With the liberalization of the epidemic situation and the restart of inbound and outbound tourism, the domestic hotel market has also ushered in a new round of outbreak, along with the comprehensive recovery of the tourism market. The hotel occupancy rate of many leading hotel groups in Jinjiang, Shoulv and Deyu has increased significantly. Hotel market good Development will usher in a wave of small upsurge of venture capital investment in the first quarter of 2023. At the same time, many hotel brands also seized the development opportunity and began to upgrade their products one after another, transforming from the scale development idea to the high-quality development strategy, hoping to go higher and farther in the change of the hotel market
01
Hotel development is booming
265 hotels opened and 128 signed contracts in the first quarter
Since the first quarter, the inbound and outbound team travel and "air ticket+hotel" businesses operated by national travel agencies and online tourism enterprises have been restarted simultaneously. The inbound and outbound tour restarted, and the hotel ushered in a new outbreak. In terms of entry, Zhejiang, Guizhou, Hunan and other places also welcomed the first batch of international tourists. In terms of outbound travel, according to data from all parties, as of March 10, the number of outbound travel groups in Spring and Autumn has exceeded 100. On the same travel platform, the number of visa inquiries has increased by 87% in the past month.
Fully liberalizing the epidemic situation has promoted the rejuvenation of the tourism industry. All performance indicators of the global hotel industry have increased to varying degrees. Driven by the strong leisure market, the complete liberalization of policies has brought about continuous growth in various performance indicators of the hotel market, among which the data of the head hotel group is quite eye-catching.
Jinjiang Group（ China The three indicators of the District) all hit new highs in the same period of three years. On January 25, when the occupancy rate and the number of full rooms were high, the comprehensive RevPAR of its hotels nationwide increased by 94.4% year on year, which was close to recovery To the pre epidemic level; The operation level of the long-term tourism market and popular cities exceeded expectations, and the growth of medium and high hotels was obvious. The average rental rate in southwest China was nearly 80%;
The comprehensive RevPAR of Dehoo Group has increased by 130% year on year compared with the Spring Festival in 2022, which is close to the level of the same period in 2019. Many cities of its hotels are full of rooms, more than 70 hotels have revenue of more than one million yuan, and the turnover of a single store in the seven days of the Spring Festival is up to 10 million yuan; Fosun Tourism Club Med China The occupancy rate of resorts in the district continued to rise during the Spring Festival holiday, with more than 90% of resorts, the total turnover doubling over the same period of the 2022 Spring Festival, and about 30% more than the same period of the 2019 Spring Festival; However, according to the monitoring data of the Asian Lodging Big Data Research Institute, the occupancy rate in the Asia Pacific region reached 74.6%, higher than the global average of 61.3%.
Under the satisfactory tourism report card, the hotel venture capital ushered in a spring breeze, and a series of hotels have signed contracts and opened. According to the monitoring brand statistics of the Asian Lodging Big Data Research Institute, 265 new hotels were opened in January and February. Compared with December last year, the number of hotels opened increased significantly, including more middle end hotels. In January, 42 hotels were opened, 175 middle end hotels were opened, and 48 economy hotels were opened. According to the monitoring brand statistics, 128 hotels have signed contracts.
In the tide of hotel expansion and development, Jinjiang Hotel（ China The performance of the two brands under the District) is particularly outstanding, and the upgrading and remodeling of Jinjiang Metropolitan Hotel and Park Plaza Hotel deserve attention. In 2023, Jinjiang Capital plans to sign contracts with about 50 companies and open 20 companies, while Park Plaza plans to open 10 companies this year. In this development, Jinjiang Metropolitan Hotel and Park Plaza Hotel will both be committed to building high-quality hotels with an international perspective.
02
High quality development, why
Is it necessary for contemporary hotel brands?
Three years of the epidemic is the darkest time for hotels. According to relevant data, 80% of the more than 400000 hotels closed in 2020-2022 will be single hotels. Under the haze of the epidemic, compared with the single hotels with lower quality, the chain hotels with higher quality obviously have higher anti risk ability.
According to the relevant data of the Asian Lodging Big Data Research Institute, the hotel chain rate has continued to increase in the past three years. By 2022, the chain rate of hotels has reached 55%, and the chain rate of mid tier hotels has also exceeded 50%, reaching 52%, both maintaining an annual growth of about 8%, while the chain rate of economic hotels is lower than that of mid tier hotels, still maintaining about 30%.
as everyone knows, China The scale of the middle class is constantly expanding, and the population size has exceeded 200 million in 2022. In the next few years, China The number of middle-class consumers will increase from 10% of the total population in 2015 to 35%, about 340 million people, more than the total population of the United States. The proportion of the middle class population shows that the consumption potential of hotel consumers and the market scale have a large room for improvement in the future. Under such a development trend, the development of high quality is not only the needs of consumers, but also the needs of market development. For the accommodation industry, high-quality development has become a must for contemporary hotel brands.
