Core Viewpoint - The hotel industry is currently facing significant challenges, primarily related to high rental costs and platform fees, which are squeezing profit margins and leading to operational difficulties for many establishments [7][34][40]. Group 1: Industry Challenges - Many hotels are publicly complaining about high rents, indicating a broader issue within the industry where labor and energy costs have already been maximized, leaving rent and platform fees as the main expenses [7][34]. - Specific examples illustrate the struggle: a hotel in Guangdong with 83 rooms has a monthly rent of 40,000 yuan, requiring a 63% occupancy rate to break even, while another hotel in Changsha with 28 rooms has a rent of 30,000 yuan and has been unable to find a buyer for six months [9][13]. - The phenomenon of "abandoning properties" is emerging, with hotels in cities like Hangzhou and Xiamen selling equipment or closing down due to unsustainable costs [14]. Group 2: Financial Metrics - The conventional rental cost should not exceed 20% of the hotel room price, with an ideal range of 15%. In lower-tier cities, rents range from 7 to 15 yuan per square meter, while in first-tier cities, it can exceed 100 yuan [22][23]. - For instance, the 延年洋湖公园酒店 charges 46 yuan per square meter, which translates to a rental cost that is only 15% of the room price, suggesting that high rents may not be the sole issue [24][25]. - The average revenue per available room (RevPAR) is declining, exacerbated by high platform fees that can exceed rental costs, with some hotels paying up to 35% of their revenue to platforms [34][36]. Group 3: Operational Insights - The hotel industry is not only burdened by rent but also by increasing platform fees, which are now a significant part of operational costs, often surpassing traditional expenses like rent and utilities [33][34]. - In the first half of 2025, over 600 mid-to-high-end hotels closed, while platform companies reported profits, highlighting a disparity in financial health between hotels and platforms [36]. - The overall profit margin for the hotel industry in Beijing has drastically decreased, with a reported profit margin of only 0.3% in the first half of 2025 [37]. Group 4: Strategic Recommendations - To improve their situation, hotels need to focus on enhancing product differentiation, customer experience, and operational efficiency rather than solely blaming high rents [45]. - The current strategy of negotiating lower rents without addressing underlying operational issues is not sustainable, as it does not resolve the core problems affecting profitability [44].