Core Insights - The economic hotel sector, once thought to be declining, has seen a resurgence since 2025, with significant growth in the number of establishments and market interest [3][5][28] - The top ten hotel brands in the 2024 "Global Hotel Group 205" list include four Chinese companies, indicating a strong domestic market presence [3][4] - The shift in consumer behavior post-pandemic has led to a renewed focus on the value proposition of economic hotels, emphasizing cleanliness, convenience, and affordability over luxury [5][20] Industry Trends - Economic hotels are experiencing a stable occupancy rate and increasing chain rates, contrasting with the rising prices of mid-to-high-end hotels, indicating a return of "bottom demand" in the market [5][6] - Franchisees are becoming more conservative, prioritizing return on investment over brand prestige, which is driving interest in economic hotel models [6][8] Company Performance - Hanting Hotel, operated by Huazhu Group, has become the largest economic hotel brand globally, with over 4,139 locations, showcasing effective management and strategic adjustments [4][10][12] - The brand has adopted a "go total package" strategy, reducing costs and improving quality by managing construction internally, and has tailored pricing strategies based on regional market conditions [11][12] Competitive Landscape - The rapid expansion of the brand Shangkexiu, backed by Xiaomi, focuses on high cost-performance and localized services, primarily targeting lower-tier cities, which has positioned it as a leader in the down-market segment [13][14] - The average room price for Shangkexiu is around 170 yuan, with construction costs significantly lower than mid-to-high-end brands, making it an attractive investment for franchisees [14][15] Market Dynamics - The core competitiveness of economic hotels has shifted from merely being "cheap" to emphasizing operational efficiency, including property acquisition, construction, and management [19][20] - The market is becoming more akin to a manufacturing industry, where efficiency and return on investment are paramount [21][20] Future Outlook - While Hanting and Shangkexiu lead the market, the entry of new brands faces challenges due to high barriers to entry, including the need for substantial funding, organizational structure, and operational models [22][24] - The recovery of the economic hotel sector signifies not a return to the past but a transformation in how value is perceived by consumers and franchisees alike [26][28]

Group 1 - The core viewpoint of the article highlights the competitive and fragmented nature of the hotel market in Jiangsu, driven by local pride and economic strength among its cities [4][18][36] - The hotel market in Jiangsu shows significant growth in hotel bookings due to the "Super League" football event, with increases of 150% in Huai'an, 67% in Suqian, and 54% in Xuzhou [1][3] - Jiangsu's hotel market is characterized by a "scattered" structure, with only 10% of the total hotel count located in the provincial capital, Nanjing, which lags behind cities like Wuxi and Suzhou [3][11] Group 2 - The report indicates that Jiangsu has a total of 41,704 hotels, with Wuxi leading in quantity at 6,101 hotels, while Lianyungang has the least at 1,011 hotels [8][9][11] - The hotel market in Jiangsu is predominantly low-end, with 77.77% of hotels classified as such, while high-end hotels account for only 2.29% [14][16] - The average room price in southern Jiangsu is significantly higher at 480 yuan per night compared to 290 yuan in northern Jiangsu, despite northern Jiangsu experiencing a higher growth rate in hotel numbers [17][18] Group 3 - The competition for high-end hotels in Jiangsu is intense, particularly between Suzhou and Nanjing, with Suzhou having a higher number of five-star hotels [20][21] - Suzhou has seen a significant increase in high-end hotel developments, with 115 high-end hotels confirmed, driven by the demand for international conferences [23][25] - The article notes that the hotel market in Jiangsu is influenced by prominent figures such as Ji Qi, founder of Huazhu Group, who has significantly impacted the domestic hotel industry [31][35]