With the beginning of 2021, the economic recovery and vigorous development of all industries presented a good trend. The year 2020 has passed, but the impact of COVID-19, the protagonist of that year, still exists, especially in the tourism industry. Among them, the demand for hotel supplies and related demand for hotel supplies is deeply affected by it. 2020 is a year of impact for Quadranteco, but it is also a year of rapid growth. We adhere to the quality of products on the basis of the development of ideas, the development of new products to meet the different needs of the market. We cooperate with Japanese laboratory and Guangzhou laboratory to launch various skin care products, cosmetics and hotel amenities, which not only pursue exquisite packaging, but also pursue product quality. Thus deeply liked by the consumer. In addition, we also develop the handmade product market. The creative handmade soap and handmade candles are also popular among young people.
Looking back at the development of the hotel industry over the past two years, we find that the total number of chain and independent hotels in the world reached 886,900 in 2019, including 699,000 independent hotels and 187,900 chain hotels. However, the adverse impact of COVID-19 on demand for business and leisure travel has significantly reduced demand in the hospitality industry. As a result of the outbreak, many companies canceled collective meetings, trade shows, business meetings and restricted personal and business travel during the outbreak. Many employees are required to work at home and do video conferencing instead of face-to-face meetings. On the other hand, as the outbreak rapidly escalated into a global pandemic, many countries imposed restrictions on non-essential travel, such as leisure travel. This greatly reduces the demand for hotels, and its effect is not small, from the interests of the group to the employment of hotel staff. Many independent hotels are facing closure or temporary closure because of this, and thus the unemployment rate of hotel employees remains high.
In contrast, take a look at chain hotels, in such a market environment, the chain hotel penetration rate continues to increase, the hotel supply growth. As of December 31, 2019, chain hotel rooms accounted for only 24.9 percent of hotel rooms in China, far below the global average of about 41.1 percent. Specifically, the relatively low penetration rate of chain hotels in China's third-tier or lower cities (about 21.1% in 2019) represents a huge growth opportunity for chain hotels. Budget hotels constitute the largest component of the Chinese chain hotel industry, accounting for about 79% and 53% of the total number of hotels and hotel rooms in China in 2019. In the past 2020, foreign hotel giants did not slow down the pace of expansion due to the epidemic. On January 4, the reporter learned from a number of hotel groups that last year, intercontinental Group opened nearly 60 hotels, Hilton Group expanded dozens of high-end hotels, and as the largest hotel group marriott also opened 36 hotels in China. It can be seen that although last year was affected by the epidemic, each business suffered a lot of impact, but the number of chain hotels still bucked the trend of growth.
Zhao Huanyan, senior economist, pointed out that after experiencing the epidemic, the disadvantages of individual hotels' poor anti-risk ability were magnified, while chain hotels were recognized by more owners because of their strong anti-risk ability, the ability to reduce costs by scale, and the ability to effectively increase profits, which also helped accelerate the chain process of domestic hotels. Last December, Hilton announced the opening of the Waldorf Astoria Xiamen, Hilton's 300th hotel in The Chinese market. Talking about future expansion plans, Hilton also said that the next goal is to manage more than 1,000 hotels in the Chinese market by 2025.
For China's hotel industry, 2020 is destined to be an extraordinary year. From the "darkest hour" in the first quarter to the "bright light" in the third quarter, the hard-hit hotel industry is on the road to recovery. It is worth mentioning that, as China enters the period of normal epidemic prevention and control, although the domestic hotel industry is on the road of recovery, the development environment it faces has changed dramatically. "The government is gaining recognition for domestic brands." Zhang Ye, vice president of Sunac Travel Group and head of the hotel, observed that both domestic consumers and local governments at present, in the context of the domestic economic cycle, the hotel industry in brand management and development opportunities. There will always be opportunities where there is a crisis. Therefore, while doing our part well, we always believe and expect that the hotel industry and even the hotel amenities section will get better and better!
