As China’s largest tourism industry conglomerate, the Jinjiang International Group’s listed company, Jinjiang Hotels, recently released its 2024 annual report and 2025 first-quarter financial report. The data shows that this large state-owned enterprise is facing a continuous decline in performance, reflecting the current weak recovery of the overall tourism and accommodation industry in China.
According to the 2024 annual report, Shanghai Jinjiang International Hotel Co., Ltd. (referred to as “Jinjiang Hotels”) achieved a revenue of 14.063 billion yuan for the full year, a decrease of 4.00% year-on-year. The net profit attributable to the parent company was 911 million yuan, a decrease of 9.06% year-on-year. The net profit after deducting non-recurring gains and losses was only 539 million yuan, a significant decrease of 30.32% year-on-year.
The company stated that this change was mainly due to the concentrated rebound of the domestic tourism market in 2023 leading to a high base number, along with credit impairment losses provisioned for aged accounts receivable.
In terms of quarterly performance, Jinjiang Hotels maintained profitability in the first three quarters of 2024 but experienced a sharp downturn in the fourth quarter, resulting in a loss. Data shows that the non-recurring net profit loss for the fourth quarter of 2024 amounted to 99.2879 million yuan, a drastic decline of 253.21% year-on-year.
Entering 2025, the operational pressure on Jinjiang Hotels seems to have not eased. Its first-quarter financial report shows that the company achieved operating income of approximately 2.942 billion yuan, a decrease of 8.25% year-on-year; net profit attributable to the parent company was about 36.0121 million yuan, a significant decrease of 81.03% year-on-year; and the non-recurring net profit attributable to the parent company was around 26.6145 million yuan, a decrease of 57.29% year-on-year.
The company explained that the decline in profits was mainly due to reduced non-core business income such as gains from hotel asset disposals, changes in the fair value of financial assets, and the overall decrease in revenue.
Looking at specific business segments, Jinjiang Hotels’ full-service hotels (high-end hotels) in mainland China achieved consolidated operating income of around 59.2 million yuan in the first quarter of 2025, a 31.39% year-on-year increase, showing some resilience. However, the key accommodation indicator RevPAR (revenue per available room) decreased by 8.3% year-on-year to 192.19 yuan, and the average daily room rate also decreased by 9.61% year-on-year to 452.01 yuan. Although the average occupancy rate slightly increased by 0.61 percentage points to 42.52%, the price decline still put pressure on overall revenue.
At the same time, Jinjiang Hotels’ limited-service hotels (including mid-to-high-end and economy hotels) in mainland China, which account for a larger proportion of revenue, also showed less than ideal performance. This segment achieved a RevPAR of 145.25 yuan in the first quarter, a decrease of 5.31% year-on-year; average daily room rate was 225.83 yuan, a 6.84% decrease year-on-year. While the average occupancy rate increased slightly by 0.98 percentage points to 60.9%, the downward price trend is similar to that of full-service hotels.
More concerning is Jinjiang Hotels’ overseas business. Its limited-service chain hotels outside mainland China saw a consolidated operating income of 103.01 million euros in the first quarter of 2025, a decrease of 10.47% year-on-year. In terms of accommodation indicators, RevPAR was 34.55 euros, a decrease of 3.09% year-on-year; the average occupancy rate also dropped by 2.92 percentage points to 53.34%. Although the average daily room rate increased by 2.21% to 64.77 euros, it was still difficult to offset the double decline in revenue and occupancy rate.
Additionally, Jinjiang Hotels’ food and beverage business also faced challenges, with consolidated operating income of 53.41 million yuan in the first quarter of this year, a decrease of 13.78% year-on-year.
Publicly available information shows that Jinjiang International Group is the largest comprehensive hotel and tourism enterprise group in China held by the Shanghai State-owned Assets Supervision and Administration Commission. The group has three core businesses of hotels, tourism, and passenger transportation and controls (or indirectly controls) three listed companies: “Jinjiang Hotels,” “Jinjiang Online,” and “Jinjiang Tourism.” Currently, the group still manages a number of hotels exceeding 10,000, ranking globally only behind Marriott International.
As a major tourism industry conglomerate in China, Jinjiang Hotels’ financial troubles undoubtedly reflect the impact of the overall economic downturn in China on the tourism industry. Against the backdrop of weak consumer demand in China, even the once thriving hotel industry giants struggle to sustain themselves. Despite a retaliatory rebound in the industry shortly after the epidemic, the stagnant overall economic growth in China and the increasingly conservative spending habits of residents have hindered the continuous growth of tourism and accommodation demand.