In the third quarter of 2023, the summer peak season will be ushered in, and the domestic business travel and leisure tourism market will recover strongly due to the impact of multiple factors such as research, parent-child, summer vacation, health care, and vacation. Against this backdrop, international hotel groups performed well in Greater China in the third quarter, becoming their growth engines. Similarly, major domestic hotel groups have seized the opportunity of the peak season, and have significantly improved their operating performance by actively promoting brand renewal and upgrading, strengthening membership marketing, smart hotel and scene construction, hotel digital construction and information empowerment management, among which the revenue of six hotel groups, including Huazhu, Atour, Green, BTG, Junting and Huatian, has exceeded the revenue of the whole year of 2022 in the first three quarters.
1. 2023Q3 international hotel group financial performance
1.2023Q3 International Hotel Group Revenue and Profit: Marriott International has the highest revenue; Hilton Hotel leads the way in revenue growth; Hyatt Hotels' net profit jumped significantly, with a year-on-year increase of more than 100%.
In the third quarter of 2023, benefiting from the recovery of international tourism, the operating performance of the global hotel industry picked up: among the six international hotel groups, Marriott International's revenue was 59US$2.8 billion and net profit of 7US$5.2 billion, ranking first among all groups, firmly in the "top spot".
At the year-on-year revenue level, except for Wyndham Hotels & Resorts, the remaining five companies showed a positive year-on-year growth trend, and the year-on-year growth rate was significantly differentiated, with Hilton, Marriott International, and Accor all growing at about 12%, ranking in the first echelon, while Hyatt and Select International increased by 2%-6%, which was the second echelon.
In terms of net profit year-on-year, except for the negative growth of selected international hotels, the remaining four were all positive growth, of which Hyatt Group increased significantly, with a year-on-year increase of 14286%, followed by Marriott International, with a year-on-year increase of 1937%。Hilton and Wyndham grew by less than 10% year-on-year, respectively. 98%。
In addition, the revenue of each international hotel group in the first three quarters of 2023 is compared and analyzed, and the order from high to low is: Marriott International 176$200 million, Hilton 76$2.6 billion, Hyatt 500.7 billion U.S. dollars, select international 11$8.6 billion, Wyndham $10$7.8 billion. Except for Wyndham, the revenue of the other four companies exceeded the full year of 2021; Compared with the annual revenue of 2022, it has not been exceeded, and the overall completion rate is in the range of 71%-87%, and the annual revenue of each international hotel group in 2023 will exceed that of 2022.
2.2023Q3 International Hotel Group Operation and Expansion Data Performance: The overall growth trend of various operating indicators continued, and the number of rooms continued to rise in the world
In the third quarter of 2023, thanks to the recovery of leisure and business travel and the growth of group bookings, the operating indicators of major international hotel groups showed a positive year-on-year growth trend: taking the hotel RevPAR indicator as an example, Accor's overall RevPAR in the third quarter increased by about 15% year-on-year, which was higher than expected; IHG's overall RevPAR in the third quarter increased by 10% year-on-year5%, an increase of 12 compared to 20198%；The overall RevPAR growth rate of Marriott International and Hyatt Hotels was about 9% year-on-year.
In the third quarter, major international hotel groups continued to "stake their ground" around the world, with new openings, new contracts, and hotels under construction, expanding their development territory, and the number of rooms continued to rise, such as Marriott International's more than 1.5 million rooms and Hilton's hotel group's rooms exceeded 1.15 million by the end of the third quarter. Marriott, Hilton and Wyndham all added more than 10,000 new rooms in the third quarter.
3.2023Q3 International Hotel Group Greater China Performance: Far ahead" of the rest of the world, with a prominent role as a growth engine
In the third quarter, the international hotel groups were operating in various regions around the world, and Greater China was far ahead, becoming an important market for the improvement of the overall operating performance of each group.
