Space Secret Exploration found that as of the end of the third quarter of this year, InterContinental opened 20 new hotels in Greater China, 26 new hotels signed, and the scale of opening hotels in China officially exceeded 600;

According to Accor's third quarter financial report for 2022, as of the end of September, Accor had a total of 5,357 hotels, with a total of more than 789,000 rooms; 1,218 hotels were planned to be built, with a total of 212,000 rooms, of which nearly half will be in Asia Pacific .

/ Hyatt

Hyatt currently operates and manages 109 hotels in 48 cities and regions in Greater China, with a total of more than 30,500 rooms. Its 19 brands have entered China. Hyatt Group first settled in mainland China in 1986, and opened the semicolon in Tianjin. Hyatt's first hotel in mainland China - Tianjin Hyatt Hotel opened, and opened the second in Xi'an in 1990. After 2011, Hyatt developed rapidly in China, with its focus on first-tier and new first-tier cities in .Its brands are classified as eternal classic series, creative unlimited series, and independent brand series.

/ Wyndham

2022’s goal is to open more hotels in China than last year (opening 130+ hotels). As of May 5, 2022, there were 1,618 hotels in the Asia-Pacific region, of which 1,456 are located in China, accounting for 90% of the total number of hotels in the group.

In 1999, Howard Johnson entered mainland China; in April 2004, Beijing Tianrui Hotel Group was awarded the total franchise developed in China by the US Speed ​​8 brand under Wyndham Hotel Group . In the same year, the first Speed ​​8 hotel opened in Beijing. At this point, Wyndham became the first international hotel group to implement a franchise model in China; in 2015, Wyndham Hotel and Resort Hotel accelerated its expansion in the Chinese market. The expansion strategy of the group's high-end brand in China is no longer limited to Beijing, Shanghai and Guangzhou, but has been scattered to second- and third-tier cities and other regions, showing a trend of blooming in multiple points.

In 2022, Wyndham Hotel Group is constantly moving in China. Wyndham Makeda will accelerate its strategic expansion in China this year. It is expected that the number of Wyndham Makeda hotels in China will increase by nearly 3 times, and more than 10 hotels are planned to open in Sanya, Changsha, Weihai and Fuzhou.

Six major international hotel groups currently open in China

Do you make money in China?

6 The big head international hotel group continues to expand in China. What is the ability to make money? The clues can be seen from this year's financial report.

/ Intercontinental

According to Q3 financial report data, compared with the same period in 2019, Intercontinental Q3 occupancy rate fell by 6 percentage points, and ADR increased by 11%. RevPAR grew by 2.7%, and there is still a 20% gap between RevPAR in Greater China and pre-epidemic comparison. However, although it still does not meet the standards before 2019, InterContinental has strong recovery momentum in Europe, the United States and Asia-Pacific. In the first half of 2022, the group's global operating income was US$1.774 billion, an increase of 52.16% year-on-year, and its net profit for the period was US$216 million. The recovery rate of InterContinental in Greater China is also relatively slow. RevPAR in the third quarter decreased by 20% compared with the same period in 2019. However, compared with the declines of 42% and 49% respectively in the first two quarters of this year, Q3 has already improved greatly.

/ Marriott

According to financial report data, in the first half of 2022, operating income was US$9.537 billion, and increased by 74.51% year-on-year; net profit was US$1.055 billion, an increase of 156.69% year-on-year. Greater China RevPAR is $44.13, ADR is $135.16, and Marriott International 6 Greater China RevPAR exceeded the 2019 level.

/ Hilton

Hilton Hotel Group announced its Q3 financial report this year, with revenue of US$2.368 billion in the quarter, a year-on-year increase of 35%; net profit of US$346 million, exceeding the previous performance outlook expectations. Q3 hotels in the entire system have a 5% increase compared with the same period in 2019. Judging from the performance of different regional markets, the occupancy rate of Hilton Hotel in the first three quarters of this year was the lowest in the Asia-Pacific market, at 52.3%, and the occupancy rate in the United States was the highest, at 70.5%. The RevPAR in the Asia-Pacific market was US$53.46 during the same period, and the North American market was as high as US$111. In the third quarter, Hilton's RevPAR in the Chinese market fell 14% compared with the same period in 2019, and 's performance increased by 33 percentage points month-on-month.

