According to data from hotel groups participating in a Houhai survey, China’s hotel signing market in 2024 continued its multi-year trend led by midscale and upper-midscale brands. These segments remained the core drivers of new project signings.
Upscale hotels, with lower chain penetration, presented ample expansion opportunities and became a strategic focus for major brands. Signings in this segments surged by approximately 24.6% year-over-year, reflecting investor priorities around asset value, operational efficiency, and product upgrades.
First-tier markets saw the fastest signing growth, while second-tier and below declined last year.
Tourism destinations maintained solid momentum, with 188 new signings, up 37% year-over-year, continuing the upward trend observed since 2023.
Smaller hotels with fewer than 150 rooms gained prominence over the past five years, now making up 64% of all signings. Even among luxury segments, smaller-scale projects are rising: 25% in ultra-upscale, and steadily increasing in upscale.
New-build projects remained dominant (70%), but renovation and adaptive reuse gained traction—especially in top-tier cities, where such projects accounted for 37% of signings in first-tier cities and 27% in so-called “new first-tier” cities.
Franchise model expanded its lead to 73% of signings, while management contracts declined from 47% in 2020 to 26% in 2024.
Overall, the market is characterized by a recovery in high-end segment, strong growth in upper miscale, increased activity in existing property conversions, and a more rational investment mindset.
