The Report Covers Hotel Industry in China and is Segmented by Type (Chain Hotels and Independent Hotels) and Segments (Service Apartments, Budget and Economy Hotels, Mid and Upper Mid-Scale Hotels, and Luxury Hotels). The Market Size and Forecasts for the Hospitality Industry in China are Provided in Terms of Value (USD Billion) for all the Above Segments.

Market Overview The China Tourism and Hotel market is projected to grow from a market size of 385.07 million in 2025 to 672.04 million by 2033, exhibiting a CAGR of 5.53% during the forecast period. The market growth is attributed to factors such as rising disposable income, increasing urbanization, and government support for tourism development. Additionally, the growing popularity of online travel agencies and the expansion of the hospitality sector are contributing to market growth. Market Dynamics The major drivers of the China Tourism and Hotel market include the increasing number of middle-class consumers, the development of transportation infrastructure, and the growing popularity of domestic and international travel. Key trends shaping the market include the rise of digital tourism, the emergence of sustainable tourism practices, and the increasing demand for personalized experiences. However, market restraints include geopolitical tensions, economic fluctuations, and the impact of natural disasters. In terms of segmentation, the inbound tourism segment is expected to witness significant growth, while the product segment is dominated by chain hotels. Major players in the market include Trip.com Group Ltd., Shanghai Jin Jiang International Hotels (Group) Co. Ltd., and Huazhu Hotels Group Ltd. The China Tourism and Hotel Market is poised for substantial growth in the coming years. The market is expected to reach USD 1,242.9 billion by 2027, growing at a CAGR of 12.6% from 2022 to 2027. The growth of the market can be attributed to several factors, including the rising disposable income of Chinese consumers, the increasing popularity of domestic travel, and the government's initiatives to promote tourism. Recent developments include: May 2023: IRIS, the provider of digital F&B and guest experience platforms, aimed to increase its market share across China’s growing hospitality market. The company made a new partnership with Asia-based hospitality technology reseller MYM, utilizing IRIS’s Chinese Azure cloud solution., October 2022: Wyndham Hotels and Resorts opened two hotels named Wyndham New Taipei Linkou and Wyndham Sun Moon Lake in partnership with Qingyu Property Co. Ltd and Lijing Enterprise Co. Ltd, respectively. The openings mark the first hotels for each brand in the China-Taiwan region.. Key drivers for this market are: Cultural Heritage and Tourism Attractions Are Driving the Market, Increasing Domestic and International Tourism. Potential restraints include: Language Barrier Is Restraining the Market, Seasonality and Regional Disparities. Notable trends are: Rising Demand for Hotels Is Driving the Growth of the Market.

The revenue in the 'Hotels' segment of the travel & tourism market in China was forecast to continuously increase between 2024 and 2029 by in total 13.5 billion U.S. dollars (+16.6 percent). After the ninth consecutive increasing year, the revenue is estimated to reach 94.81 billion U.S. dollars and therefore a new peak in 2029. Notably, the revenue of the 'Hotels' segment of the travel & tourism market was continuously increasing over the past years.Find other key market indicators concerning the average revenue per user (ARPU) and number of users. The Statista Market Insights cover a broad range of additional markets.

The China Tourism and Hotel Industry Report is Segmented by Type Into Inbound Tourism and Outbound Tourism and by Product Into Chain Hotels and Independent Hotels. The Report Offers Market Size and Forecasts for China's Tourism and Hotel Industry in Value (USD) for all the Above Segments.

The China extended stay hotel market is projected to see significant growth over the next decade. It is expected to grow from an estimated USD 4.5 billion in 2025 to USD 9.7 billion by 2035, with a CAGR of 8% during the forecast period from 2025 to 2035. The rise of remote working, increased business relocations, and growing interest in long-term leisure stays are major drivers of this growth, with an increasing demand for more flexible, self-sufficient accommodations.

In 2023, all hotel enterprises above designated size in China generated a revenue of approximately 531 billion yuan, around 148 billion yuan more than in the previous year. In the laste decade, the revenue numbers were the lowest in 2020, the first year of the COVID-19 pandemic.

