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Go to the hotel to test the Wukong game yourself. Is e-sports hotel a good business?

2024-08-23

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"Black Myth: Wukong" has swept the global gaming circle in recent days. Recently, the popularity of "Black Myth" related search terms on Ctrip platform has increased by nearly 300%. In addition to the "flooding prosperity" of Shanxi's cultural tourism, where many filming locations of the game were set, the number of guests in e-sports hotels has also increased significantly in recent days.

According to data from Ctrip and other platforms, the multi-person rooms in many e-sports hotels have been sold out recently, and the e-sports rooms near university campuses are even hotter, with searches for e-sports rooms increasing by 40%. Among the fans of e-sports hotels during the summer vacation, nearly 70% of users are born in the 1990s and 2000s, and 75% of e-sports hotel bookers are men.

The author interviewed and personally tested an e-sports hotel in Shanghai. The hotel has 6 room types, ranging from more than 300 yuan to more than 600 yuan per night. The hotel has been fully booked in recent days. The clerk told the author that due to the launch of "Black Myth: Wukong", the hotel's occupancy rate has increased by 20% to 30% since August 20, and the occupancy rate has been basically 100% in recent days.

Entering the guest room, you can see that the bedding and bathing equipment are relatively ordinary, but the computer configuration is high, and the gaming experience is also very good. Unlike ordinary hotels, the e-sports hotel provides a lot of drinks and food, even instant noodles, which also meets the needs of e-sports guests to replenish energy at any time after playing games for a long time.

In fact, e-sports hotels have been around for a while, and some companies have tried e-sports hotels. For example, YUNIK hotels under BTG Home Inns are now distributed in 16 cities across the country, including 22 YUNIK e-sports hotels. All 22 stores have completed the download of the game "Black Myth: Wukong", and players in cities such as Beijing, Shanghai, Hangzhou, Hefei, Sanya, and Taizhou have responded very quickly. Jinjiang Group has launched IU Hotel, which is also equipped with e-sports facilities.

However, from the perspective of the overall market, the proportion of e-sports hotels is not very high, and large hotel chain groups such as Huazhu have not yet entered this field.

So why is the number of e-sports hotels not high?

The author believes that the current hotel market is divided into family guests, business guests, and non-parent-child pure tourists. In recent years, the growth rate of family guests has been rapid, so the number of family rooms in the mid-range hotel market has increased significantly. Most high-end hotels have strong business attributes and are mainly business guests. As for non-parent-child pure tourists, they are distributed in various segmented hotel markets according to their own economic strength.

The guests of e-sports hotels are mainly young people between the ages of 18 and 30, and most of them are men. They are not the fastest growing family guests, nor are they business guests, let alone pure tourists. The main demand of this group of e-sports guests is high-quality gaming experience, but they do not have high requirements for accommodation hardware. Relatively speaking, the proportion of e-sports guests is not too high, which is also the fundamental reason why most hotels do not provide e-sports services.

The sudden emergence of the game "Black Myth: Wukong" has attracted everyone's attention to the rapidly rising e-sports hotels, but the popularity of the game will always fade. For e-sports hotel investors, the most important thing is whether the e-sports hotel has long-term investment value.

Let's first look at the cost of e-sports hotels. The author understands that the investment in a single e-sports hotel varies according to different grades and sizes, but the number of guest rooms in a single e-sports hotel is generally less than that of an ordinary hotel, usually in the dozens, and some small-scale e-sports hotels have only more than 20 guest rooms.

The biggest investment in a single room in an e-sports hotel is in computer equipment. Each computer and related equipment costs about 10,000 yuan. A room is equipped with 2 to 4 computers. Bedding and other decorations can be controlled at about 50,000 yuan. Depending on the materials used, the cost of a single room in an e-sports hotel on the market is about 100,000 yuan. The investment in a single hotel is calculated based on the number of guest rooms. An ordinary e-sports hotel with 20 to 50 rooms costs 2 million to 5 million yuan. Of course, if it is a high-end e-sports hotel, the investment in a single store can reach tens of millions of yuan or even more.

From the market situation, compared with professional hotel companies, Wangyu, which mainly operates Internet cafes, has a higher share in the e-sports hotel market and has a wider coverage. According to industry estimates, for a single e-sports hotel with about 30 rooms, if the occupancy rate is around 80%, the annual room revenue is less than 3 million yuan based on the average room rate in the e-sports hotel market.

In addition to room rates, e-sports hotels also earn revenue from peripheral derivatives, such as game-related merchandise and food consumption in guest rooms. According to the author's observation, guests of e-sports hotels play games for a long time and will consume meals to some extent. Some guests will order takeout, and some guests will directly take food in the guest rooms. This income is also significantly higher than that of other ordinary hotels. Therefore, with the surrounding derivative income, a single e-sports hotel with about 30 rooms can earn more than 3 million yuan a year. At the same time, e-sports hotels can also hold e-sports related activities to increase revenue.

According to industry estimates, an e-sports hotel with about 30 rooms can pay back its investment in 2-3 years at the fastest. Of course, if it is located in a first-tier city with higher rent and labor costs, it will take about 5 years to pay back its investment.

The author learned that the investment for a single economy hotel with 100 rooms is about 7 million yuan, and the investment for a mid-range hotel of the same size is more than 10 million yuan, and the payback period is basically 5 years or more. In comparison, the investment amount of e-sports hotels is smaller, and the payback period is relatively faster. However, the operating costs of e-sports hotels will be higher than ordinary hotels. Electricity costs are a very prominent cost, and computers and related equipment are used frequently, so the depreciation and replacement speed is very fast.

In my opinion, the hotel market has entered an era of segmentation. Whether it is Hilton, which is working hard to launch diversified fashion brands or Huazhu, which has just opened its latest intercity hotel, they all show the trend of non-standard, diversified and flexible hotel development. E-sports hotels are a kind of special hotels with a personalized label. Such hotels are not suitable for family guests and business guests, but very suitable for young gamers.

From an investor's perspective, this is a vertical market segment with a low investment threshold and relatively quick returns, but "entrants" must pay attention to service and operation and maintenance, rather than just installing a few computers in the guest rooms and then "walking away."

"Black Myth: Wukong" has attracted more people's attention to e-sports hotels, but hoteliers must not be too eager for quick success. Building an e-sports hotel also means giving up some customers, and operators must understand the psychology of young players, pay attention to guest experience and e-sports event operations, and must not take shortcuts with "Black Myth: Wukong". After all, the popularity of the game is temporary, but business is long-term.