1. Most one-,two-and three-star hotels and some social hotels have been replaced by budget hotels.

According to statistics from authoritative departments, in recent years, the room occupancy rate of domestic star-rated hotels is around 60%, and its gross profit margin is around 20%, and hotels below three stars have suffered serious losses.

In recent five years, budget hotels have rapidly occupied the market in first-and second-tier cities at an annual opening rate of more than 100%, and will rapidly expand to third-and fourth-tier cities in the next few years. Among them, there are not only the rapid expansion of national brands, but also the influx of regional brands and the transformation of a large number of star-rated hotels into economy hotels. The average rental rate is above 80%, and it is as high as 95% on holidays. Its gross profit margin can reach 40% or even more than 50%, and it is still attracting the fervent investment desire of capital.

According to the 2009 China Economy Hotel Survey Report, there are more than 4,000 economy hotels in China, but they still only account for 29% of all star-rated hotels in China (about/kloc-0.4 million, excluding a large number of social hotels). Experts predict that there will be more than 10000 budget hotels in China by 2020, accounting for about 70% of the hotels in the market. China budget hotels are in the initial stage of rapid development, and have great development potential, and will become the main force in the hotel industry market in China.

The fundamental reason behind this trend is that people's consumption consciousness is developing towards calmness, maturity, consumption difference and personality difference. They no longer pursue luxurious, high-priced and well-equipped high-star hotels, but increasingly favor economical hotels with affordable prices, clean sanitation, friendly service, comfort and speed.

Second, most single or small chain economy hotels are integrated by national chain brands.

National chain brands have stronger brands, unified quality and service standards, more professional management and more outlets, which undoubtedly have obvious competitive advantages.

Since 2007, with the gradual intensification of competition, especially the increase of cost and the decrease of occupancy rate, single or small chain economy hotels are facing increasing pressure, and their competitive weakness is becoming more and more obvious, which gradually widens the gap with the occupancy rate and average house price of national chain brands. In the next 5- 10 years, most single or small budget hotels will be replaced or merged by national chain hotels. At present, the top 10 budget hotels only account for 38% of the market share of domestic budget hotels, and this proportion will increase to over 80%.

Third, the advantages of international chain brands over local brands will become more and more obvious.

With the rapid rise of China, the convening of the 2008 Beijing Olympic Games and the 20 10 Shanghai World Expo, and the increasing opening of the China market, China's tourism industry will develop at a high speed in the next 10-20 years and attract a large number of foreign tourists. At the same time, domestic tourism consumption will grow and upgrade rapidly, and consumers' quality and service standards for budget hotels will be improved.

After adapting to the China market, the advantages of international chain brands with international quality standards and service standards, international loyal consumers, more advanced business concepts, more professional management capabilities and stronger financial strength will become more and more obvious compared with domestic brands.

Although local brands with flexible and quick response start faster, they often lack stamina and their competitive disadvantages will gradually emerge-the current pattern of leading the economy hotel market with local brands will be changed. Many local brands will face the great test of continuous survival, and even face the fate of being reshuffled.

Four, the franchise mode will surpass the direct mode and become the mainstream of economic chain.

Throughout the history of the great development of foreign budget hotels, the track of franchise chain operation is the best way to succeed in the development of hotels in the world. More than half of the total number of hotels in developed countries such as Europe and America are franchise chain management models.

The chain operation of budget hotels is the inevitable result of the development of two groups of contradictions: first, the spatial limitation of hotel sales and the dispersion of consumers; Second, the contradiction between the hotel's pursuit of economies of scale and the weakness of individual hotels.

In fact, these trends have been confirmed in mature markets. The American hotel market has experienced a similar process in the past 30 years. The ratio of budget hotels to all star-rated hotels in the American market is now 7: 3, and more than 80% of budget hotels are occupied by former 10 chain brands. In the process of this industry change, Super 8 hotels in the United States, which focus on franchise chains, have experienced a glorious course from opening the first budget hotel to becoming the leader of the budget hotel industry.