China Hotel: Revenue data was reported at 332,974.300 RMB mn in 2020. This records a decrease from the previous number of 434,360.980 RMB mn for 2019. China Hotel: Revenue data is updated yearly, averaging 342,886.650 RMB mn from Dec 2005 (Median) to 2020, with 16 observations. The data reached an all-time high of 434,360.980 RMB mn in 2019 and a record low of 135,328.104 RMB mn in 2005. China Hotel: Revenue data remains active status in CEIC and is reported by National Bureau of Statistics. The data is categorized under China Premium Database’s Hotel Sector – Table CN.QHA: Hotel Operation.

The Chinese hospitality market is projected to reach a market size of $86.66 million by 2033, growing at a CAGR of 8.12% from 2025 to 2033. This growth can be attributed to the increasing influx of tourists, the rising popularity of domestic travel, and the expanding middle class. Further, the increase in business travel, the growing demand for premium and luxury hotels, and the government's supportive policies are also contributing to the market expansion. Significant trends shaping the market include the increasing adoption of technology, the emergence of lifestyle and wellness-focused hotels, and the growing popularity of short-term rentals. However, the market growth may be restrained by economic fluctuations, competition from alternative accommodation options, and the evolving preferences of modern travelers. The market is segmented into chain hotels, independent hotels, service apartments, budget and economy hotels, mid and upper mid-scale hotels, and luxury hotels. The competition landscape is fragmented, with the presence of major players such as Jinjiang International, The Ritz-Carlton, GreenTree Hospitality Group, Ascott Limited, and Huazhu Hotels Group, among others.

China's hospitality market has seen substantial growth and is poised to continue its trajectory, driven by the country's rapidly expanding tourism sector and growing urban population. This report delves into the key characteristics, trends, drivers, challenges, and competitive landscape of the industry, providing valuable insights for potential investors and market participants. Recent developments include: November 2022: The U.S.-based hotel chain Marriott International announced the plan to add 30 hotels in Greater China by the end of 2023. This is expected to add more than 460 properties in 120 destinations in the Greater China region to Marriott's hotel portfolio., September 2022: The U.S.-based hospitality firm InterContinental Hotels Group (IHG) announced the opening its 600th hotel in Greater China. The Kimpton Bamboo Grove Suzhou has 179 rooms and features a signature Chinese restaurant, The Grove.. Key drivers for this market are: Health and Wellness Trends is Driving the Market, Cultural Exploration is Driving the Market. Potential restraints include: Long-Distances are Physically Demanding which in return Restraining the Market. Notable trends are: The Rising Demand for Hotels is Driving the Growth of the Market.

By the end of 2023, the hotel industry in China employed approximately 1.79 million people, significantly more than in the previous year. The hotel industry employee numbers fell in 2020 due to the coronavirus pandemic and travel restrictions.

The penetration rate in the 'Hotels' segment of the travel & tourism market in China was forecast to continuously increase between 2024 and 2029 by in total 16.1 percentage points. After the ninth consecutive increasing year, the penetration rate is estimated to reach 36.13 percent and therefore a new peak in 2029. Notably, the penetration rate of the 'Hotels' segment of the travel & tourism market was continuously increasing over the past years.Find other key market indicators concerning the revenue and average revenue per user (ARPU). The Statista Market Insights cover a broad range of additional markets.

China Online Accommodation Market is segmented By Platform type (Mobile application, Website) & By Mode of Booking Type (Third Party online portals, Direct/Captive portals).

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Capsule Hotel Market Size 2024-2028

The capsule hotel market size is forecast to increase by USD 50.3 million at a CAGR of 10.03% between 2023 and 2028.

The market is experiencing significant growth due to several key factors. The increasing disposable income of travelers, particularly in Asia Pacific, is driving demand for affordable yet comfortable lodging options. Moreover, the expansion of the global travel and tourism industry is fueling the growth of this market. However, the negative impacts of the pandemic on the hospitality industry have presented challenges, leading to temporary closures and reduced occupancy rates. However, concerns like claustrophobia and large luggage may pose challenges to the market. Despite these hurdles, the market is expected to recover and continue its growth trajectory as travel restrictions ease and consumer confidence returns. The capsule hotel concept offers a unique and cost-effective solution for budget-conscious travelers, making it an attractive investment opportunity for industry players.

What will be the Size of the Capsule Hotel Market During the Forecast Period?

