In a recent discussion on the rising trend of “reverse travel” and exploration of hidden gem towns, more and more consumers are venturing into county regions, leading to a significant uptick in the visibility and popularity of county hotels.
During the recent National Day holiday, numerous hotels in county towns saw an unprecedented surge in bookings, marking a notable highlight in the hospitality industry. Meanwhile, a wave of mid-range and high-end domestic and international hotel chains is expanding their presence in these areas, reshaping the competitive landscape. An industry insider remarked, “County hotels are far exceeding expectations,” and indeed, they are evolving.
Booking growth for popular county hotels is surpassing the market average. One consumer shared, “During National Day, I returned to my hometown at the foot of the Dabie Mountains and booked a unique artistic hotel. It was affordable, not crowded, and provided a fantastic experience.” Another added, “We chose a hot springs hotel in a county in Shandong to avoid the typical tourist hotspots. The off-peak advantage was obvious, allowing us to enjoy the amusement park and scenic lake privately.”
This year, many travelers have identified county towns as their preferred vacation destinations, directly boosting hotel reservations in these areas. According to officials from Huazhu Group, over 60 of their hotels in unique tourist destinations like Litang County (Sichuan), Wanrong County (Shanxi), Long County (Shaanxi), and Hong’an County (Hubei) achieved an average occupancy rate exceeding 100% during the National Day holiday. “This means that the hotels were fully booked even including short-term stays, indicating a substantial number of guests.”
Travel data from Tongcheng shows that during the National Day holiday, hotel bookings in major county destinations rose faster than the overall market. Nearly a hundred counties and county-level cities saw an impressive booking increase of over 50% year-on-year.
High-star hotels and mid-range chain brands in county towns are fast becoming popular choices for travelers. Cai, who runs a high-end hotel in a suburban area of Chongqing, noted, “We were fully booked for three days during the holiday, and prices increased significantly. All banquet halls were also fully booked.” Many consumers are excitedly sharing their experiences, expressing surprise at discovering such quality accommodations in county towns and pointing out the affordability compared to first- and second-tier cities.
Data from Meituan highlighted that younger travelers, particularly those under 30, gravitate towards five-star hotels located in counties like Changli County (Hebei) and Huidong County (Guangdong). According to Qunar, during the National Day, high-end county hotels were particularly popular, with booking numbers surging by 50% year-on-year.
Qunar’s data researcher, Cai Muzi, explained that many of these county destinations are near scenic spots renowned for autumn viewing, with first- and second-tier cities serving as major sources of tourists. There’s a significant surge in the demand for better accommodations, which is propelling the booking rates for high-end county hotels.
The push for mid-tier hotel chains into county towns has been underway for quite some time, even before they were brought to the limelight by a growing number of consumers. In July, the opening of the Hanting hotel in Motuo County marked Huazhu’s 10,000th store. Motuo is recognized as the last county in China to be connected by road and stands as a pivotal stop along the iconic Sichuan-Tibet Highway. “There’s a scarcity of chain hotels in the area, making it challenging for self-driving tourists to find suitable accommodations, so we saw an opportunity here,” an official from Huazhu commented. Since the beginning of the year, Huazhu has opened nearly ten hotels along this route.
Brands such as Hanting, Qianxi, and Orange have been launching their first stores in county towns. Huazhu CEO Jin Hui shared that as of the end of the second quarter, 41% of Huazhu’s operating hotels were in third-tier cities and below, a 2% increase from the previous year.
This trend isn’t confined to domestic brands; international hotel groups are also shifting their focus to these emerging markets. Jin Jiang Hotels has opened over 2,800 locations in third-tier cities and is actively establishing mid-tier brands in county centers. In early 2023, Marriott announced that 30% of its new hotels set to open in China by 2024 will be in third-tier cities or below, with expansions in places like Nanxun (Zhejiang) and Jinxian (Anhui).
Industry experts have noted that as consumer demands evolve and increase, particularly in the realm of quality lodging in underrepresented markets, a rise in leisure tourism is driving the interest of chain brands in these county areas. “The growth potential in these markets is enormous,” remarked several executives from chain hotel brands.
More than 2,800 county-level administrative regions in China represent nearly 40% of the nation’s economic output, covering hundreds of millions of people and rich in diverse cultural and natural resources. This system provides a strong foundation for the ongoing growth of tourism consumption in these areas.
Further reinforcing this potential is the substantial room for improvement in the penetration rate of county hotels. According to the 2024 China Hotel Industry Development Report, China’s hotel chain rate, calculated by the number of chain rooms, rose from 38.75% in 2022 to 40.95% by the end of 2023. Experts from the China Hotel Association assert that the trend toward chain and branded hotels is inevitable in China, with the current penetration levels still lagging significantly behind developed nations.
“Establishing hotels in areas with greater foot traffic has become a common strategy,” says a representative from Huazhu Group. “However, we acknowledge that managing operations in the diverse and expansive landscape of county markets presents its own set of challenges. Our goal is to continue expanding our presence and enhance services for consumers in these regions.”
As more brands progressively invest in county markets, it is anticipated that the local lodging industry will evolve, offering a wider array of personalized experiences to meet diverse consumer needs.
