In January 2025, China's midscale and above hotel market showed distinct patterns in regional growth and brand development:
* Dominant leaders
Guangdong (4,081 rooms) and Jiangsu (2,904 rooms) accounted for 34% of all new hotel rooms nationwide, reinforcing the central role of the Greater Bay Area and the Yangtze River Delta in the hospitality landscape.
* Regional imbalance
Eastern coastal provinces—including Guangdong, Jiangsu, Fujian, Shanghai, Zhejiang, Hainan, Beijing, and Anhui—accounted for 65% of new room additions, revealing a pronounced east-west development gap.
* Standout performers
Yunnan (1,377 rooms) surpassed economically stronger provinces like Zhejiang (889 rooms), on par with Fujian (1,387 rooms), underscoring the robust growth of Southwestern China’s culture and tourism economy.
* Rise of local brands
Of the newly opened hotels, Chinese brands made up 69.1% (103 hotels), underlining a broader shift towards domestic consumption and localized supply chains. In contrast, international brands (26 hotels) are concentrated in the premium segment, while standalone properties (20 hotels) continue to decline, pointing to accelerated industry consolidation.
* Segmented growth by tier
Midrange (72 hotels, 48.3%) and upper midscale (45 hotels, 30.2%) properties dominate, reflecting a stratified consumer market and increasingly rational investment behavior. High-end select service (19 hotels) and luxury (13 hotels) account for less than 22% of additions, indicating a shift from expansion to upgrades in the luxury segment.
* Room additions led by high-end
Luxury hotels added the most new rooms (6,872, 34.2%), driven by upgrading properties in core cities. High-end select service hotels (4,701 rooms, 23.4%) cater to lifestyle preferences in emerging first-tier cities. Midrange hotels (5,567 rooms, 27.7%) are expanding into county markets, while upper midscale hotels (2,955 rooms, 14.7%) point to unmet demand in business travel offerings.
* Conclusion
China's mid- and high-end hotel market continues steady growth, marked by regional disparities and brand diversification. Key cities and regions remain investment hotspots, while rising chain penetration reflects a shift toward scale and standardization in the hospitality industry.
