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January 2014 Economic Report on China’s Budget Hotel Industry Development

Published: 2026-11-08 👁 100 views
Last updated 2026-11-08 — I. Overview of the Budget Hotel Industry in January 1. Latest Industry Developments
I. Overview of the Budget Hotel Industry in January

1. Latest Industry Developments

(1) By the end of 2013, Huazhu had a total of 1,341 hotels under its brand, of which 777 were franchised—over half. There were also 455 hotels in preparation, 379 of which were franchised. At the same time, Huazhu established a “management franchise” model to strengthen oversight of franchisees and enhance guest experience. It also partnered with financial institutions to create an internal financing platform, advancing brand management and expanding franchise locations.[Details]

(2) Zhejiang Huida Yizhan Network Co., Ltd., which provides internet services to over 4,500 hotels nationwide, suffered a security breach that led to the leakage of personal information of 20 million guests who stayed at its partner hotels between the second half of 2010 and the first half of 2013. In January, victims of the data leak sued Hanting Starry (Shanghai) Hotel Management Co., Ltd. and Zhejiang Huida Yizhan Network Co., Ltd., seeking compensation of 200,000 yuan.[Details]

(3) On January 15, 2014, Jinjiang Inn officially signed its fourth overseas expansion project—the Indonesia project. This marks another major step in Jinjiang Inn’s international development, following projects in the Philippines, France, and South Korea.[Details]

(4) Last year, the main customers booking New Year’s Eve dinners were ordinary families. Budget hotels became the top choice for many citizens. Reservations at numerous budget hotels exceeded 70%, with some hotels fully booked a month in advance.[Details]

II. Analysis of Budget Hotel Brand Influence in January

1. Top 20 Budget Hotel Brands Ranking

Brand Analysis


Huang Qiquan of Huazhu revealed that due to the unique nature of the hotel industry, the physical form of hotels will not disappear. Relying solely on online platforms to drive offline services presents many challenges, and he believes the future trend will involve offline services driving online optimization. Currently, Huazhu is experimenting with an O2O2O model—sharing offline experiences online and then feeding insights back offline.


Huang Qiquan proposed the O2O2O model mainly in response to the intense competition and rapid reshuffling in the internet and mobile internet sectors, as well as the short lifecycle of enterprises. Amid these challenges, traditional businesses still have unique advantages—but they must build those industries with an internet mindset.


Another challenge is that as apps become more widespread, OTAs continue to innovate by creating comprehensive service platforms as well as mobile portals. In such an environment, standalone hotel brand apps are unlikely to remain on users’ phones. The proportion of OTA services will continue to rise, so hotels must take appropriate measures to meet this challenge.


Every revolution in information technology brings boundless possibilities to the business world, but also triggers fears of transformation crises and being left behind. Especially for service-oriented products like hotels, where the quality difference is hard to judge and firsthand experience is limited, the O2O2O model offers distinct advantages. Locations with frequent customer interaction can gather the most personalized needs, and when this information is shared online, it simplifies communication and makes the experience smoother and more enjoyable.


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