Core Viewpoint - The trend of high-end hotels engaging in street vending reflects a strategic shift to adapt to declining traditional revenue streams and attract a broader consumer base [2][9][20]. Group 1: Market Trends and Challenges - Since July, a wave of street vending has emerged among five-star hotels across China, including notable establishments in Shanghai, Zhengzhou, and Changsha [2]. - The 2024 China Hotel Industry Development Report indicates a significant decline in business traveler occupancy rates for high-star hotels, dropping from 60% to below 50% [2]. - Average daily room rates (ADR) in first-tier cities have decreased by 3.7% to 4.2%, with occupancy rates (OCC) down by 2% to 4% [2]. - Revenue for high-end hotels has seen a drastic decline, with some reporting a nearly 40% drop compared to 2019 [9][10]. Group 2: Innovative Business Strategies - The initiative to sell street food has proven financially beneficial, with some hotels generating daily revenues of approximately 30,000 yuan, which can cover staff wages [2][4]. - The success of street vending is attributed to strategic locations with high foot traffic and appealing food offerings that resonate with current consumer preferences [5][6]. - Hotels are expanding their offerings beyond breakfast to include lunch and dinner options, significantly increasing revenue streams [7][21]. Group 3: Operational Adjustments - Hotels are adopting flexible staffing strategies, encouraging employees to take on multiple roles to maintain service quality despite reduced staff numbers [24][25]. - The focus remains on core services such as room bookings and event hosting, with street vending seen as a temporary measure rather than a primary revenue source [18][25]. - Cost control measures are being implemented, including menu adjustments and pricing strategies to attract more customers [22][23]. Group 4: Consumer Engagement and Brand Building - Street vending serves as a platform for hotels to engage with local communities, fostering brand recognition and trust among potential customers [16][18]. - The introduction of promotional activities, such as live streaming and community events, aims to enhance customer interaction and drive future bookings [16][17]. - Hotels are leveraging their street food operations to promote their core services, creating opportunities for upselling and customer retention [16][18].