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China 2016: CATEGORIES IN BRIEF | Hotels

BUDGET BRANDS PRESSURED, WHILE CATEGORY VALUE GROW 

The hotel category grew 11 percent in value in the BrandZTM Top 100 Most Valuable Chinese Brands 2016. The result improved on the flat year-on-year change in the last edition of the BrandZTM China 100.

Both local Chinese brands and international brands, well established in the larger cities, competed for tourism business. But for first nine months of 2015, inbound tourism from overseas markets declined 1.1 percent to almost 19 million visitors, according to the China National Tourism Administration (CNTA).

In addition, Chinese consumers did not lack accommodation choice. Over 11,000 star-rated hotels operated in China at the end of the third quarter of 2015, according to the CNTA. And for those looking for savings beyond budget- priced hotels, peer-to-peer services like Airbnb o ered another option.

Two of the three hotel brands in the BrandZTM China Top 100, Hanting and Home Inn, are well represented in the budget segment, although both brands have expanded rapidly and broadened their portfolios of sub- brands to serve broad segments of the market. Both Hanting and Home Inn increased 3 percent in brand value.

At the end of 2015, Home Inn, which operates around 2,790 hotels in 346 Chinese cities, under several sub- brands, announced plans to merge with BTG Hotels, which owns or manages several hotel brands and other tourism facilities.

Part of a group that operates over 3,000 hotels worldwide, Jinjiang Inn, the third hotel brand in the BrandZTM China Top 100, benefits from both inbound and outbound tourism. The number of Chinese traveling abroad increased 12.1 percent during the first half of 2015, according to the China Tourism Research Institute. Jinjiang Inn increased 47 percent in brand value.