2025-05-06 02:27Summary of Hotel and Tourism Industry Conference Call Industry Overview - The hotel industry during the 2024 May Day holiday exceeded expectations, driven by long holiday opportunities leading to increased inter-provincial and long-distance travel, particularly in lower-tier cities. Coastal cities showed better performance compared to last year, and the 144-hour visa-free transit policy boosted foreign tourist numbers. Hotel prices, including those of Huazhu and Jinjiang, saw approximately a 10% increase [1][4][25]. Key Insights - Performance by Hotel Tier: Different tiers of hotels showed varied performance during the holiday. High-end hotels experienced significant growth in occupancy rates, while mid-range hotels saw increases in both price and traffic. Economy hotels had relatively smaller increases [1][5]. - RevPAR Growth: During the 2024 May Day period, Huazhu's RevPAR was 110.3 RMB, and Jinjiang's was 118.4 RMB, both showing over 10 percentage points growth compared to the previous year. This growth suggests a potential similar trend for Q2 and raises expectations for summer data [1][6][7]. - Regional Performance: The Southwest and South China regions performed particularly well, while the Northwest region, except for Xinjiang, showed weaker results [2][4]. Additional Important Points - Government Initiatives: The government is considering issuing accommodation vouchers through OTA platforms to stimulate tourism and related services, expected to launch before the summer [3][25]. - Supply Dynamics: Huazhu plans to open 2,400 new stores in 2025, focusing on lower-tier markets, while Jinjiang's pace is slower with fewer than 300 new openings. The overall slowdown in supply growth is seen as positive for the chain hotel market [12][13]. - Business Travel Trends: Business travel demand remained stable in April, with Huazhu's demand holding steady year-on-year, while Jinjiang experienced a decline due to first-quarter reforms [10][11]. - Market Outlook: The overall hotel industry is expected to remain flat or decline by 1-2% in 2025, with Jinjiang projected to decline by about 5% and Yaduo by 2-3% [21]. Conclusion - The hotel industry is experiencing a positive trend driven by increased travel demand and government support. However, the performance varies significantly across different hotel tiers and regions. The supply dynamics and business travel trends will play a crucial role in shaping the industry's outlook for the coming months.