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The market, also known as pod hotels or sleeping cabins, offers cost-effective lodging solutions for solo travelers and office workers. These vertical or horizontal structures provide compact, individual living spaces equipped with essential amenities such as a pillow, locker facility, alarm clock, and charging socket. Common washroom facilities are shared among guests, ensuring efficiency and affordability. The market caters to both tourists and local residents, particularly those in need of hourly accommodations near train stations or tourist areas. The trend toward simple, minimalist accommodations has gained popularity among Generation Y and international travelers seeking unique experiences. Capsule hotels come in various designs, including wooden and metallic structures, and can be found in numerous locations worldwide. The market continues to grow, driven by increasing demand for affordable lodging options In the tourism sector.

How is this Capsule Hotel Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Mode Of Booking

  Offline booking
  Online booking


Geography

  APAC

    China
    Japan


  North America

    US


  Europe

    Germany
    UK


  South America



  Middle East and Africa

By Mode Of Booking Insights

The offline booking segment is estimated to witness significant growth during the forecast period.

Capsule hotels offer hourly basis accommodation for solo travelers and groups, providing a cost-effective lodging solution for budget-conscious tourists and office workers. These vertical and horizontal structures come in both wooden and metallic designs, catering to the preferences of Generation Y travelers. Operators in the lodging industry have capitalized on the demand for flexible booking options, keyless entry systems, and smartphone apps, allowing travelers to easily reserve hourly rates for shared bathroom facilities.

Capsule hotels are particularly popular among tourists facing flight delays or long layovers, as well as students on international trips. The compact design of these simple accommodations allows for efficient use of real estate, making them an attractive option for the tourism sector. However, some travelers may find the claustrophobic nature of these small spaces a deterrent. Despite this, the budget accommodation segment continues to thrive, with operators offering hourly accommodations near train stations and other transportation hubs to cater to the needs of the traveling public.

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The Offline booking segment was valued at USD 49.70 million in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 41% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The Asia Pacific (APAC) region dominates the market, driven by the rising disposable income of the middle class and the growing preference for affordable accommodations among millennials. The region's economic growth, particularly in countries like Japan, China, and India, has led to an increase in the number of budget-conscious travelers, including backpackers, solo adventurers, and business travelers. These travelers seek cost-effective lodging solutions,

The report covers Asia-Pacific Luxury Hotel Companies and it is Segmented by Service Type (Business Hotel, Airport Hotel, Suite Hotel, Resort, and Other Service Hotels) and by Geography (China, India, Japan, Australia, Thailand, Vietnam, Rest of Asia-Pacific). The market size and forecasts for the Asia-Pacific Luxury Hotel Market are provided in terms of value (USD billion) for all the above segments.

Star-Rated Hotel: Number of Hotel: Hunan: Changsha data was reported at 39.000 Unit in 2022. This records a decrease from the previous number of 41.000 Unit for 2021. Star-Rated Hotel: Number of Hotel: Hunan: Changsha data is updated yearly, averaging 68.000 Unit from Dec 1999 (Median) to 2022, with 24 observations. The data reached an all-time high of 121.000 Unit in 2008 and a record low of 25.000 Unit in 2000. Star-Rated Hotel: Number of Hotel: Hunan: Changsha data remains active status in CEIC and is reported by Changsha Municipal Bureau of Statistics. The data is categorized under China Premium Database’s Hotel Sector – Table CN.QHRB: Star-Rated Hotel: Number of Hotel: Prefecture Level City.

The hotel industry in China faced a significant setback resulting from the coronavirus outbreak. In the first half of 2020, the average occupancy rates of luxury hotels in Beijing dropped by 71.4 percent compared to the previous year, while the RevPAR decreased by 74.8 percent. High-end hotels in Sanya, a popular tropical vacation spot among high-end travelers, experienced only a 4.5 percent loss of average room price compared to the previous year. Hotel business in the pandemic2020 has proven to be a gloomy year for hotel operators. The pandemic outbreak caused most Chinese New Year travel and tourism to be cancelled, a market generating more than half a trillion yuan in revenue each year. Due to the nationwide lockdowns and travel restrictions, hotels in China recorded a decrease in occupancy rates of nearly 80 percent in February 2020.

As per Cognitive Market Research's latest published report, the Global Hotel market size was $784.82 Billion in 2023 and it is forecasted to reach $1,126.04 Billion by 2030. Hotel Industry's Compound Annual Growth Rate will be 5.29% from 2023 to 2030. What are the key driving factors for the Hotel market?

