28.1% [10][12] - Guangzhou also saw a widening price gap among OTAs, particularly in budget hotels, indicating a competitive pricing environment [13][15] Company Performance - At Atour Hotel, the average daily rate (ADR) for the first quarter of 2025 was reported at 418 yuan, lower than the 429.5 yuan recorded in 2019 [20][22] - The overall RevPAR for Atour in 2024 showed a decline of 6.8% compared to the previous year, reflecting ongoing challenges in the market [22][25] - Huazhu Group reported a 2% decrease in ADR to 290 yuan in the second quarter of 2024, indicating a similar trend across the industry [23][25] Market Dynamics - The hotel market is facing supply-demand imbalances, with new hotel openings outpacing the recovery of travel demand post-pandemic [29][30] - The average occupancy rate for five-star hotels dropped to 58.25% in the second quarter of 2024, highlighting the pressure on hotel revenues [29][30]

Core Viewpoint - The hotel market in Luoyang is experiencing a significant downturn, with declining average daily rates (ADR) and occupancy rates despite a high volume of tourists in the city [1][6][19]. Group 1: Market Performance - Luoyang's luxury hotel ADR has dropped by over 150 yuan year-on-year, with current average prices at 564.37 yuan compared to 717.77 yuan last year [4][6]. - The overall hotel market in Luoyang has seen a 0.55% decline in room prices compared to the same period last year, while nearby Kaifeng has experienced a 3.03% increase [6][12]. - The occupancy rate in Luoyang has remained around 50% since late June, with only two instances in the last three months exceeding 60% occupancy [8][11]. Group 2: Supply and Demand Dynamics - There has been a rapid increase in hotel supply in Luoyang, with 399 new hotels expected to open by 2025, leading to a significant oversupply situation [13][16]. - The influx of new hotels has created a supply-demand imbalance, particularly in tourist-heavy areas like the old city and Luolong District [13][15]. - The local hotel market is facing pressure from a decrease in corporate travel and changes in government regulations that limit high-end dining and entertainment [18]. Group 3: Consumer Behavior and Market Adaptation - Despite the challenges, Luoyang's tourism data remains strong, with significant visitor numbers during holidays, indicating a potential for recovery [11][12]. - Hotels are beginning to adapt by shifting from traditional room sales to experiential offerings, integrating local cultural elements into their services [19][21]. - Innovative strategies are being implemented, such as themed rooms and cultural experiences, to attract tourists and enhance the overall guest experience [19][21].