Mid-range hotels, led by Starway and Vienna, will become the new hotspot for hotel chain brands. Recently, Wu Wei, the newly appointed Chief Operating Officer of Shenzhen Vienna Hotel Group and a veteran in the domestic hotel industry, said in a media interview.
With the economic recovery, the mid-range hotel market, which has always been quiet, is also making big moves - Starway Hotels, China's first nationwide mid-range hotel group, has completed its preliminary national layout. Currently, it owns 60 high-quality hotels in 22 cities, including .
Wu Wei, who has served as Vice President and General Manager of South China Region and Operations Director at Home Inn, Vice President of 7 Days Group, Vice President of Guangdong Hotel Industry Association, part-time lecturer at Sun Yat-sen University School of Hotel Management and Tourism College, has witnessed the rapid growth of China's modern hotel industry. Recently, he "jumped ship" from his position as Vice President of Home Inn to become the Chief Operating Officer of Shenzhen Vienna Hotel Group, sparking "curiosity" among insiders and outsiders about his career choice. In a recent media interview, he said: "In the future, mid-range hotels will become the new investment hotspot, and he hopes to once again stand at a new height, taking on a new challenge in life."
Starway completed its "preliminary" national layout in mid-November
The 60th Starway hotel officially opened in mid-November, completing the opening of 60 high-quality hotels in 22 cities across the country, achieving its preliminary national layout, providing an effective way for the "breakthrough" of 10,000 mid-range hotels in the country. Currently, there are already 10 hotels in Beijing alone. There are two Starway hotels in Guangzhou, and the Pearl River Delta will become an important development area for Starway hotels in the next year.
Aiming at mid-range hotels, Starway "accelerates" its national layout in early December
Although mid-range hotels are the mainstay of the domestic hotel market, they have lacked strong brands for a considerable period of time, while the market demand for chain-branded quality mid-range hotels is very strong. Industry insiders say that business travelers have a large demand for the mid-range hotel market, with their budget generally ranging between 250-400 yuan, which is exactly the market space dominated by numerous individual three-star hotels lacking strong branding. Due to the competitive disadvantage of individual hotels, they cannot compete with chain hotels, causing some consumers to shift towards lower consumption and choose economy hotels. Liu Jiajun, Executive General Manager of Starway Hotel Group, revealed in an interview that in Beijing, a key region, Starway already owns 10 hotels, all located in the most prosperous areas of Beijing. Starway has locked onto East China, North China, and the Pearl River Delta as the next development focus, planning to increase development and deployment in these regions, aiming to add another 100 hotels within a year. It is expected that by the end of next year, Starway plans to own 150 hotels.
As the only national mid-range hotel brand currently in the market, Liu Jiajun, Executive General Manager of Starway Hotels, stated that the target audience for Starway is mainly business people, with middle-income family tourism as a supplement. For these consumers, economy hotels appear too "rudimentary" due to excessive cost compression, failing to meet their needs. He stated that Starway's software and hardware levels comprehensively surpass those of economy hotels, with location, room size, guest room facilities, and decoration far superior to economy hotels. Bath products are specifically developed and registered under their own brand, reaching the standards of high-end hotels.
Mid-range hotels will become the new investment hotspot
Starway and Shenzhen Vienna-led mid-range hotels will become the new hotspot for hotel chain brands. Recently, Wu Wei, the newly appointed Chief Operating Officer of Shenzhen Vienna Hotel Group and a veteran in the domestic hotel industry, said in a media interview.
Wu Wei believes that a greater development opportunity for China's hotel industry in the future lies in the transformation of three and four-star hotels and other mid-range hotels. With the formation and development of China's middle class, and with the enhancement of China's economic status in the world economy, the consumption power of the Chinese people will grow explosively. In the future, there will be a large demand for three and four-star mid-range business hotels.
Wu Wei said that there are 6,000 to 8,000 mid-range business hotels nationwide, mainly three-star hotels. Many three and four-star hotels (mainly state-owned hotels) currently have unsatisfactory survival conditions, developing poorly across the product line, and some of the hardware facilities evaluated during star ratings have gradually aged. Relevant parties are also preparing to marketize and transform this type of hotel. This is a huge market opportunity and also a chance for comprehensive integration.