"Within the next 10 years，(Conservative estimate) China’s middle class will increase to 300 million people，The demand for domestic mid-range hotels will be greater。Therefore，The next 10 years will be a golden era for the development of China’s 188bet game industry，Especially in the mid-range 188bet game sector。” Sun Jian, Chief Development Officer of InterContinental Hotels Group Greater China said。

After bidding farewell to the "golden age" of high-star hotels and budget 188bet game chains，The instability of the economic environment and changes in the political environment have caused the consequences of excessive expansion of high-star hotels to appear；At the same time，After the gradual upgrading of residents’ consumption structure, traditional budget hotels are increasingly showing signs of being unable to adapt to market changes。

Compared to budget hotels, it is difficult to increase room prices and can only generally obtain investment income by lowering room prices and increasing occupancy rates，Mid-range hotels rely on cost-effective advantages that high-star hotels do not have，At the same time, it has the advantages of upgraded products and brand recognition that budget hotels do not have，Rising rapidly and becoming a new investment hotspot in China’s 188bet game market。

As local 188bet game brands increase their investment in mid-range 188bet game business，Foreign 188bet game brands are also unable to restrain themselves and are seeking to “divide” China’s mid-range 188bet game market, which has considerable volume and demand。

However，After nearly 10 years of development，Number of jointly opened mid-range 188bet game、1 for occupancy rate.0 era has passed，The next "golden age"，Need to form a quality scale through operations，This puts forward higher requirements on cost and quality control。

Mid-range 188bet game have become an investment hotspot

2000 to 2009 is the golden period for the development of domestic economy hotels，Spawned a large number of 188bet game brands and franchisees。After 2013，Affected by the economic and political macro environment，The revenue of the entire 188bet game industry continues to decrease，Profits are getting thinner。Budget hotels positioned as mid- to low-end due to rising operating costs，Revenue and occupancy decline、Facing a serious crisis due to serious homogeneity and other factors，Transforming into a mid-range 188bet game has become the last life-saving straw for budget hotels in crisis。

Meanwhile，High-end consumption sinks，Mid-range mass consumption--in the current transformation of consumption structure，The mid-range 188bet game market is rising rapidly。The entire Chinese 188bet game industry is changing from a "dumbbell-shaped" pattern with rapid growth at both high-end and budget hotels to a "spindle-shaped" pattern，Entering mid-range hotels is undoubtedly the general trend。

Many years ago，McKinsey predicted，By 2022，The number of China’s middle class will grow to 2.7.1 billion households。And the future，The potential consumer group in China’s mid-range 188bet game market is expected to continue to expand at an annual growth rate of about 10%。The "Prospects of Chinese Consumers in 2030" report released by the British Economist Intelligence Unit also shows，If measured by income level，2030，About three-quarters of Chinese people in China may be defined as middle-income earners。

From the "2018 China 188bet game Chain Development and Investment Report" released by the China 188bet game Association、"2019 China 188bet game Chain Development and Investment Report" shows，Different from the slowdown in the development of budget hotels，The proportion of the middle class has increased、Consumption upgrade and high-end transfer，Promote demand growth for mid-range hotels。At the same time，Operation status of major brands in the mid-range 188bet game market、Good growth momentum。

On the demand side，With the post-80s generation、The young generation born in the 1990s has gradually become the main force of consumption，“High brand loyalty、Pursue healthy life、Family weekend trip..."More and more middle class now，On top of basic 188bet game accommodation needs，More willing to pay for Life style。The middle class is rapidly rising in “consumption upgrading”，It will provide a huge source of potential customers for the development of major industries in China, including the 188bet game industry。

Han Ming, President of the China 188bet game Association, pointed out when analyzing the development trends of the domestic 188bet game industry in 2019，Mid-range hotels will become one of the main consumption growth points。

From the supply side，Current high-end in China、The number of rooms in mid-range and budget hotels forms a pyramid，Budget hotels still dominate the market。Looking at the 188bet game market in European and American countries，High-end、The number of rooms in mid-range and budget hotels forms an olive shape，Mid-range and mid- to high-end hotels dominate the market。Benchmarking mature 188bet game markets in Europe and the United States，China’s mid-range 188bet game market still has huge room for development。

According to a report by China Culture News in 2018，In the United States，High-end、The ratio of the number of rooms in mid-range and budget hotels is approximately 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。Statistical data from STR and Bernstein analysis released in May 2019 show，In guests per million people，The number of mid- to high-end 188bet game rooms per capita in the United States is 15 times that of China。

It is worth mentioning，Due to slowdown in macroeconomic growth，Real estate control policy is too tight，The operating pressure of the entire 188bet game industry has doubled，Investors are becoming more cautious about 188bet game development，The focus has gradually shifted from the development of high-end hotels to mid-range hotels with stronger return on investment。

Under the combined effect of demand side and supply side，The 188bet game contract market has seen a "pattern" change，The mid-range 188bet game market has reached its peak of development。Wang Huiyang, CEO of Huamei Consulting Group, thinks，Mid-range hotels will become a new investment hotspot in the market。

All forces compete for each other

In the past two years, competition in the mid-range 188bet game market has become increasingly fierce.

