“We opened 528 stores in the first three quarters of this year，Mid-to-high-end accounts for 60%。More than 650 stores will be opened next year，The proportion of mid-to-high-end products will be even higher。”The Huazhu 188bet game Group (HTHT held two months ago.US) financial report conference，Chairman Li Qi said to investors。

Maybe you are not familiar with the name Huazhu 188bet game，But if we talk about Hanting，You should suddenly realize it。

November 2012，Hanting 188bet game Group, which is listed on the US stock market, announced that it will change its name to Huazhu 188bet game Group。

As of now，In addition to budget 188bet game chain brands such as Hanting and Hi Inn，Huazhu also owns All Seasons、Starway and other mid-range brands，Ibis authorized to operate from the French Accor Group、Mercure、Novotel，And the newly acquired Orange 188bet game。

Picture source: Huazhu 188bet game Annual Report

If you look at the stock price of Huazhu 188bet game，You will find that it was around the time of the name change at the end of 2012，This company started a tenfold growth path in five years。

But the main rise 188bet game stock price，Actually started in 2015，And in 2017，The increase is accelerating again，Up to 180% for the whole year。

Image source: Youyu Stock App

So, what happened in 2015?

Open the company’s RevPAR trend chart to see it at a glance，This year is a turning point for the company’s RevPAR to turn upward。(Note: RevPAR，Abbreviation for Revenue Per Available Room，That is, the average actual operating revenue generated per available room，The calculation formula is average occupancy rate * average room price，Is the core business indicator of the 188bet game industry)

For 188bet game groups，This means revenue growth for the company，Already opened a new store from relying on，Transitioning to the stage of single store revenue growth。

Source: Huazhu 188bet game

If you broaden your horizons to the entire industry，Go and see the top three 188bet game groups in China，will find that their RevPAR bottoms out at almost the same time，Joining hands into an upward cycle。

Source: CICC Research

Obviously，Not just a Huazhu family，But the entire 188bet game industry in China has ushered in a golden age since then。

“Economic chain is no longer the focus of our business”

The interesting thing is，Huazhu was originally established with Hanting as the main body，Now the company is talking about the development of this basic brand，But often brush 188bet game off。

Early this century，The hottest topic in the 188bet game industry is the explosive growth of economic chain hotels。From Hanting to Home Inn，From Seven Days to Jinjiang Inn，Standardized room、Approachable prices and convenient joining methods，Let these chain brands begin to quickly replace traditional guest houses and small hotels，All over the country。

2005 to 2016，China’s budget 188bet game chains expanded from 500 to 22,000，A full 44 times increase。As of the end of 2015，The number of budget 188bet game rooms nationwide exceeds 1.86 million，Accounting for nearly 60% of the entire 188bet game market。

Source: National Bureau of Statistics, Huatai Securities

However, if you look carefully at the picture above，You will find that the growth of budget 188bet game chains declined significantly in 2016。And the year before，Kicky 188bet game groups are beginning to smell changes in the market。

According to Home Inns 188bet game Group (now delisted from the US stock market and acquired by BTG Hotels (600258.SH)’s 2015 Semi-annual Report，Homeinn, which started out as a budget 188bet game, emphasized for the first time that it will develop its efforts in the mid-to-high end，And some results have been achieved。

Huazhu 188bet game Group CEO Zhang Min said simply，70% of Huazhu’s pre-tax profit growth in 2015 was contributed by the Quanji brand。

And all seasons，It is a mid-range 188bet game brand with an average room price of more than 300 yuan。

Just two years later, the concept of mid-range 188bet game has exploded.

188bet game giants who previously vowed to spread low-priced and standardized 188bet game rooms across the country，One after another held up the banner of brand upgrade。

From the perspective of development speed，Whether it is Huazhu or Homeinns，In recent years, the expansion of mid-to-high-end 188bet game brands has been significantly faster than that of budget brands。

Note: Jinjiang and BTG calculated data after mergers and acquisitions in 2016。Data source: Regular reports of listed companies, compiled by Yunfeng Financial

The same trend also exists from the perspective of external mergers and acquisitions and brand building。

For example, Huazhu acquires Orange 188bet game，Jinjiang acquires Vienna，All are heavily deployed in mid-range hotels。In addition，Jinjiang continues to create new brands such as James Coffetel and Lavande that are more like boutique hotels，Home Inns is busy upgrading the original low-end Home Inn chain to Home Inn Select。

What is a mid-range 188bet game?

