Core Viewpoint - The lawsuit between Mengbaihe and Huazhu highlights the competitive dynamics between the mattress and hotel industries, with both sides seeking to capitalize on each other's markets [1][3][20]. Group 1: Legal Dispute - Mengbaihe Home Technology Co., Ltd. has filed a lawsuit against Huazhu Hotel Management Co., Ltd. and its subsidiaries for trademark infringement [2]. - The case is set to be heard in the Shanghai Pudong New Area People's Court on February 13, 2025 [2]. - The ongoing competition between the two companies has been characterized as a "water under the bridge" rivalry, with both aiming to capture market share from each other [2][3]. Group 2: Industry Challenges - The hotel industry is facing declining performance, with the average occupancy rate in 2024 at 58.8%, down 2.5 percentage points year-on-year, and average room prices decreasing by 5.8% [4]. - Increased competition and a saturated market have forced hotels to lower prices and seek cost-cutting measures, leading them to consider producing their own bedding products [4][20]. Group 3: Market Strategies - Huazhu's decision to enter the mattress market is driven by the need to enhance profitability amid declining hotel revenues [3][4]. - Other hotel brands, like Atour, have successfully launched their own bedding lines, significantly boosting their revenue [8][10]. - Mengbaihe's strategy involves collaborating with hotels to promote its products, effectively turning hotel rooms into immersive showrooms for its bedding items [16][20]. Group 4: Future Outlook - Mengbaihe aims to open 2,000 "zero-pressure" hotels, although its current progress is limited, with only a few locations operational [17][19]. - The competition between mattress manufacturers and hotels is expected to intensify, as both sectors explore new revenue streams and customer engagement strategies [13][20].

Core Viewpoint - Atour, a hotel brand that has shifted towards selling pillows, is facing significant service and hygiene complaints from customers, indicating a decline in its reputation and service quality [2][4][6]. Group 1: Service Issues - Customers reported serious service failures during their stays, including being trapped in malfunctioning elevators without assistance and experiencing poor room conditions [2][6]. - Complaints about hygiene were prevalent, with guests finding dirty mirrors, water stains, and used toiletries in their rooms [6][8]. Group 2: Business Model Shift - Atour's retail business, primarily focused on selling pillows, has seen rapid growth, with a projected increase of 127.7% year-on-year in 2024 [4][13]. - The company is transitioning to a "light asset operation" strategy, increasing franchise hotels while reducing self-operated properties, which has led to a significant expansion in its hotel network [9][12]. Group 3: Financial Performance - Despite the decline in customer experience, Atour's revenue from franchise hotels increased by 53.3% to 4.15 billion yuan, while revenue from self-operated hotels decreased by 16.4% to 700 million yuan [12]. - The average daily room rate for Atour hotels fell by 5.8% to 437 yuan in 2024, reflecting challenges in maintaining pricing power in a competitive market [12][13]. Group 4: Retail Growth and Marketing - Atour's retail segment, particularly its pillow sales, has become a significant revenue driver, contributing 30% to total income in 2024, with expectations of at least 35% growth in 2025 [13][15]. - The company has heavily invested in marketing, with expenses reaching 970 million yuan, which has impacted profit margins [15].