At the end of this year, the editor summarized “Top10 hot events in China’s hotel industry, 2014”to serve readers.

The developmentof the China’s hotel market was not optimistic in 2013. Many hoteliers hoped 2014 could be a turning point. What really happened in 2014? For China’s hotel industry, challenge and opportunity coexisted in this year. Back in 2014, how many hot events happened in 2014? At the end of this year, the editor summarized “Top10 hot events in China’s hotel industry, 2014”to serve readers.

Top1. Chinese enterprises in overseas mergers and acquisitions trend growing

In November, Shanghai Jin Jiang International Holdings Co. Ltd. completed its acquisition of France’s Louvre Hotels Group, the second-largest European hotels company in a deal reportedly valued at least €1.2 billion ($1.49 billion). According to statistics, in 2014, at least 9 china’s domestic enterprises acquired overseas hotels.

On January 23, Wang Jianlin, the president of the Dalian Wanda Group, announced that Wanda Hotels & Resorts would build a star hotel in Davos. On January 25, a Chinese investor spent $ 135 million dollars to buy a hotel in Melbourne. On February 8, HNA Group buys 5.5% equity stake in NH Hotel Group of Spain. On February 14, Chinese Strategic Holdings Limited invested 1 billion in Northern Marianas Hotel & Casino. On February 19, Chongqing Kangde Industrial (Group) Co., Ltd. acquired a Spanish hotel for 66 million. On July 2, Fuhua Group, a collectivized private-owned enterprise, bought Park Hyatt Melbourne for 130 million Australian dollars. On July 8, Wanda Group announced to invest $ 900 million to build five-star hotel in Chicago. On August 14, Keck Seng Investments (Hong Kong) Ltd. paid 273 million dollars for acquiring Sofitel New York.

Top2. Economy hotels adopt multiple brands development strategy to develop the middle level hotel market.

On one hand, most economy hotels strengthened the efforts to extend franchise hotels so as to earned franchise fee. On the other hand, these economy hotels tried to explore the multiple brands strategy and penetrate into the high-end market to enhance the brand value. For example, Plateno hotels group, one of china's leading hospitality groups, owned a series of brands including 7 Days Inn, Portofino, Lavande, James Joyce Coffetel, ZMAX Hotels, Xana Hotelle and Daojia. Plateno hotels group created a new joint venture named ALBAR hotels with Paris Inn to launch 200 five star boutique hotels worldwide and also introduce Hampton by Hilton into Chinese hotel market. Alex Zheng, the president of Plateno hotels group, said that the number of group’s brand will exceed 26.

Top 3 the potential of Theme Boutique Hotel in China is huge

Through the development of these years, Theme Hotels have become widespread across the country. These theme hotels combine the local culture and their own characteristics to provide unique experience for the guests. To standardize theme hotel building, Beijing, Zhejiang, Shandong, Sichuan and other regions have also studied and formulated evaluation standard for theme hotels. The development of theme hotels with great potential can be said in the ascendant.

Top4. Some Star hotels abandoned their “Star” initiatively.

Under the impact of policies, most of Chinese star hotels fell into the troubles caused by their “Stars” and tried hard to lower their Star level. According to the incomplete statistics, Henan province disqualified 27 hotels from their star level including 12 three-star hotels in 2014.

Top5. Anti-pornography campaign in hotel industry leads to the decline of the golden age of Dongguan hotel market

Hotel industry is one of three pillar industries in Dongguan. The prosperity of hotel industry tends to be closely linked with advanced manufacturing industry and underground porn industry of Dongguan. The illegal underground porn industry has come to light during anti-pornography campaign, so Dongguan hotel industry with an annual turnover of 30 billion Yuan was deeply influenced. However, the operating basis and facilities support services market of Dongguan hotel industry are mature to support its recovery. In 2015, we look forward to the recovery of Dongguan hotel industry.

Top6. High-end restaurant industry turns to cater for many different types of interest and taste among the common people

Jiang Junxian, the Chairman of China Cuisine Association, attended The 2014 Conference of the Chinese catering industry and said that national Food & Beverage Revenue reached 2259.1 billion Yuan, up 9.7% from the same period last year. Growth rate rose 0.7 percent from a year earlier. However, the national catering market has still experienced ups and downs. High-end catering enterprises have been struck by frugal mood and tried to cater for the interest and taste of common people. High-end catering industry tends to lower the cuisine prices, to develop menus favored by common people, to allow consumers to buy in a group and to provide value-added services besides food and beverage.

Top7. The industry's profits are limited by canceling lowest cost of consumption

Recently, General Office of the Communist Party of China and General Office of the State Council of the People's Republic of China released The Opinions about Practicing Strict Economy and Opposing Food Waste. The government required that restaurants cannot set minimum consumption. Internet users think that canceling minimum consumption is a piece of good news for consumers, but the hoteliers said that setting minimum consumption is quite upset, because some guests stay in boxes with ordering some cheapest dishes.

Top8. China’s second-tier and third-tier cities have watched the breakneck expansion of International hotel groups over the last year.

Susan Devins, Four Seasons Hotels and Resorts’ Vice President of Asia Pacific Sales and Marketing, revealed that Four Seasons Hotels and Resorts currently has operated 8 hotels in China and plans to add 6 new hotels, which will be mostly located in china’s second and third tier cities, such as Tianjin, Wuhan and Chengdu. Many international hotels group such as Rosewood Hotel Group, Lamborghini Group, Hilton Hotels and Resorts, Intercontinental Hotels Group, Accor Hotels and Resorts, Marriott International and Shangri-La Hotels and Resorts settled in Chongqing successively to build high-end hotels. Second and third tier cities are favored by most of international hotels, and then could these cities become a battlefield of international hotels in the future?

Top9. The entire marketing channel of China’s hotel industry starts the multiplication

Hotel industry is one of the most important fields of online-to–offline (O2O). Customer Service is the best juncture of Wechat and hotel sevices. WeChat is a new and powerful mobile communication tool. It supports sending voice, video, photo and text messages. Many hotel groups have created a Wechat account and upgraded their accounts constantly.

Top 10. The war between OTAs and hotels has intensified.

OTAs are often called vampires by hoteliers. They reduce the profits of hotels, but also help hotels to get more booking volume. The development of China’s hotels is limited by OTAs. As fighting intensified, who will be the winner?