Intercontinental: Group revenue per available room (RevPAR) increased by 10. in the third quarter compared to 20225%, of which the Americas market grew by 41%, and the Europe, Middle East, Asia and Africa (EMEAA) market grew by 159%, the Greater China market grew by 432%。
HiltonSystem-wide comparable revenue per available room (RevPAR) increased in group bookings, leisure and business travel, up 6 percent from the same period in 20228%, up from 11 in the same period in 20194%；During the quarter, the RevPar in the Asia Pacific region increased by 39% compared to the same period in 2022. The RevPAR in China increased by 38% compared to the same period in 2022.
Argo: China grew the strongest in the Asia-Pacific region, with RevPAR growing 44% year-on-year in the third quarter, surpassing 2019 levels.
Marriott: The RevPAR in Greater China recorded 87$31, a year-on-year increase of 474%;The OCC is 713%, a year-on-year increase of 145 percentage points; ADR is 122$4, an increase of 174%。Among them, the year-on-year growth of RevPAR and OCC in Greater China far exceeded that of other regions.
Wyndham: The overall RevPAR for the third quarter was 49$71, a year-on-year increase of 3%; The Revpar in Greater China is 18$13, a year-on-year increase of 28%.
Hyatt: In the third quarter, Hyatt's system-wide comparable hotel reported a RevPAR (average revenue per available room) of 145$4, an increase of 89%；RevPAR in Greater China grew by 56% year-on-year, with major events such as the Asian Games contributing to the performance.
2. Financial performance of domestic hotel groups in 2023Q3
1.2023Q3 domestic hotel group revenue and profit: The revenue of the 8 groups showed positive year-on-year growth, and the gradient difference in net profit was large
In the third quarter of 2023, thanks to the growth of consumption in the summer tourism season and travel demand in major business cities, the operating performance of domestic hotel groups has improved significantly: from the perspective of the eight companies that have announced their revenue data for the third quarter, the total revenue is about 15.3 billion yuan, of which more than 2 billion yuan includes Huazhu, Jinjiang and BTG, which are 628.8 billion yuan, 415.6 billion yuan, 230.3 billion yuan. The revenue of 8 groups showed positive growth year-on-year, of which 4 increased by more than 50%, specifically Atour 9312%, Huazhu 5363%, BTG 5276%, Junting 5023%。In addition, compared with international hotel groups, domestic hotel groups have seen a more significant increase in revenue.
In terms of net profit, from the analysis of the 8 companies that have announced net profit data, except for Huatian Hotel, the remaining 7 companies have achieved profitability, of which BTG Hotel has the highest year-on-year increase, with a year-on-year increase of 60949%, mainly due to the company's efforts to seize the opportunity of the peak sales season and improve hotel performance through multiple measures such as continuous product renewal and upgrading, technology empowerment and operational efficiency. The rest of the group, whose net profit increased by more than 100% year-on-year, also includes Green Hotel (294.com year-on-year).69%), Huazhu Group-S (loss of 7. in the same period of 20221.7 billion yuan, a year-on-year increase of 28647%), Jin Jiang Hotels (up 2. year-on-year8.4 billion yuan, a year-on-year increase of 16928%), Atour ATAT (increased by 1. year-on-year5.1 billion yuan, a year-on-year increase of 13445%). In response to the change in performance, Jin Jiang Hotels said that it was mainly due to the sharp rebound in the operation of its domestic hotels compared with the same period last year, the increase in fair value due to the extension of the franchise term, and the acquisition of lease compensation.
In terms of comprehensive revenue and net profit, Huazhu Group-S led the domestic hotel group with an absolute advantage in the third quarter, delivering strong operating performance. This is due to the support of China's summer vacation tourism season and the continued recovery of business tourism, while the internal factors are Huazhu's long-term adherence to the "lean growth" strategy.
