Beijing’s catering and accommodation industry faced a significant decline in profits in the first half of this year, as revealed by recent official data, sparking strong concerns within the industry. Behind the cold numbers lies not only a sharp deterioration in corporate profitability but also a systemic crisis from high-end consumption to livelihood consumption, as well as the brutal truth of collective losses among domestic enterprises. Analysts believe that in such a harsh market environment, foreign catering and accommodation businesses in Beijing can only choose to retreat.
According to the main economic indicators released by the Beijing Municipal Bureau of Statistics in August for the period from January to June this year for entities in the catering and accommodation industry above a certain quota, the statistics indicated a total of 5,135 corporate units in Beijing in this sector, achieving operating income of 73.775 billion yuan, a 3.7% year-on-year decrease; operating costs of 36.019 billion yuan, down by 1.2% year-on-year; and a total profit of 247 million yuan, plunging by 67% year-on-year.
The Communist government conducts regular statistics and investigations on accommodation and catering enterprises with annual revenues exceeding 2 million yuan. Based on official data, among the 1,613 accommodation entities in Beijing with revenue exceeding the limit, their operating income decreased by 7.3% year-on-year, with total profits plunging to only 59.8 million yuan, a staggering 92.9% decrease.
This dire situation is further confirmed in specific business data. A media outlet focused on the tourism industry, “Travel World,” pointed out that the declining trend is intensifying. From January to June 2024, the accommodation industry above the limit in Beijing had already experienced a 31.9% year-on-year decline, and in 2025, this figure further dropped by 7.3% in revenue and a 92.9% plunge in profits. It’s not just a downturn anymore; it’s like falling into a black hole within a trough.
An interview with Liu Wei, the founder of the chain hotel brand Qiu Guo Hotel based in Beijing, revealed internal performance data from the flagship store showing a nearly 99% profit decline from January to June 2025. “The profit of Qiu Guo is basically consistent with the overall profit data of the accommodation industry in Beijing, completely wiped out.”
Financial blogger “Chen Jieshen,” with 961,000 followers on social media, analyzed the official data in detail. He pointed out that the combined profit margin of the catering and accommodation industries in Beijing in the first half of this year was just over 0.3%.
In the first half of 2024, the total profit of the catering and accommodation industries in Beijing was over 1.2 billion yuan. In the first half of 2023, the total profit was 2.8 billion yuan.
“Chen Jieshen” stated that these figures indicate that profitability in Beijing’s catering and accommodation industries can’t even be guaranteed for normal operations, leading to inevitable losses. He emphasized the alarming downward trend in these sectors and the financial struggle faced by businesses.
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