On the one hand，Whether it is Huazhu、Home Inn、Local budget 188bet game groups like Plateno，Or a new force like Yaduo，They are all accelerating their expansion into the mid-range 188bet game market。For example，November 2010，Homeinns creates mid-range 188bet game brand Heyi；November 2012，Huazhu 188bet game Group has invested a lot of resources in creating the mid-range 188bet game brand All Seasons；2013，More domestic 188bet game brands focus on the mid-range 188bet game market。

On the other hand，Foreign 188bet game groups that once focused on high-end brands have also targeted and "sinked" into the mid-range 188bet game market，such as Intercontinental、Marriott、Hilton、Accor、Hyatt, etc.，Accelerate the expansion of its mid-range brands in China through various channels。

188bet game as an offline resource，It is crucial to seize the advantageous position。If the "entrusted management model" was the first choice for foreign hotels to enter the Chinese market，With increasing investment and operation experience，Local 188bet game owners hope to further enhance their product image with the help of international brands，Also hopes to retain greater autonomy in daily operations - this lays the foundation for the in-depth development of the franchise model of foreign 188bet game brands in China。

May 2016，Holiday Inn Express, a mid-range select-service brand under InterContinental Hotels Group, is testing the waters of franchising in the Chinese market - handing over the operational control of the 188bet game to the owners，The brand has passed the brand audit and other quality control systems，Supervise whether the 188bet game’s hardware and software comply with brand standards。November 2017，InterContinental Hotels Group expands its franchise model to higher-end full-service brands Holiday Inn and Crowne Plaza。

Same in 2016，Marriott International Group cooperates with Dongcheng 188bet game，The "Fairfield" 188bet game brand that launched the franchise model，Dongcheng aims to develop 140 Fairfield hotels within five years，100 of them are expected to open before 2021；The number of Ramada hotels under the Wyndham 188bet game Group’s Ramada brand currently open in China has exceeded 90，All adopt the franchise cooperation model；Hilton and Plateno Group cooperate to develop the mid-to-high-end brand "Hampton by Hilton"，Plateno is fully responsible for the market operation of Hampton Inn in China，Planned within the next 10-15 years，Hilton and Plateno Group plan to cooperate to launch four to five hundred Hampton hotels；The Accor Group chose to enter into strategic cooperation with Huazhu，Consolidate its mid-to-high-end brand Novotel、Mercure、Ibis Styles and other brands are handed over to Huazhu for operation。

As one of the largest franchisees in the global 188bet game industry，InterContinental Hotels Group has more than 5,600 open hotels around the world，80% adopt the franchise model。InterContinental Hotels Group’s 2018 financial report data shows，Among the 142 hotels it signed contracts with in China throughout the year，80 are franchise models。First half of 2019，Among the 68 projects signed by InterContinental Hotels Group in China，There are 50 franchise models；As of June 2019，InterContinental Hotels Group has signed a total of 204 franchise projects in China。

The franchise model also promotes the high-quality growth of InterContinental Hotels Group in Greater China，And has become one of the international 188bet game management companies with the leading development speed and scale in China。

InterContinental Hotels Group’s financial report data for the first half of 2019 just released in early August this year，The operating profit of the entire Greater China region increased by 32%，Contracted 188bet game、The number of newly opened hotels has reached a record high。Among them，22,000 newly signed 188bet game rooms，The number of newly opened 188bet game rooms is 13,000。

The core of a 188bet game is its accommodation product，Providing consumers with a comfortable accommodation experience is crucial for mid-range hotels，Need to form a quality scale through operations，This puts forward higher requirements for the 188bet game’s cost and quality control。And in franchise mode，The owner has a greater say in 188bet game operations，How to balance the interests and demands of both parties？

Qiu You, Managing Director of Holiday Inn Express Greater China of InterContinental Hotels Group, told reporters，First，Owners must agree with the brand’s philosophy，Respect the development of the brand。Secondly，While building，Think of every possible way to design the product to be more up-to-date、More cutting-edge、More quality，And reduce the owner’s construction costs as much as possible。Moreover，Under the "Franchise +" model tailored for the Chinese market，The group will assign additional general managers to stores，Let franchisees learn and understand how to operate and manage hotels。Also，We will also train 188bet game staff，Monitor guest satisfaction，Carry out regular quality inspections，To ensure consistent brand guest experience standards。

