New locations open at all price points
Even as category sales slowed somewhat, after years of rapid growth driven by tourism and business travel, leading hotel brands, such as Hanting, Home Inn, Huatian Hotel, and Jinjiang Inn, continued to open new locations.
They developed sub-brands to serve all segments of the market—budget to high-end—and moved into lower tier cities. The brands relied on combinations of direct management and franchising to balance the need to expand rapidly while maintaining quality consistency.
New government regulations, implemented in October 2013 to set quality and service standards, may increase hotel overhead and prices. At the same time, hotel marketing costs could decrease with the rapid rise of online sales and booking. Hanting introduced an innovative feature that enables the customer to select a room when booking online.