The Rising Investment in the Global Hotel Industry is Favoring the Market Growth

The year 2022 was a year that started with the reopening of many international borders and huge amounts of government economic stimulus. However, the outbreak of Ukraine-Russia war was a growing geopolitical tension. Despite all these challenges, the global hotel and lodging industry continues to show resilience as RevPAR (Revenue Per Available Room) towards complete recovery). For instance, according to the data of the Global Hotel Investment Outlook 2023, at the year end of 2022, the proportion of RevPAR recovered relative to that of 2019 by region ranged from 69% to 108%. Additionally, in the period of seven years before COVID-19, outbound Chinese capital for the global hotel investment accounted for USD 3.4 billion every year. From the year 2020 to 2022, the outbound Chinese hotel investment has been about USD 400.0 million.

The transaction activities in the hotel industry had been witnessed to be increased than before. For instance, according to the research of Jones Lang LaSalle IP, Inc. (JLL) and Global Hotel Investment Outlook 2023, two of the three global regions (the Americas and the APAC) observed an increased hotel investment volume in 2022. Moreover, private equities continue to be the largest acquirers of hotel assets globally. In the year 2022, there had been witnessed a significant increase in new investors entering the hotel industry. In fact, a 16% of the year’s global investment volume in hotel industry was generated by the first-time hotel buyers.

In the year 2022, there was a decline in investment volume, and same can be expected in 2023, owing to large portfolios might be challenging to finance. There can likely be a bifurcation in hotel acquisitions as luxury hotels will be continuing to sell for high values. In addition, in 2022, foreign investors deployed capital not only towards individual hotel assets but also into large-scale platforms, especially in the luxury space. For instance, in the third quarter of 2022, Saudi Arabia’s Public Investment Fund (PIF) entered into partnership with London-based investment firm Cian International to invest about USD 900 million into the Aman Group, valuing the ultra-luxury platform over USD 3 billion.

The Accelerating Global Travel and Tourism Fueled the Demand for Hotels, Drives the Market Growth

The Availability of Alternative Accommodation Places such as Short Term Rental Homes, Hostels, and Others May Hamper the Market Growth(Access Detailed Analysis in the Full Report Version)


The Rising Popularity of Ultra-Luxury Segment Generates an Opportunity for Expansion of the Market.(Access Detailed Analysis in the Full Report Version)

What is a Hotel?

A hotel is the most common type of accommodation, which can be defined as an establishment that offers overnight accommodation, meals, and various other services. Hotels are mainly aimed/targeted at tourists or travelers, although the local residential can also use hotels. Hotels is a segment categorized under the hospitality and tourism sector. Different hotels possess a wide range of accommodations ranging from budget motels to luxury resorts. Hotel industry consists of lodging places, event planning, theme parks, restaurants, and others, and it includes various activities such as facility maintenance & direct operations including porters, servers, housekeepers, kitchen keepers, bartenders, and many more. The global hotel industry is exhibiting a positive growth after COVID-19. For instance, according to the data of Global Hotel Investment Outlook, 2023, the hotel occupancy has reached 89% recovery as compared to that of 2019, thereby, proving its resilience.

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Boutique Hotels Market Size 2025-2029

The boutique hotels market size is forecast to increase by USD 11.36 billion at a CAGR of 7.1% between 2024 and 2029.

The market is experiencing significant growth due to the expanding tourism industry and the increasing preference for unique and authentic experiences among travelers. Boutique hotels offer personalized services, customized health and wellness programs, and catering options that cater to individual needs. Seasonality and demand fluctuations are key challenges for this market, requiring hotels to implement digital solutions such as artificial intelligence and automation to optimize operations and enhance guest experiences. The cruise industry is also integrating boutique hotels onboard ships to cater to the evolving needs of luxury travelers. The market is poised for continued growth as travelers seek personalized, high-quality experiences in the competitive tourism landscape.

What will be the Size of the Boutique Hotels Market During the Forecast Period?

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The market caters to travelers seeking unique, personalized experiences, focusing on authenticity, local culture, and high-quality service. This market encompasses urban boutique hotels, boutique beach resorts, and independent properties, all offering individualized service and soft branding strategies. Young travelers, particularly millennials, are driving growth in this sector, favoring experiential stays over extended vacations. Online booking and digital platforms facilitate convenience, while social media and online reviews influence consumer decisions. Aesthetics, health services, and eco-conscious travel are key trends, with energy-efficient systems and mobile key systems enhancing the guest experience. Loyalty programs and personalized travel experiences further differentiate this market from mass-market accommodations.