As for the relationship between high quality and hotel brand, Lu Siyun, president of Jinjiang Metropolitan Park Plaza dual brand, said in an interview with the space agent: "Only by improving the quality of the hotel, can the future of the hotel brand develop well". Therefore, the relationship between high quality and hotel brand is more like a pyramid. High quality is the tower base of hotel brand, the cornerstone to adapt to the market development trend, and the touchstone to open the hotel brand. Only with the blessing of high quality can the hotel brand come slowly. And the hotel brand will become synonymous with high quality.
Let's take a typical case - Jinjiang Capital Hotel. Looking back on the development history of Jinjiang Capital, we can more deeply experience the century old hotel forged by quality.
The first hotel in Jinjiang City was Shanghai Xincheng Hotel in 1930. Xincheng Hotel has the gene of Shanghai style culture since its birth, China The combination of traditional culture in the south of the Yangtze River and western European and American art makes the New Town Hotel quite different from other High and middle end hotels. In the nearly 100 years of development since then, Jinjiang Metropolitan Hotel has also been committed to interpreting the oriental culture with western ART DECO style decorative arts, and building a bridge for cultural exchanges between China and the West. stay China There are not many hotels with a history of 100 years. Jinjiang Capital has been able to go through such a long period of time, largely thanks to the deep cultivation of brand culture and the understanding of the spirit of the times.
With the arrival of the post epidemic era, these century old hotels of Jinjiang Capital Hotel are also seeking new development. It is reported that the upgrading of Longgang Central City Hotel in Shenzhen, the capital of Jinjiang, just proves the right direction of quality upgrading in the capital of Jinjiang. After product upgrading and remodeling, the hotel's OCC increased from 64.66% to 98.59%, and Revpar increased from 280 yuan before the renovation to 450 yuan after the renovation, an increase of 170 yuan year on year. By 2022 China The territory has expanded to 32 provinces, 120 cities and nearly 400 hotels.
The rebranding of Park Plaza is another important example of quality development. As a business hotel under the European luxury hotel group Radisson, Park Plaza Hotel is committed to building pure business to the end. Since the launch of the full-service Park Plaza brand by the Radisson Group in the millennium, the scale of Park Plaza worldwide has reached nearly 100 by 2022. During the three years of the epidemic, Park Plaza Hotel has won many awards for its quality development and strong operational strength. For example, 2020 won the annual China Business travel design hotel brand, 2021 China Outstanding venture capital value hotel brand, 2022 influential international brand, 2022 Japan IDPA Design Award, etc.
It can be seen that high-quality development determines that the development of hotels is no longer limited to scale, but more focused on brand, which is a new topic that contemporary hotels must face in the post epidemic era.
03
High quality brand construction,
How to build core advantages?
High quality development must depend on the construction of high quality brand, including how to build the core advantages of brand, which is the direction that many hotel groups have been exploring.
For this problem, Lu Siyun believes that the principle of building an international vision is a necessary condition to promote the high-quality development of hotels. In the process of product upgrading and remodeling, different brands should maintain their original values based on different characteristics and achieve new interpretations. Taking Jinjiang Metropolitan Hotel and Park Plaza Hotel as examples, these two brands give different answers in building high-quality brands.
With a high school hotel national brand with a century old cultural heritage, Jinjiang Capital City is not conservative and has upgraded its brand. Lu Siyun revealed: "Jinjiang Metropolitan Hotel has a very mature cultural connotation. In order to make the brand resonate more with young people, Jinjiang Metropolitan Hotel is committed to exploring the century old brand culture more thoroughly. It provides surprise, comfort and new inspiration experience for high school business travelers from home and abroad."
It is reported that in terms of brand construction, Jinjiang Metropolitan Hotel is committed to exploring the connotation of the brand for a century, with the inclusive and pioneering spirit of Shanghai style culture. In terms of operation, the hotel brand will distribute the projects focusing on assets, and the direct store team will support and help the operation team of the newly opened hotel nearby, so as to build the Jinjiang Metropolitan Hotel into a hotel with the strength to impact the hotel China The national brand is a global cultural and creative hotel.
In this year's plan, Jinjiang Hotel will continue to expand. In the new development strategy, Jinjiang Metropolitan Hotel will be committed to improving quality, not pursuing quantity. The hotel implements the strategy of "one store, one design" to help customers connect and interact with local culture and communities with unique local inspiration during the journey. The hotel will be rooted China In terms of culture, it integrates the Shanghai style of the 1930s to achieve double improvement in quality.
The Park Plaza, a business hotel under the European luxury hotel group Radisson, is another brand building model to reshape products, while Park Plaza focuses on pure business to create differentiated products.
