Core view
Tracking the rise and fall of the sector: this week, the Shanghai Composite Index fell 1.63%, the Shenzhen Component Index fell 1.35%, and the gem index rose 0.73%. SW Hotel II fell 1.40%, and Jinjiang capital, the subject of Hong Kong stocks, rose 0.34%.
Business data of China’s hotel industry: in the third quarter of 2021, there were 6999 star hotels in China, with a year-on-year increase of + 1.52% and a month on month increase of – 0.86%; The operating revenue of China’s star hotels was 35.391 billion yuan, a year-on-year increase of – 3.99% and a month on month increase of – 19.12%; The catering revenue was 14.071 billion yuan, accounting for 39.76%, and the room revenue was 14.873 billion yuan, accounting for 41.94%. The average house price of star rated hotels nationwide was 345.05 yuan / room, a year-on-year increase of + 6.1%; The average rental rate was 43.68%, with a year-on-year increase of -10.91%. There were 791 one – and two-star hotels nationwide, with a year-on-year increase of – 8.34% and a month on month increase of – 1.37%; There were 6208 Hotels with three stars and above, with a year-on-year increase of + 0.18% and a month on month increase of + 1.90%.
Industry news: Marriott has set up a new R & D laboratory to focus on leisure travel and develop flexible space. The group’s new headquarters in Maryland has established a 10000 foot (about 930 square meters) design laboratory, which is planned to open this year, and has established cooperation with LG, equipment company carrier global and several start-ups. Fujian tourism development group cooperates with Huazhu to build a new digital hotel. The two sides set up a mixed ownership hotel management company, and the first project plans to build Dongshan Hemingway Hotel into a five-star resort hotel. Relying on the advantages of Huazhu group’s own technology, brand and flow, we will deeply explore the digital hotel standards and cultivate digital hotel talents.
Investment suggestion: since 2020, the tourism industry has performed poorly due to the epidemic, and the number and performance of hotels have declined sharply, but at the same time, it has accelerated the clearing of the supply side of the hotel industry, and the leading enterprises have further improved the concentration. With the effective control of the epidemic in China and the recovery of consumer demand, China’s hotel performance will usher in a comprehensive recovery. It is suggested to pay attention to the leading hotel groups with high market share in China: Huazhu, Shanghai Jin Jiang International Hotels Co.Ltd(600754) , Btg Hotels (Group) Co.Ltd(600258) .
Risk tip: the epidemic has repeatedly affected the recovery of demand, the expansion speed of stores is lower than expected, and the industry competition is intensified.
