Budget hotel brands change tack to meet rising demand

Chinese budget hotel groups saw satisfying growth in the first half of the year, as they continue to build higher-end hotels or upgrade existing brands to attract customers seeking premium accommodation options.

Budget hotels not only face challenges from more expensive competitors, but also from bed-and-breakfast lodgings and short-term rentals, which have a price advantage and offer more distinctive experiences.

BTG Homeinns Hotel Group, owned by Beijing Tourism Group, is upgrading its budget Homeinns hotel chain to Homeinns NEO. It also recently launched new mid-end hotel brands such as Yunik Hotel.