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recently, the major hotel groups that have attracted much attention have successively released their operating and expansion status in the first half of 2024. "accelerated expansion, increased revenue, and reduced profits" has become a global industry phenomenon. among them, the decline in regional data represented by china may be the most obvious.

domestically, hotel groups with faster expansion in the mid- to high-end market saw a significant increase in revenue, and the average occupancy rate (occ) also maintained a positive growth trend; internationally, all major groups had positive net profits, while the average room rate (adr) and average revenue per available room (revpar) showed a situation of "global growth and general decline in china".

according to the data from the ministry of culture and tourism, in the first half of 2024, the number of domestic tourists reached 2.725 billion, a year-on-year increase of 14.3%; the total expenditure of domestic tourists reached 2.73 trillion yuan, a year-on-year increase of 19.0%. the overall growth trend of the tourism economy may bring new growth momentum to the hotel industry.

01

domestic hotel group financial report for the first half of 2024

1. revenue maintained steady growth, while net profit declined year-on-year, with losses of large hotels increasing by more than five times

revenue situation and year-on-year level: among the 14 domestic hotel groups, huazhu group had the highest revenue of 11.43 billion yuan, a year-on-year increase of 14.15%; jinjiang hotels ranked second with revenue of 6.892 billion yuan, a slight increase of 0.23% year-on-year; bts hotels had revenue of 3.733 billion yuan, a slight increase of 3.46%; atour group had revenue of 3.265 billion yuan and may surpass bts hotels by the end of the year; lingnan holdings had revenue of 1.926 billion yuan, and the effect of the acquisition of metropolitan hotel group was evident; junting hotel had revenue of 331 million yuan, a year-on-year increase of 49.75%.

in addition, the grand hotel, miramar hotel and hua da hotel mainly target the hong kong market, and their revenue increased year-on-year; green hotel and pudding hotel mainly focus on mid-range and below products, and their revenue declined year-on-year.

profitability and year-on-year performance: among the 14 domestic hotel groups, huazhu group had the highest net profit attributable to shareholders of rmb 1.726 billion, down 13.92% year-on-year; jinjiang hotels group's net profit increased significantly by 59.15% to rmb 848 million, mainly affected by the pre-tax investment income of rmb 420 million from fashion travel; atour group's net profit attributable to shareholders of rmb 562 million, up 118.33% year-on-year, of which its retail gmv reached rmb 1.115 billion in the first half of the year; btg hotels group's net profit was rmb 358 million, up 27.49% year-on-year, mainly benefiting from the overall scale growth and the increase in the proportion of franchised hotels and mid- to high-end hotel structures.

in addition, wanda hotel development suffered a loss of 470 million yuan, mainly due to the sale of its equity interest in parcel c llc; green hotel, junting hotel, and jinling hotel all had positive net profits attributable to their parent companies, but they declined year-on-year; grand hotel, huatian hotel, huada hotel, and pudding hotel both had negative net profits attributable to their parent companies and negative year-on-year growth, with challenges and pressures coexisting.

summary: in the first half of 2024, the overall data of major domestic hotel groups increased, revenue maintained steady growth, and the leading companies in mid-to-high-end and above hotels performed relatively well; the net profit attributable to shareholders was generally positive, but most companies saw a year-on-year decline.

2. occupancy rates in the second quarter showed divergent performance, revpar all fell year-on-year, and store expansion entered a "rational period"

operating conditions and year-on-year level: overall, the revpar and adr of the four domestic hotel groups all showed negative year-on-year growth. in terms of occ, huazhu group increased by 9.78% year-on-year to 82.6%; saw boutique hotel was 78.4%, a slight increase of 1.3%; and the limited service hotels and btg hotels under jinjiang hotels were around 65%, a slight decline year-on-year.