2.Revenue of domestic hotel groups in the first three quarters of 2023: The revenue of 6 hotel groups in the first three quarters, including Huazhu, BTG, and Atour, exceeded that of 2022, with a clear trend of catching up with growth
Comparing the revenue data of domestic hotel groups from 2021 to the first three quarters of 2023, it can be seen that the revenue of six hotel groups, including Huazhu, BTG, Atour, Junting, Green, and Huatian, has exceeded that of the whole year of 2022, and the revenue of Jinling Hotel and Jin Jiang Hotel has also completed the whole year of 2022 respectively. 62%, the overall catch-up growth is obvious. The reasons are reflected in two aspects: first, since the beginning of 2023, the strong recovery of domestic tourism, the recovery of business travel and the strong demand for revenge and compensatory leisure and vacation tourism by residents have driven the overall operation of the hotel industry to recover significantly; Second, the base of operating performance in 2022 is low.
There is still a certain gap compared with the revenue data of the same period in 2019 before the epidemic, such as taking Jin Jiang Hotel as an example, the total revenue in the first three quarters of 2023 is 1096.2 billion yuan, compared with 112 in the same period of 2019800 million yuan, a difference of 3$1.8 billion; BTG Hotels' total revenue in the first three quarters of 2023 was 591.1 billion yuan, compared to 62 in the same period of 20193.1 billion yuan, a difference of 3200 million yuan.
3.2023Q3 domestic hotel group market operation performance: RevPAR increased by more than 30% year-on-year, and all operating indicators of Atour Group exceeded the same period in 2019
In the third quarter of 2023, driven by the summer tourism season, the core operating indicators of domestic hotel groups have improved significantly, such as taking the core indicator of hotel RevPAR as an example, the RevPAR of six hotel groups in the third quarter of Jinjiang, BTG, Huazhu, Junting, Atour and Green has increased by more than 30% year-on-year.
Jin Jiang Hotels: According to the disclosure of financial report data, the average room rate of all hotels in China in the third quarter of 2023 is 2656 yuan, the occupancy rate is 7167% and 190 Revpar36 yuan. Mid-range hotels have a Revpar of 21547 yuan, a year-on-year increase of 3330%；The budget hotel has a Revpar of 12946 yuan, a year-on-year increase of 5303%。
BTG Hotel: In the third quarter of 2023, all BTG Homeinn hotels Revpar was 185 yuan, an increase of 58 over the same period last year6%；The average house price was 258 yuan, an increase of 34 over the same period last year3%；The occupancy rate was 715%, up 109 percentage points.
Huazhu Group-S: In the third quarter, the average mixed RevPAR of Huazhu hotels in China was 278 yuan, an increase of 44% year-on-year and an increase of 29 compared with the same period in 201930%；ADR was 324 yuan, an increase of 27 year-on-year56%, an increase of 3224%；The occupancy rate is 859%, an increase of 9 year-on-year9 percentage points, 1 percentage point lower than the same period in 20198 percentage points.
SSAW Boutique Hotel: All operating indicators showed a growth trend, hitting a new high in the same period in history. During the reporting period, the average occupancy rate of the Company's directly operated hotels was 6979%, an increase of 883%, exceeding the level of the same period in 2019; The average room price was 530 yuan per room, an increase of 26 over the same period last year43%, an increase of 2461%；Revpar is 36989 yuan, an increase of 44 over the same period last year75%, an increase of 25 from 201924%。
Atour Group: The Group's RevPAR (Average Revenue from Rentable Rooms) was 424 yuan, a record high for the quarter and 118% of the same period in 2019. At the same time, Atour's ADR (average daily rate) and OCC (occupancy rate) also achieved rapid growth in the third quarter, with 495 yuan and 82 yuan respectively4%, both exceeding the level of the same period in 2019, achieving a strong recovery.
Green Hotel: The financial report revealed that the occupancy rate of the Q3 hotel was 812%, up from 71 in the same period last year1%;Revenue per available room (RevPAR) was RMB156, up 305%。
4.2023Q3 domestic hotel group market expansion performance: accelerate the pace of new store openings, scale jump and structural optimization at the same time
In the third quarter, major domestic hotel groups continued to expand their hotel scale, and management franchise and franchising remained the leading mode for their expansion and development. As of September 30, Huazhu, Jinjiang and Atour accounted for more than 90% of the managed franchise stores, in order. 12%。BTG Hotels' proportion of franchisees under management is slightly lower than that of the above three groups, at 8959%, approaching 90%, which is closely related to its implementation of the light management hotel expansion model with the characteristics of "small investment, high empowerment and fast return".