In the view of some 188bet game industry insiders，Mid-range hotels are a false proposition。

Clear positioning of high-end 188bet game，Provides a luxurious stay experience，Firmly grasp the tastes and preferences of high-end consumer groups；Budget 188bet game provide cost-effective accommodation for the public，Have the trust and loyalty of ordinary consumers。

The current trend of mid-range 188bet game，In fact, as people go out and have higher requirements for living quality，Budget 188bet game are forced to start transformation and upgrading。

But in fact, this statement is only half correct.

Just like ten years ago, budget hotels became popular all over the world with the sign of "luxury guest house"，Mid-range hotels have indeed emerged riding on the wave of “consumption upgrading”。But except for the upgraded version of the budget 188bet game，It is also possible that high-end hotels will put down their pretensions and become more people-friendly。

Take the Crystal Orange 188bet game acquired by Huazhu in February this year as an example，The focus is to create the "economic version of high-end hotels"。

Compared with those "upgraded versions of budget hotels"，Orange 188bet game is more thoughtful in the design of many details。For example, the oranges placed on the bed or beside the bed as soon as you enter the door，Warm lighting effects and minimalist style decoration。

“The fashion pursued by Orange 188bet game is not luxury，It is a cultural atmosphere based on convenience and comfort。This includes the orange lobby，Corridor decorated with watercolors and mirrors，Quiet、Pure white bathroom，Soft music filling the corridor。”

——Orange 188bet game’s self-introduction

It can be seen from these text descriptions and even 188bet game pictures，What these budget high-end hotels want to cater to，Is the new generation of main consumer——70、Post-80s and even 90s。

They were working just now、The generation who are still in school or even used express 188bet game when traveling with their families when they were children，Now they are tired of those same rooms and slightly cheap decoration。

They want to enjoy，Enjoy it immediately。If you spend more 1、200 yuan can have a better night，They will happily ignore Hanting and Home Inns，Go straight to the mid-range 188bet game with a slightly awkward name。

“Early budget hotels represented a fashion、A fashion，Investor also lives here，Senior white-collar workers also live here。These people are gone today，There are fewer...young people now have strong spending power，If comfortable enough，He won’t care if your 188bet game price is tens of dollars more，Even 100 yuan。But in a budget 188bet game chain，It’s a big deal if a room goes up by more than ten or twenty yuan。”

——Huazhu CEO Ji Qi&Atour Lightju Product Director Lu Wei

Meanwhile，International 188bet game chain groups that originally focused on high-end business and vacation have not let go of this trend。

For example, Shangri-La Group originally focused on high-end business hotels，In May this year, a 188bet game Jen opened in the Guomao District of Beijing, where there are many luxury hotels - and this is a mid-range 188bet game chain brand targeting young customers。

Picture source: Jen 188bet game official website

“We don’t want guests to come to the 188bet game just to get some sleep。" said Wei Kaifu, general manager of the New China World 188bet game。The 188bet game’s target customer group is “those with a Millennial mindset” who have growing spending power，A 188bet game is more than just a place to sleep，It is still a place where young people live，A place to socialize，A place for entertainment。

The spacious and bright co-working space and craft beer bar are open to the public，Give 188bet game guests and locals more opportunities to communicate，Integrate into the local life。

Why a mid-range 188bet game?

In fact, mid-range 188bet game have been popular abroad for a long time.

In the United States，High-end、The number of rooms in mid-range and budget 188bet game shows an olive shape，The ratio is about 3:5:2。

In the European 188bet game market，The ratio of the number of rooms in mid-price hotels to low-price hotels is 73:27。

Data source: Yingdie Consulting

And in China，Current high-end、The number of guest rooms in mid-range and budget 188bet game is still in a pyramid shape，The ratio is 1:3:6。

Data source: Yingdie Consulting

In other words，Chinese people’s taste in 188bet game is actually related to food、The upgrade paths for consumer goods such as cars are the same，Also pursuing the path that the European and American markets have taken，Ushering in an era of using more money in exchange for better enjoyment。

This is undoubtedly great news for the 188bet game industry.