How is this Boutique Hotels Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Business hotels
  Suite hotels
  Airport hotels
  Resort hotels


Channel

  Online booking
  In-person booking


Service Type

  Luxury boutique hotels
  Budget boutique hotels
  Family-friendly boutique hotels
  Adults-only boutique hotels


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France
    Italy


  APAC

    China
    India
    Japan


  South America

    Brazil


  Middle East and Africa

By Type Insights

The business hotels segment is estimated to witness significant growth during the forecast period.

Business hotels have gained popularity due to their ability to cater to the distinct needs of business travelers. Strategically located in commercial and financial districts, these hotels offer easy access to major business centers, corporate offices, and conference venues, saving time and providing convenience. Business hotels provide specialized amenities and facilities, such as well-equipped meeting rooms, conference facilities, high-speed Internet access, business centers, printing and copying services, and 24-hour room service. Young travelers, millennials, and extended vacationers also seek experiential stays, personal space, and personalized service, which business hotels often offer. Tech-driven hospitality, themed experiences, pet-friendly accommodations, art-centric hotels, and eco-conscious travelers are other target markets.

Online booking, social media marketing, and loyalty programs are essential digital platforms for these hotels. Sustainable practices, such as energy-efficient systems, water conservation, and locally sourced food, appeal to affluent and leisure travelers.

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The business hotels segment was valued at USD 7.13 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

Europe is estimated to contribute 33% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Another region offering significant growth opportunities to vendors is North America. They have experienced significant growth in North America over the last decade, catering to travelers seeking personalized and intimate accommodations. Known for their stylish and aesthetically pleasing interiors, these unique lodgings offer a visually appealing experience for those who value design and ambiance. Millennials, short-trip travelers, and extended vacationers, as

The APAC luxury hotel market, valued at $61.70 billion in 2025, is projected to experience robust growth, driven by a burgeoning affluent class in key markets like China, India, and Japan. A Compound Annual Growth Rate (CAGR) of 8.15% from 2025 to 2033 indicates significant expansion potential. This growth is fueled by several factors, including rising disposable incomes, increasing demand for experiential travel, and a growing preference for personalized and high-end services within the hospitality sector. The upscale and luxury segments are expected to be the primary growth drivers, with chain hotels maintaining a significant market share due to their established brand recognition and global reach. However, independent luxury hotels are also gaining traction, capitalizing on the demand for unique and bespoke experiences. The increasing popularity of wellness tourism and sustainable travel practices further shapes the market landscape, leading to innovative offerings and a focus on environmental responsibility within the luxury hospitality sector. While the market faces challenges such as economic fluctuations and geopolitical uncertainties, the long-term outlook remains positive. The expansion of infrastructure, particularly in emerging economies, is expected to enhance accessibility and boost tourism, thereby supporting the growth trajectory of the APAC luxury hotel market. Competition among established players like Accor, Marriott, and Hilton is intense, with companies employing various competitive strategies such as strategic partnerships, brand extensions, and loyalty programs to retain their market position. The market's segmentation, encompassing various ownership models and hotel types, offers diverse investment opportunities, reflecting the evolving preferences and demands within the APAC luxury travel market. The continued focus on delivering exceptional guest experiences, combined with strategic investments in technology and sustainable practices, will play a critical role in shaping the future landscape of this lucrative market segment.

China Hotel: Sales Revenue data was reported at 369,369.670 RMB mn in 2016. This records an increase from the previous number of 360,221.370 RMB mn for 2015. China Hotel: Sales Revenue data is updated yearly, averaging 345,390.673 RMB mn from Dec 2009 (Median) to 2016, with 8 observations. The data reached an all-time high of 369,369.670 RMB mn in 2016 and a record low of 228,164.547 RMB mn in 2009. China Hotel: Sales Revenue data remains active status in CEIC and is reported by National Bureau of Statistics. The data is categorized under China Premium Database’s Hotel Sector – Table CN.QHA: Hotel Operation.

The overall hotel occupancy rate in China decreased significantly in the first year of the COVID-19 pandemic and once again in 2022. In 2023, the occupancy rate of star-rated hotels increased again to around 50.7 percent.