Jin Jiang Hotels: From July to September 2023, there will be 313 newly opened hotels, 116 hotels will be opened and withdrawn, and 197 hotels will be newly opened, of which 26 directly operated hotels will decrease and 223 franchised hotels will increase. As of September 30, 2023, the total number of hotels that have opened has reached 12,138, and the total number of hotel rooms that have opened has reached 1152332.
Huazhu Group-S: In the third quarter of 2023, the Group accelerated the opening of hotels, and the number of newly opened hotels reached 545, an increase of 28% year-on-year. As of September 30, 2023, there were 9,157 hotels in operation with 885756 rooms.
Atour Group: In terms of hotel scale, Atour Group gained the favor of more franchisees in the third quarter, and the hotel opening progress accelerated, with 81 new stores opened, helping to accelerate the implementation of the strategy of "China Experience, 2,000 Good Stores". As of the end of September this year, Atour Group's operating hotel network has reached 1,112; The number of hotels under development in the pipeline reached 577, an increase of more than 60% year-on-year.
BTG Hotel: In the third quarter of 2023, the company opened 337 new stores, including 4 directly operated stores and 333 franchised stores. By brand type: 47 are economic, 94 are medium and high-end, and 196 are lightly managed.
While expanding their scale, in the third quarter, domestic hotel groups represented by BTG, Jin Jiang and Huazhu also focused on optimizing their structure and focusing on brand upgrading, and the proportion of mid-range and mid-to-high-end hotels increased.
BTG HotelWe continued to promote the iterative upgrading of mid-to-high-end brands, cooperated with Hyatt to establish UrCoRe, and launched Homeinn Selection 4., which focuses on British fashion features0 iteration of products to meet the younger consumer group, as of the end of the third quarter, the number of high-end hotels accounted for 2650%, an increase of 06 percentage points.
Jin Jiang HotelAs of the end of the third quarter, the proportion of mid-range hotels and above in the total number of hotels opened increased to 5754%, accounting for only 39 in the same period in 201943%。
HuazhuIn the third quarter, the number of mid-to-high-end hotels in operation increased by 18% year-on-year to 605, and the number of mid-to-high-end hotels to open reached 357, a year-on-year growth rate of 35% and a quarter-on-quarter increase of 13%.
3. Trend outlook
According to the "China Hotel Market Prosperity Report for the Fourth Quarter of 2023" released by Horwath: in the fourth quarter, affected by multiple factors such as the uncertain international political environment and the downward pressure of the local and global economy, the market's expectations for the hotel market were more rational and cautious, with a prosperity index of 64, down 9 index points from the third quarter.
According to the WTM 2023 Global Leisure Tourism Report, the number of international trips worldwide is expected to exceed 12 in 2023600 million passengers, 86% of 2019 levels. And the recovery in the leisure travel sector has been stronger than that of business travel. Report**The outlook for the global leisure tourism market in 2024 is optimistic, and China is expected to become the world's largest inbound leisure tourism destination in 2024 in terms of tourism consumption. As for the outlook for the next ten years, the report points out that ten years later, in 2033, China is expected to be the world's largest source of outbound leisure tourism, and China's outbound tourism consumption can reach about twice that of the United States. It can be seen that from the perspective of the global scope and the medium and long term, the Chinese market will be an important engine leading the development of the world tourism economy.
To sum up, looking forward to the fourth quarter and 2024, the low base effect brought about by the epidemic will gradually weaken, and the revenge tourism consumption will also return to rationality, and major hotel groups will face huge operational challenges and pressures. However, in the long run, people's pursuit of a better life will remain unchanged, the population of the traveling class will gradually expand, global and domestic business travel exchanges will become more frequent, and the long-term situation of the industry development will be generally good, which will bring new opportunities for the long-term development of hotel group enterprises.