Core Insights - Five-star hotels in China are embracing street vending as a viable business strategy amid declining traditional revenue streams [2][6][11] - The shift reflects a broader trend of high-end hotels adapting to changing consumer preferences and economic conditions [14][19] Group 1: Market Trends - Since July, a wave of street vending has swept through five-star hotels across China, including notable establishments in Shanghai, Zhengzhou, and Changsha [2] - The proportion of business travelers at high-star hotels has dropped from 60% to below 50%, with average daily rates (ADR) in first-tier cities declining by 3.7% to 4.2% year-on-year [2][6] - Revenue for five-star hotels has significantly decreased, with some reporting a nearly 40% drop compared to 2019 [6][10] Group 2: Business Adaptation - Hotels like the Yonghe Bojue International Hotel in Zhengzhou have successfully generated daily revenues of around 30,000 yuan from street vending, which helps cover staff wages [2][3] - The Changsha Meixi Lake Jinmao Hotel initially focused on breakfast but quickly expanded to include lunch and dinner offerings due to high demand from local residents [5][8] - The shift to street vending is seen as a necessary survival strategy, allowing hotels to maintain staff and engage with the community [8][12] Group 3: Operational Changes - Hotels are implementing flexible staffing strategies, encouraging employees to take on multiple roles to adapt to fluctuating demand [17][18] - The Yonghe Bojue International Hotel has also reintroduced a "chef at home" service, reflecting a shift in service delivery to meet changing consumer needs [15] - Cost control measures are being adopted, including reducing menu prices and offering budget-friendly meal options to attract more customers [16][18] Group 4: Future Outlook - The initial excitement around street vending is beginning to wane, with revenues at the Yonghe Bojue Hotel dropping from a peak of 100,000 yuan to around 50,000 to 60,000 yuan [19] - Hotel operators express a desire to maintain core business operations while exploring new revenue streams, emphasizing that traditional services remain essential [13][18]