Core Insights - The Chinese hotel industry has entered a survival phase driven by high cost-performance, making it essential for hotel groups to focus on creating high-value products [1][4] - Dongcheng Group's City Convenience Hotel has set a new record for the construction cost of high-end economy hotels, with a single room cost as low as 67,000 yuan [1][5] Group 1: Industry Trends - The report from Mai Dian Research Institute indicates that high cost-performance is no longer optional but critical for survival in the hotel industry [1] - The shift from "adding more" to "removing less" reflects a focus on cost efficiency while maintaining quality, redefining industry benchmarks for cost-performance [3][7] Group 2: Company Strategy - Dongcheng Group's City Convenience Hotel has evolved its product through multiple upgrades since its establishment in 2006, with the latest 4.0 version focusing on user needs and reducing unnecessary costs [5][15] - The modular design and standardized production methods have significantly lowered construction costs, achieving a new low of 67,000 yuan per room [5][9] Group 3: Operational Efficiency - The "Lego-style" construction method allows for modular design and assembly, reducing costs by approximately 15% and shortening construction time, which can enhance hotel profitability by about 30% [9][11] - The use of AI and smart systems in operations helps reduce labor costs and improve efficiency, with examples showing significant time savings in staff scheduling and cleaning [14][15] Group 4: Customer Experience - City Convenience Hotel emphasizes a "six-dimensional sleep culture" to enhance customer experience, focusing on essential needs such as sleep quality and bathroom facilities [11][12] - The hotel has upgraded its soundproofing and sleep experience features, addressing core consumer pain points effectively [12][14] Group 5: Renovation Success - The transformation of older hotels, such as the Chongqing Bishan store, demonstrates the effectiveness of targeted renovations, achieving a significant reduction in renovation costs while enhancing overall quality [15][16] - The strategic focus on high cost-performance in both new constructions and renovations positions Dongcheng Group as a leader in the competitive hotel market [16]