specifically, in the first half of the year, the revpar of all hotels of btg hotels, excluding lightly managed hotels, was 160 yuan, a year-on-year decrease of 2.1%. among them, the revpar in the first quarter was 147 yuan, a year-on-year increase of 2%; the revpar in the second quarter was 172 yuan, a year-on-year decrease of 5.1%. in the first half of the year, the adr of jinjiang's full-service hotels in mainland china reached 511.16 yuan/room, of which 520.18 yuan/room in the second quarter, a year-on-year decrease of 2.38%; the adr of limited-service hotels was 246.30 yuan/room, of which 249.86 yuan/room in the second quarter, a year-on-year decrease of 1.84%. for huazhu china hotels, which have been in operation for at least 18 months, the average revpar of the same store in the second quarter was 248 yuan, a decrease of 3.6% from 257 yuan last year; the same-store adr decreased by 4.1%, offset by a 0.4% increase in the same-store occ.

expansion: as of june 30, 2024, huazhu group has 10,286 hotels and 1,001,865 rooms in operation worldwide, and 3,294 hotels to be opened. among them, huazhu china opened 569 hotels and closed 148 hotels in the first quarter, with a net increase of 421 hotels; in the second quarter, 567 hotels were opened and 101 were closed, with a net increase of 466 hotels.

as of june 30, 2024, jinjiang hotels has opened 12,938 hotels and 1,231,730 rooms. in the first half of 2024, jinjiang hotels opened 680 new hotels, withdrew 190 hotels, and opened a net increase of 490 hotels. among them, the number of directly-operated hotels in limited-service hotels decreased by 47, and the number of franchised hotels increased by 536.

as of june 30, 2024, the total number of btg hotels is 6,475, with 492,069 guest rooms. among them, there are 1,849 mid- to high-end hotels, accounting for 28.6%; the number of guest rooms is 200,612, accounting for 40.8%. in the first half of 2024, btg hotels opened 567 new hotels, a year-on-year increase of 7.8%; among them, the number of standard management hotels opened was 271, a year-on-year increase of 60.4%.

summary: in the first half of 2024, the occ of the four major hotel groups showed polarization, while revpar and adr generally declined; at the same time, the expansion efficiency of the three major groups remained stable, and store quality and development speed coexisted.

huazhu group ceo jin hui believes that the decline in china's hotel market data in the first half of the year was mainly affected by macro-consumption, and last year's high base is also unsustainable. he said that huazhu group's summer data in july and august this year will drop by about 10% year-on-year.

02

international hotel group financial report for the first half of 2024

1. revenue increased slightly year-on-year, and net profit attributable to parent companies was all positive, among which hyatt hotels increased 6 times year-on-year

revenue and year-on-year growth: among the nine international hotel groups, marriott international had the highest revenue of us$12.416 billion, a year-on-year increase of 6.21%; hilton ranked second with revenue of us$5.524 billion, benefiting from the expansion of stores in china with a year-on-year growth of up to 11.53%; hyatt hotels corporation ranked third with revenue of us$3.417 billion, a slight increase; accor group had revenue of 2.677 billion euros, a significant year-on-year increase of 11% thanks to the impact of the paris olympics.

in addition, intercontinental hotels group maintained steady development and ranked fifth, with revenue increasing to us$2.322 billion; shangri-la hotel group and choice hotels international achieved slight growth, with revenue of 7.477 billion yuan and us$767 million respectively; wyndham hotel group fell slightly to us$671 million, and langham hospitality group fell 18.91% to revenue of 175 million yuan.

profitability and year-on-year level: among the nine international hotel groups, marriott international's net profit attributable to shareholders was the highest at us$1.336 billion, a year-on-year decrease of nearly 10%; hyatt hotels corporation achieved a substantial increase of 599.21% to us$881 million, mainly due to its real estate sales and other income of approximately us$350 million; hilton group and accor group's net profits attributable to shareholders both exceeded us$500 million, up 11.18% and 13.00% year-on-year respectively; although intercontinental hotels group, shangri-la group, choice hotels international, wyndham hotels international and langham hotels international all had positive net profits attributable to shareholders, they declined year-on-year. among them, the reasons attributed to langham hotels international include changes in the structure of travelers, the emergence of new consumer behaviors, and the slowdown of the hotel portfolio business starting in march 2024. ‌

summary: in the first half of 2024, major international hotel groups as a whole rose, but the revenue growth was small, and the net profit attributable to the parent company showed obvious differentiation year-on-year.