"From the General Manager，To Sales Director，To the Guest Services Director，The entire 188bet game’s core management team must undergo our strict training and assessment。Failed one assessment，A second chance to take the assessment will be given。If you still fail the second assessment，We will advise the owner to seriously consider whether they are a suitable candidate for (this position)。" Qiu You said。

When talking about why we chose the franchise model to join Holiday Inn Express under the InterContinental 188bet game Group，Guo Shuyuan, owner of Holiday Inn Express Nanqujiang in Xi’an said，As an investor，He has to consider cost recovery and long-term benefits。In other words，188bet game must maintain continuity、Stable profit，Rather than how much profit can be made in a short period of time。

Guo Shuyuan told reporters，Intercontinental’s strict standards are also what he wants。In his opinion，Strictness is a good thing，Because only strictly serve、Brand well，Only the subsequent development of the 188bet game will be sustainable。

Guo Shuyuan gives an example，“After the group’s unified training，Our greeters and waiters have significantly improved in professionalism，188bet game not have a stubborn temper、Don’t like to talk、When encountering problems, you 188bet game bring your emotions to work, etc.。Also，There is a saying in Holiday Inn Express that "one specialty can do many things"，Give employees comprehensive training，Our employees can be excellent greeters at the front desk，Able to serve as a room attendant in guest rooms，You can also work as a waiter in a restaurant。”

From opening on April 30, 2018 to the end of the same year，The occupancy rate of hotels operated by Guo Shuyuan is above 50% (including July、The 188bet game was fully booked for many days in August)。And in 2019，So far，The conservative estimate of occupancy rate is above 60%，Showing a steady increasing trend。In terms of housing prices，Compared with the opening last year，House prices have been increased by 30% this year。"During peak season，It will be more difficult for consumers to book a room in our 188bet game。There are many competitors of the same grade and brand around me who are better positioned than me，But their performance so far is not as good as mine。”

Is the franchise model ushering 188bet game "golden age"?

Actually，The franchise model is very popular abroad，has also made great contributions to the global expansion of many 188bet game groups。Data display from the statistics of Horwath International Consulting China Affairs Office，The number of new rooms added to the market in France in 2018，93% signed a franchise，Shows the country’s 188bet game owners’ confidence in franchise development。

If you say，Facing the current oversupply in China’s 188bet game market、Overheated investment、Problems such as slow reporting，The completely entrusted management model can no longer keep up with the pace of the market，Then "flexible charging" and other risk sharing、The win-win franchise model of revenue sharing is more likely to be recognized by more and more Chinese owners。

Statistical data from Horwath International Consulting China Affairs Office，In the Chinese 188bet game market，Franchise model accounted for only 11% 5 years ago，It has jumped to more than 60% in the past 2 years。

Previously，Li Lizeng, Vice President of 188bet game Business Development China of Marriott International said，2018 or longer in the future，Franchising will gradually increase its proportion in China，So much so that the number of franchised hotels will exceed the number of entrusted hotels。

Zhao Huanyan, chief knowledge officer of Huamei 188bet game Consulting Agency, also said，The franchise model jointly chosen by owners and management companies will become a trend - owners can reduce the expectation of paying management fees，The 188bet game management company can also ensure that the franchise fee is collected regardless of drought or flood。Zhao Huanyan’s prediction，The proportion of franchise models in China’s 188bet game industry will gradually increase in the future，The proportion of entrusted management mode will gradually decrease。

According to data from Accenture，Calculated based on the number of rooms，24% of China’s 188bet game industry in 2018 was chain hotels，76% are independent hotels；71% of the 188bet game industry in the United States is chain hotels，26% are independent hotels。

“There will be two trends in China’s 188bet game industry in the future，The first trend is from single entity to chain，The second trend is from independent operations to franchising。"Sun Jian said，“InterContinental Hotels Group relied on the entrusted management model for the first 30 years of its development in China，The next 30 years will rely on the franchise model。”

Everything is to win a higher return on investment！However，The 188bet game industry is an industry that requires long-term accumulation，Given that the golden development period of mid-range hotels is far from coming，This wave of market may last longer than the previous development cycle of budget hotels。

Therefore，How flexible is the brand?、Whether the return on investment can satisfy the owner、Is the performance of various data after the cooperation between the owner and the brand company good or even excellent... Can the franchise model work?？How fast is it developing？The final say depends on the 188bet game。

*Source of this article: Economic ObserverNet, author: Deng Jun, original title: "In the next 10 years, China’s middle class will increase to 300 million people, and mid-range 188bet game will usher in a golden age？》