/ Accor

Accor Hotel Group announced its Q3 financial report, with revenue of US$1.16 billion, an increase of 9% over 2019; RevPAR increased by 14% compared with 2019, and average housing prices increased by 23% compared with 2019. Accor expects core revenue to reach nearly US$645 million in 2022.

/ Hyatt

According to the first half of the year's financial report released by Hyatt this year, the total revenue in the first half of the year was US$2.762 billion, an increase of 150.86% year-on-year, the largest increase in revenue of several major international hotels. Net profit in the first half of the year was US$133 million, a year-on-year increase of 142.49%.

/ Wyndham

Wyndham Hotels and Resorts announced Q3 financial report, the announcement showed that the company's net profit attributable to the parent company's common shareholders in the third quarter of 2022 fiscal year was US$101 million, a year-on-year decrease of 1.94%; operating income was US$407 million, and fell 12.1% year-on-year. In the third quarter, Wyndham Global Hotel RevPAR rose 12% year-on-year, equivalent to 111% of the same period in 2019. In contrast, although RevPAR in the United States only rose by 2%, it has exceeded 10% from the 2019 level.Among them, the RevPAR in Greater China in Q3 was US$14.97, a year-on-year decrease of 5%. It is the only regional market to decline, with a 21% gap compared with the pre-epidemic level. As of September 30, 2022, global guest rooms grew 4% year-on-year, with the United States growing 1% and the international ones growing 9%. These growth included strong growth in the higher mid-range and above segments of RevPAR in the U.S. and strong growth in direct franchise operations in China, up 6% and 8% respectively.

2022 Q3/semi-annual financial report of the six major international hotel groups

According to incomplete statistics of space secret exploration, it can be seen from the table that the Accor, Wyndham and Hilton, which have been announced in the third quarter, had the highest operating income of Hilton, with the strongest growth momentum, and Wyndham was the only one of the three hotels, with a decline in operating income, 12.1%. In the financial report for the first half of 2022, Marriott's operating income increased from US$5.465 billion last year to US$9.537 billion, and its net profit increased from US$411 million in the same period last year to US$1.055 billion, ranking first among the six major international hotel groups. Although the six major international hotel brands are not as good as those in Europe and the United States in the Asia-Pacific region and Greater China, based on the data from the first five years, overall, the revenue of the six major international hotel groups in China is still stable and has a good development trend. This may be the main reason why international giants frequently deploy hotels in China.

What are the "high tricks" to develop in China?

How do foreign monks recite good scriptures? How to compete with many local hotel groups? Major international hotel groups also have their own "tricks".

01 Franchise for 20 years

The so-called franchising refers to the owner controlling the business control of the hotel. The brand supervises whether the hotel's hardware and software meet the brand standards through brand audits and other quality control systems .

In contrast, the delegation management model. In the late 1990s, International Hotel Group began to practice franchise in the Chinese market, and franchise in my country's hotel industry began to gradually develop, and it has been more than 20 years since then.

According to the monitoring data of the Asia Hotel Big Data Research Institute in 2021, Marriott's franchise model accounts for 11% of the 420 hotels that have been opened in China; among the more than 330 hotels that are being built, the franchise model accounts for 21%. Moreover, in 2021, the proportion of franchise for Marriott's newly signed hotels in China has increased to 50%. Looking around the world, Marriott owns 7,600 hotels, and the franchise model accounts for more than 70%. It is not difficult to imagine that Marriott's franchise share in the Chinese market will still have room for growth in the future.

International Hotel Management Group first adopted the "product + brand" franchise model in China, was the Wyndham Group in the United States. In 2022, Wyndham Hotel Group continued to maintain a strong momentum based on the opening of more than 100 new hotels in 2021. In the first quarter, it opened 11 new hotels and resorts in Greater China, achieving rapid growth. Next, we plan to continue to launch new lifestyle and long-term living brands, and combine Wyndham Makeda and Wyndham Viagra, which joined the market last year, to consolidate their leading position in the franchise.

From the development of the franchise model of international hotels in the Chinese market for more than 20 years, it can be seen that franchisees are cautious about the opening up of the brand. Economic and mid-range brands such as Mercedes, Novotel , Mercure, Ibis Styles and Ibis, which have been opened for franchising under Accor, are actually the final result of years of testing. Step by step is what franchisees have always followed in the development of brand franchise. However, franchise is indeed the future direction of the International Hotel Group. Sun Jian, chief development officer of the Greater China, even bluntly stated, "InterContinental Hotel Group relies on commissioned management in the first 30 years in China, and franchise in the next 30 years."