2. occupancy rate increased in the second quarter, revpar in china declined year-on-year, and crazy expansion is still the mainstream

operating conditions and year-on-year level: marriott international, hilton, hyatt hotels corporation, and intercontinental hotels group all achieved comprehensive growth in occ, adr, and revpar. among them, hilton group's global occ reached 75.3%, a year-on-year increase of 1.3%; hyatt hotels corporation and marriott international's global occ also exceeded 70%. in terms of revpar, marriott international and hyatt hotels corporation were evenly matched, reaching us$150.24 per room and us$149.31 per room respectively, a year-on-year increase of 4.9% and 4.7% respectively.

meanwhile, the occ of the four major hotel groups in china remained stable, but revpar and adr declined year-on-year, with wyndham hotel group's revpar falling the most, by 17%. in response, all major hotel groups attributed it to the strong demand for china's outbound travel market, which led to a decline in domestic travel demand.

in terms of expansion: marriott international recently announced the opening of its 9,000th hotel worldwide, but at the same time revealed that the number of hotels in greater china was 553 as of the first half of this year; hilton group announced the opening of its 700th hotel in greater china, and its hampton by hilton brand, which has entered china for ten years, has reached the milestone of 400 hotels in china; accor group added 146 hotels worldwide in the first half of the year, with a total of 24,000 rooms; intercontinental hotels group signed 384 new hotels in the first half of the year, with an estimated 57,100 rooms, a year-on-year increase of 67%.

according to incomplete statistics from maidian research institute, there will be 1,405 mid- to high-end and above hotels opened in greater china in 2024, including 1,185 mid- to high-end hotels, accounting for 84.34%, and 1,153 branded hotels, accounting for 82.06%. at the same time, in terms of the opening of international hotel groups, there are 237 mid- to high-end branded hotels, 72 international high-end branded hotels, and 22 international luxury branded hotels, accounting for 23.56%, which still has a lot of room for improvement.

summary: in the first half of 2024, the occ performance of major international hotel groups was good, with overall improvement in the world and china; revpar and adr increased globally, while there was a general decline in china.

marriott international cfo leeny oberg said that the current demand and pricing trends for hotels in greater china may continue to be weak, and "revpar will show a more significant decline in the third quarter due to the acceleration of summer outbound travel."

03

financial reports of other types of hotels in the first half of 2024

1. the hotel revenue of real estate companies generally declined, the occ in the luxury and high-end fields was relatively low, and the development of mid-to-high-end brands was surprising

revenue and year-on-year level: looking at the hotel business of 17 real estate companies, r&f properties' hotel revenue reached the highest of 2.762 billion yuan, down 7% year-on-year; shimao group and powerlong real estate's hotel revenue were 1.07 billion yuan and 449 million yuan, respectively, up 1.4% and 1.12% year-on-year; china resources land, china jinmao, kwg, kerry properties, wharf holdings, and central china real estate's hotel revenue were 1.04 billion yuan, 885 million yuan, 822 million hong kong dollars, 365 million yuan, 291 million hong kong dollars, and 169 million yuan, down 3.8%, 17%, 3%, 7.5%, 2%, and 2.36% respectively; the specific data on the operation of hotels, apartments, and commercial-related business units such as poly developments, beichen industrial, china overseas, hongyang real estate, and yuexiu real estate are for reference only.