Because from the business data，Whether it is RevPAR or franchisee’s profitability，Mid-range 188bet game are much higher than budget chain 188bet game。Although it cannot be seen everywhere in numbers like before，But it can carry out refined management，Improve the profitability of a single store。

Source: Annual reports of the three major 188bet game groups, compiled by Yunfeng Financial

What’s more，China’s second- and third-tier cities that are rapidly rising，Opened new markets for 188bet game giants，There is still a lot of room for brand upgrade。

Who is in charge of China’s 188bet game industry?

Except for high-end hotels, overseas 188bet game giants still have a fighting chance，After a series of vertical and horizontal combinations，At present, domestic mid-range and budget hotels have formed Jinjiang、The three-legged trend of Homeinn and Huazhu in Boutique。

In just two years，The share of the domestic “Big Three” 188bet game market segments has increased from 34.3% quickly increased to 44.1%，Close to US concentration levels。

Source: Yingdie Consulting

Judging from the current layout of the three giants，As of the end of the third quarter of 2017，Jinjiang has the largest number of 188bet game，The proportion of mid- to high-end 188bet game is also the highest。Although the number of Huazhu 188bet game is similar to that of BTG Home Inns，But Huazhu’s proportion of mid- to high-end 188bet game is significantly higher than that of BTG Homeinns。

Source: Regular reports of listed companies, compiled by Yunfeng Financial

But judging from the market value and stock price trend，The market seems to have chosen the future industry hegemon - not Beijing and Shanghai National Teams Beijing and Jinjiang respectively，But Huazhu performed last 188bet game acquisition war。

Note: Data is as of 2017.12.Close on the 31st，Huazhu’s US dollar market value is 1:6.5% off。Source: Wind，Yunfeng Financial Compilation

This conclusion seems to be contrary to the proportion of mid-range 188bet game，But obviously，The market pays more attention to quality rather than quantity。

Despite the massive acquisition of the Louvre in France、PLTAO、After the three major 188bet game groups in Vienna，Jinjiang quickly became the largest number of guest rooms in China、The 188bet game group with the highest proportion of mid-range hotels，But due to many brands，There is no synergy between them，There is also a lack of hierarchical planning，The integration work looks to be a long way to go。

According to Galen, founder of 188bet game Property Rights NetworkMoore said，Whether it is the acquisition of Plateno or Vienna，The effect after the acquisition may not be as good as imagined，“Vienna had a high debt ratio before the acquisition，Plateno’s net profit has been very low when it was first listed in the United States。In this case，The rapid development of these two asset-light companies has resulted in poor profitability，It is possible for Jinjiang to slow down its pace。”

The Home Inn acquired by BTG previously focused on economic chain 188bet game，Insufficient layout in mid-range 188bet game，The Home Inn Select brand cannot give consumers the feeling of upgrading。

In this competition，Huazhu is currently the de facto leader。Whether it is a complete range of brands，Can be suitable for people with different consumption and different regions，It is still far ahead in business data - the operating gross profit margin of All Seasons 188bet game is the highest，The acquired Crystal Orange has a very high RevPAR level，Same-store RevPAR increased by 14% in the third quarter.5% to 367 yuan。It can be said，It is the quality advantage of mid-range hotels that builds market confidence in them。

Those who upgrade their consumption will win the world

Just like the once best-selling Chery QQ and Great Wall SUV in the Chinese automobile industry，has quietly become the same as Geely Emgrand and Mercedes-Benz SUV，In fact, Hanting and Home Inn in the 188bet game industry have never really disappeared，Just a makeover，Became an all season and orange 188bet game。

Tourists traveling during the short and long holidays continue to hit new highs，When people no longer crowd into small hotels to eat instant noodles just to visit two more attractions，China’s 188bet game industry is riding on the rise of mid-range hotels to achieve phoenix nirvana，The statement that a decade of golden age has begun is not a lie。

There are investment opportunities in everything from food, clothing, housing and transportation，In this era of consumption upgrade，Wish to pay more attention to the industries that are consumed every day，Maybe one of them，The next Huazhu is waiting for you。

*thisWen LaiSource: Yunfeng Finance, original title: "The disappeared Hanting and Rujia》.