In this brand remodeling, Park Plaza will explore the yuppie culture based on its European origin and integrate it into the hotel's business, making the business style more interesting. The so-called yuppie culture refers to the culture that can represent the real young people in Europe in the past few decades. This group of people is young and not hereditary. They have the ability to live in the city after work and life major Technology works hard in the competitive metropolis. There is no hereditary culture, but there is high salary, ambition, bright future, and pursuit of pleasure... The yuppie culture, in short, is a trend similar to the young school. Therefore, based on the Park Plaza Hotel, the Park Plaza team will deeply understand the characteristics of the yuppie business community, and provide more pure services for the personalized business community and contemporary elites.
Lu Siyun said, "In addition to differences, these two brands also have similarities. Whether it is Jinjiang Capital or Park Plaza, in fact, a large part of the user group is the younger generation, mainly the post-85s and post-90s generation. For this, brand building must inject continuous vitality into the brand."
Of course, the construction of high-quality brands cannot float in the air, and the harvest of venture capital is also a must to consider when building a moat of core advantages. Both Jinjiang Capital and Park Plaza focus on a single venture capital model. Jinjiang Capital has changed the original multiple single room cost versions into 150000 versions, and Park Plaza has changed the original two versions into 210000 single room cost versions. Jinjiang Capital and Park Plaza focus on a single venture capital model to facilitate the company to concentrate resources, invest more energy and resources to help the operation of a single product, give play to the company's technical advantages, create high-quality products, and improve product competitive advantage.
In this regard, Lu Siyun also said: "It is a taboo to make products that the whole body is full of knives, but none of them is sharp, so we will focus on differentiated development in hotel venture capital." This time, both brands choose a single venture capital model to focus on the product itself and strive to create the core advantages of the product. This is consistent with the pure business of the Park Plaza or the century old cultural heritage of the Jinjiang Capital.
04
Q&A dialogue with Lu Siyun:
If quality and quantity conflict
I do not hesitate to choose "quality"
Space exploration : Jinjiang Metropolitan Hotel and Park Plaza Hotel brands, one of which is China One of the traditional culture genes is European gene. Is there any contradiction in the development process, and how to solve the possible conflict between the two brands?
Lu Siyun From the perspective of brand, Jinjiang Metropolitan Hotel represents traditional culture and Shanghai style culture, and goes global with its unique cultural genes. The Park Plaza Hotel is part of the Radisson, with European genes and a specific culture. Their underlying logic is the same. They all interpret local culture in the language of globalization. While adhering to the expansion of its own culture, it also selects local culture for integration. Although it seems that there is one east and one west, the framework of brand building and the thinking of product landing are the same. If there is conflict between the two, we will return to its business model for consideration.
Space exploration : If a venture capitalist is uncertain about the same property, which brand would you recommend first and how to balance it?
Lu Siyun : To be honest, there are few buildings that can be both Park Plaza and Jinjiang Capital. The positioning of these two brands is different. Park Plaza Hotel is a full-service hotel. It selects properties or buildings in a certain place. Jinjiang Metropolitan Hotel is defined as a service brand at the high and middle end, and its selection of external properties will be different. The positioning of the two brands is different. If there is a contradiction, we will return to its business model. From the perspective of matching venture capital and venture capital model, we should match higher revenue brands to make the model of venture capital better.
Space exploration : Now it is popular for the hotel industry to go out and come in. Take Jinjiang Capital Hotel as an example, will there be any plans for going out to sea in the future? Take Park Plaza Hotel as an example China What are the development goals and plans of?
Lu Siyun : The capital of Jinjiang is currently focused on three places. They are Guangdong plus two lakes region in East China and South China, and Beijing Tianjin region. East China is our stronghold and focus, and its cultural elements match well. The development of South China can help us form better market confidence in the industry, which is a support. Beijing Tianjin China The cultural elements of are matched with our cultural connotation. So we are committed to planning these three places and taking a strategic development path, focusing on high-quality development, while in terms of quantity, it is a conservative development. The signing target this year is about 50, and 20 will be opened. With regard to Park Plaza, this year's goal is to develop 10 cities. For this reason, we selected 10 cities as our focus and core, and returned to the first tier and new tier cities.
Space exploration : Jinjiang Hotel（ China District) has always emphasized that the number of hotels to be built is not the first indicator, and the sense of quality and quality will be the first. However, as far as I know, there is also a task assessment. What is the next goal of Park Plaza and Jinjiang Capital? How to balance the contradiction between quantity and quality, and truly achieve high-quality development.
Lu Siyun : In terms of quantity or KPI assessment, we should return to the essence of things. It is good for the future development of the brand that is its real choice point. If there is a conflict between quality and quantity, I will not hesitate to choose quality, because only by improving quality, can the brand have better development in the future. Development is not about short-term development, but about long-term development. Only when a good standard is met and a good business model can be verified, there will be an explosion period behind it.
