China's budget brands plan global growth

China outbound capital restrictions

While Chinese business have been scooping up high-profile assets across the world, the country's budget chains are also expanding beyond its borders. 

From 2004 to 2014, the number of budget hotels in China grew from fewer than 500 to more than 16,000. But the sector has become less profitable since 2011, according to the Financial Times. As such, the brands are expanding outward

The 7 Days Inn has approximately 2,500 hotels across China, and expanded into Austria last year. A 95-room “7 Days Premium” hotel will this week open in Vienna, while other 7 Days Premium hotels are slated to open in Berlin, Munich, Leipzig and Venice over the next year. The company is owned by Hong Kong-listed Jin Jiang International Hotels Group, which also has a majority stake in Plateno and owns France's Louvre Hotels. Plateno has hotels in Thailand (one of the most popular Chinese tourist destinations) and Malaysia. Jin Jiang has two budget hotels in the Philippines, with more in the pipeline. With all these subsidiaries, Jin Jiang is reportedly the fifth-largest hotel chain in the world.

Virtual Event


Survival in these times is highly dependent on a hotel's ability to quickly adapt and pivot their business to meet the current needs of travelers and the surrounding community. Join us for Optimization Part 2 – a FREE virtual event – as we bring together top players in the industry to discuss alternative uses when occupancy is down, ways to boost F&B revenue, how to help your staff adjust to new challenges and more, in a series of panels focused on how you can regain profitability during this crisis.

But facing overcapacity in recent years, 7 Days put a freeze on new openings in top-tier cities. “The explosive growth period is gone,” Kiki Yang, a Hong Kong-based partner at consultancy Bain, told the FT.

GreenTree Inns, meanwhile, has opened branches in the U.S., Thailand and Vietnam over the last two years, while rival Huazhu Group formed an alliance with French company Accor last year aimed at international expansion.

For the most part, the budget chains are maintaining an asset-light approach as they expand overseas, operating instead of owning. 

Suggested Articles

Champions For Better Business assists hotels with the logistics of removing furniture, fixtures and equipment as part of a renovation or conversion.

After launching in North Carolina, the brand will expand into Virginia, Tennessee, South Carolina and Texas.

Nomadix PBX aims to help hotels upgrade outdated equipment, meet new safety requirements and save money each month.