business operation level: as of the end of june 2024, greenland holdings has 10,676 hotel rooms and an occ of 49.4%, which is relatively sluggish. china resources land group's hotel occ is 62.5%, a year-on-year decrease of 1.4%; there are 17 hotels in operation with 4,995 rooms. the book value of the group's opened hotel assets is 12.48 billion yuan (including land use rights). as of june 30, 2024, the total hotel construction area is 780,000 square meters, an increase of 1.0% year-on-year, and the equity construction area is 650,000 square meters.

at the same time, china merchants shekou opened a new citadines yazhou bay sanya, adding 133 new guest rooms and achieving 100% occ in the opening month; wharf operates 16 hotels in hong kong, mainland china and the philippines, under the three brands of niccolo, marco polo and maco, of which it wholly owns four and owns 50% of the equity in another.‌

summary: in the first half of 2024, the hotel revenue of real estate companies with a relatively high proportion of high-end and luxury hotels generally declined year-on-year, while the revenue of real estate companies with a relatively high proportion of mid-to-high-end hotels and self-operated brands increased year-on-year.

2. the operating performance of small and medium-sized wine management companies is unstable, and only yushe holdings has achieved double growth in revenue and net profit

revenue and year-on-year level: an inventory of 8 small and medium-sized hotel management companies listed on the new third board found that their overall operations are greatly affected by the market environment, customer consumption and business upgrades, and problems in the short term are easily magnified by the capital market. in terms of revenue, meiyue holdings, yushe holdings, tongli tourism, and gujing hotel were all at the 30 million yuan level in the first half of the year, while yami hotel, qiaoying holdings, everbright holdings, and sotel hotels were less than 10 million yuan. in terms of net profit attributable to the parent company, only yushe holdings achieved a year-on-year increase, while tongli tourism reduced its losses, and the others were basically at the break-even line.

business operation level: in the direct-operated section, meiyue group has 23 direct-operated stores, including brands such as "ms meisu intercontinental", "ms meisu yaju", and "melotin"; yami hotel has 7 direct-operated stores, all of which are economy hotel brands "youmi hotel chain"; tongli tourism provides boutique hotel operations and services integrating guest rooms, catering, conferences, leisure and entertainment, including more than 450 guest rooms and more than 20 conference rooms of various types; everbright group relies on the customer resources of the real estate group to provide comprehensive management services such as hotel management, property services, and hotel catering, and obtains service fees, management fees and catering fees.

in the chain sector, gujing hotel operates in a differentiated manner, focusing on the two market segments of economy and limited-service hotels in anhui province, and has launched multiple brands including "city home", "junlai", "qieman hotel", "city wo", "city orange" and "city home selection"; qiaoying co., ltd. is the exclusive licensee of the tonino lamborghini brand in the hotel industry in greater china, and currently operates 7 hotels; yushe co., ltd. includes two major business models: hotel management and property services, and mainly develops hotel accommodation projects with its own characteristics under the "yushe" brand.

summary: as the top hotel groups gradually accelerate their expansion into lower-tier cities, chain-type small and medium-sized hotel management companies either choose to upgrade their products and launch new brands, or actively join forces with ctrip and elong to seek rapid growth. direct-operated hotel management companies, on the other hand, focus on property management!

04

summary and outlook

since 2024, the overall recovery of the global tourism market has accelerated, and the demand for domestic business travel and leisure travel has continued to be released. phenomena such as "144 visa-free", "city not city", and "china hotel" have attracted foreign fans, while internet celebrity check-in spots, reverse travel, and low-altitude economy have become new highlights of the market.

during the same period, the overall performance of hotel groups improved in the first half of the year, but the increase was not obvious, showing signs of "weak growth, increased revenue but not increased profits". this shows that in the face of diversified development trends and personalized consumer needs, the hotel industry still faces huge challenges and uncertainties.

on the one hand, we will seize key market opportunities through scale expansion, digital transformation, product enhancement, brand renewal and iteration, asset-light transformation and other methods; on the other hand, we will constantly review and adjust investment, operation and asset management models, and actively explore and open up new paths. the end of huge profits and the beginning of small profits, the ultimate test of the hotel industry is a long way to go, we will wait and see!