02 Advance into the western region

As first- and second-tier hotels in developed regions are becoming saturated, more and more international hotels have already classified the western region into their next market expansion direction. Most of the western regions have relatively backward economies, but they have unique natural resources and customs.

Martford entered the Xi'an market in 1991. More than 10 hotels have settled in Xi'an. Last year, Marriott Yuansu (Element) successfully signed a contract with Crystal Huixi Square, which is the first entry into the central and western regions of the brand.

InterContinental has set its sights on the southwest market early. Its Lijiang Hefu InterContinental Resort Hotel and Lijiang Ancient City Indigo Hotel are the first batch of international hotels to enter the local area.

At the opening ceremony of of Chengdu Hilton Hotel in 2015, Hilton revealed the ambition of "we have prepared for the expansion of layout and vigorous development in western China." At that time, Hilton had 11 hotels in Chengdu alone, and Hilton's hotels in Yunnan and Urumqi had also been completed.

According to incomplete statistics from Space Secret Exploration, the international hotel group represented by Marriott, Hilton, InterContinental and Hyatt has opened more than 300 hotels in the western region. The advance layout of the West may not have fully demonstrated economic benefits, but in the near future, it may bring more " cash flow " to international hotel groups.

03 Chinese and foreign brand marriage

According to incomplete statistics from the Asia Hotel Big Data Research Institute, there are currently 30 marriage brands created by 10 different Chinese and foreign genes in the local hotel market.

In 2019, Hyatt and Ctrip established a joint venture, Yusu Hotel Management Co., Ltd., and in August 2020, it launched the Yifei brand for the Chinese market. Yifei, which inherits Hyatt's professionalism, high-end and efficient and market acumen, has been opening and welcomed in Shanghai, Chengdu, Nanjing and other cities over the past two years, in line with the "China speed". According to the plan, the number of Yifei Hotel openings will reach 300 within five years, and will be laid out in business and travel destinations and vacation destinations of business and travelers.

Accor and Huazhu are also partners for many years, and have also provided opportunities for brands such as Mercedes, Novotel, Mercedes, Ibis Styles, and Ibis to open up their local markets in China and achieve expansion. Deutsche Hotel Group, which was acquired by Huazhu, has made frequent moves after brands such as Shiboge and Intercity Hotel were introduced. This year, Shangmei has also become the exclusive strategic partner of Accor Group's high-end brand Accor Moven in China, and will be fully responsible for the development, construction, operation and management of Accor's brand in the Chinese market. This is also the first time Accor has exclusively franchise its high-end brand to China's local wine management group in China. Before this, Accor and Huazhu's collaboration was mostly economical and mid-range hotels. Through the collaboration with Shangmei, Accor also achieved a large-scale coverage of high-end, mid-range and economical hotels in China through "brand marriage".

Hilton Hampton and Hilton Huiting, introduced by Jinjiang and Fengyue respectively, also achieved rapid expansion. Hilton and Jinjiang not only extend the cooperation agreement until 2034, but also plans to achieve the goal of opening 600 companies in China by 2034. As of October 31, Hilton Hampton China has opened 265 hotels. The signing speed of Hilton Homewood, which has been introduced for only two years, cannot be underestimated. As of October 2022, it has completed the signing of the contract and has signed more than 200 hotels, covering key cities such as Beijing, Shanghai, Guangzhou, Shenzhen, and Chengdu.

Obviously, the integrated gene not only exerts the brand advantages of international hotel groups, but also combines the comprehensive advantages of local hotel groups such as property, operation, and marketing. It means a higher starting point and achieves a win-win situation, especially it has very important strategic significance for international brand promotion and expansion.

China-foreign marriage hotel brand

In summary, the six major international hotel groups have moved forward drastically in my country from the initial exploration, trial and error to adapting to national conditions. Although they have experienced various ups and downs, they have still steadily improved and achieved outstanding results in China. The persistence of International Hotel Group in China witnesses the huge potential of the Chinese hotel market. Many aspects of the international hotel group's local cultural integration, brand concept creation, refined operation, etc. are also worth learning from by domestic hotel groups. I believe that the Chinese hotel market will reappear after the joint efforts of the international hotel group and the domestic hotel group.