For years, Chinese hotel operator H World’s growth centered on lower-tier city penetration, where branded hotel supply remains fragmented. That strategy remains intact. But on Friday’s earnings call, CEO Hui Jin flagged a return to Tier 1 and Tier 2 cities, especially premium business districts.
China’s prolonged property downturn has weakened commercial real estate markets, creating an opening to secure premium sites.
“Given the current supply cycle of the real estate market,” Jin told analysts, the company is actively “grabbing emerging opportunities” in core and premium business districts.
The strategy also aligns with H World’s push into higher-end segments. The company plans to deploy its upper-midscale brands into these prime locations.
“We will be developing our premium hotel product in those Tier 1 and Tier 2 cities. We are fully confident that H World will be delivering high-quality growth in both the lower-tier cities as w