Core Viewpoint - Jinjiang Hotels has emerged as the world's largest hotel company with 13,000 locations and 1.29 million rooms, and is now pursuing an IPO in Hong Kong to enhance its overseas expansion efforts [1][3]. Company Overview - Jinjiang Hotels was founded in 1935 and has evolved from a restaurant to a major hotel group, having been listed on the A-share market since 1996 [3]. - As of December 31, 2024, Jinjiang Hotels operates 13,400 hotels and has a market share of 13.0% in the Chinese hotel market, ranking first for nine consecutive years since 2016 [3][5]. Business Model - The company primarily focuses on limited-service hotels, which offer high cost-performance with basic services [4][5]. - In 2024, Jinjiang Hotels achieved a revenue of 14.063 billion yuan, with 13.583 billion yuan coming from limited-service hotel operations, accounting for 96.58% of total revenue [5]. Industry Trends - The hotel industry is experiencing a shift towards increased chain hotel penetration, with only 32.5% of economy hotels in China being part of chains, compared to over 60% in developed countries [7]. - The rise of "county tourism" is revitalizing the hotel market in lower-tier cities, where chain hotel penetration is currently low [7][8]. Consumer Behavior - A survey indicated that 57% of consumers prefer chain hotel brands for accommodation in smaller cities due to trust in brand quality [9]. - In lower-tier cities, the order volume for chain economy hotels has increased by 35% year-on-year, reflecting growing consumer confidence in these brands [9]. Cost Management - Chain hotels are reducing operational costs through centralized procurement and shared resources, with Jinjiang's centralized purchasing platform lowering costs by 15%-20% compared to independent hotels [10]. - Standardized training systems in chain hotels can also reduce labor costs by approximately 10% [10]. Competitive Landscape - The rise of platforms like Airbnb is creating competition for economy hotels, with shared accommodations capturing 20% of the global hotel booking market in 2022 [14]. - During off-peak seasons, the average price of Airbnb listings is 20%-30% lower than that of economy hotels, putting pressure on pricing strategies [14][15]. Strategic Initiatives - Jinjiang Hotels is innovating by launching the 5.0 version of Jinjiang Inn, focusing on enhanced guest experiences, particularly in sleep quality [16][17]. - The company is also expanding internationally, with plans to sign over 100 hotel projects in Southeast Asia over the next five years, targeting markets with low chain hotel penetration [17][18].