As the manager of these two brands, I want to withstand the pressure and loneliness. If a professional manager's own KPI affects the real China The long-term development of a meaningful brand is not my value. On the other hand, personal KPI and quantity should be put aside, adopt The efforts of the whole team can create a China It is a national brand that we are proud of. In fact, compared with short-term quantity, it will make us proud.
Space exploration : Jinjiang Hotel（ China District) has many venture capital fans of Jinjiang brand. On March 21, Jinjiang established a venture capital club to provide better venture capital services for venture capital investors. What are the specific actions of Park Plaza and Jinjiang Capital to serve venture capitalists? How to cooperate with international vision and high quality to better impress venture capitalists?
Lu Siyun : We maintain the relationship between strategic franchisees, and also refer to brand ideas. This circle is formed by our in-depth understanding of the common spiritual symbols and cultural symbols of venture capital groups. How to provide better services for venture capitalists, and how to extract what consumers, especially young people, prefer from the core of brand spirit or product, depends not only on the youth of venture capitalists, but also on the youth of consumers. Good marketing is often the product itself, and it is the product that attracts customers. And cultural rejuvenation is a common discourse with young venture capitalists.
Space exploration : Jinjiang will follow the high-quality development strategy in the future. What measures will you take for the Jinjiang capital city that signed the contract earlier in the past, if in fact it cannot keep up with the pace of the times?
Lu Siyun : Frankly speaking, in the China Any brand of. May compromise quality for quantity. But our core principle is still around high quality. I believe our partners, venture capitalists and franchisees have the same attitude as me. For some hotels whose properties are relatively backward, we hope to give more support and give them a clearer upgrade standard, so that the hotel can be better upgraded. High quality development must have a relatively high and strict quality control. If the property can't be improved according to our requirements, we hope to have a better brand to match the property.
Space exploration : High and middle end hotel brands are also in fierce competition. What do you think are the opportunities for high and middle end brands in the future? Is it necessary to enter the "Thousand Store Club" to be truly successful?
Lu Siyun : From the commercial point of view, development must be the absolute principle. Only with scale can we have market influence. Of course, different brands have their own missions. As far as Jinjiang Capital and Park Plaza are concerned, they will not be large-scale in quantity. However, for high and middle end brands, we hope that Jinjiang Capital will move towards a larger market. Just like Hilton Huanpeng or Marriott's high-school scale chain brand, it can form an industry influence with both quality and scale, because its essence is a high-school business hotel chain.
Space exploration : The competition in the mid tier hotel market is very fierce. What opportunities do you have in the future? Is it necessary to enter the "Thousand Hotel Legion" to really survive?
Lu Siyun : At present, the competition among middle end hotels is really fierce. The survival of mid tier hotels mainly depends on the operation capability behind them and the overall perspective of the market. In terms of Country Inn, although Country Inn has gained a certain reputation abroad China The market is late, and the competitiveness of Beijing, Shanghai, Guangzhou and Shenzhen is not as strong as that of old hotels. Country Inn Hotel really follows the route of "surrounding the city from the countryside", so the development plan of Country Inn Hotel will first be settled in the new first tier cities and the second and third tier cities, and will compete with the old hotels in the first tier cities when it becomes famous.
But at this stage, I will not compromise the quality in order to achieve this goal. A brand has different stages from its establishment to its ideal state. In the early stage from incubation to development, more attention should be paid to quality rather than quantity. We need to implement the standard, define the business model, and do a good job according to the standard. We believe that the brand can achieve a leap in quantity.
Space exploration : Do you think the high-quality development of Jinjiang Capital or Park Plaza needs you to change some of its focus, perhaps in areas or places?
Lu Siyun : The most important thing is to clear the strategy, focus on trade-offs, and differentiate. Brand taboos are all inclusive, but none of them have core competitiveness. For example, build the attribute of business into the advantage of breaking through the ceiling. Within the limited investment, customers can experience more enjoyment. Let venture capital and consumer consumption be within the controllable range of investment and consumption. Or dig deep into the connotation of brand culture. In the case of Park Plaza, we will dig deep into its yuppie culture according to its European ancestry to make dull business more distinctive. For the capital city of Jinjiang, we will inject young soul into its century old culture. When stimulating the cultural connotation of Jinjiang Capital, let it resonate more with young people.
Greyhound Venture Capital Club Grand Opening
The first shot of high-quality brand development
The "Greyhound Club" of venture capitalists is an iHotel open platform focusing on venture capitalists and franchisees in the hotel industry, connecting the upstream and downstream industry chains of the hotel, and building a heterogeneous and homogeneous industry.
