Hotel Owners Starting to Offer Monthly Rental Services? Unveiling the New Battlefield in the Long-Term Apartment Market
Hello everyone, I'm your financial observer. Today, let's talk about a particularly interesting phenomenon: in the past, when you wanted to rent an apartment, you either had to use an agent or go through platforms like Ziru or Beike. But now, hotel giants like Huazhu (Hanting, Quanjie) and Jinjiang (Rujia, 7 Days) are also starting to offer monthly rental services.
On the Huazhu app, you can find a “Travel Accommodation” channel, and Jinjiang also has new apartment brands available. What exactly is going on behind this? Is it because hotel businesses are struggling, or has the rental market encountered some kind of “dimensional reduction attack” (a strategic shift in competition)? Let’s break this down in simple terms and make it clear for you.
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I. Core Summary: Why Are Hotel Giants Entering the Monthly Rental Business?
In short, hotel groups are turning the business of “staying for one night” into a business of “staying for a year.”
Leading hotel groups like Huazhu and Jinjiang have launched or expanded their long-term apartment brands (such as Huazhu’s “Chengjia” and Jinjiang’s “Tuling” and “Lingju”). These apartments boast features like “ready-to-move-in” conditions, “hotel-style services,” and “brand credibility,” with prices ranging from a minimum of 1500 yuan per month in first-tier cities to over 6000 yuan per month for the more premium options.
The main logic is this: The traditional hotel industry has reached a ceiling in terms of competition; it’s becoming difficult to open new hotels or increase prices at existing ones, leading to weak growth. While the long-term apartment market is crowded, it is less institutionalized (most apartments are still managed by individual landlords), and investment interest is on the rise. Hotel groups are trying to use their expertise in “standardized operations” and “brand trust” to capture this market and find new sources of profit.
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II. In-Depth Analysis: Understanding This “Cross-Industry Move” from Five Perspectives
1. Why Are Hotel Owners Entering the Rental Business? (Background and Motivation)
In one sentence: The hotel industry is facing intense competition, and if they don’t find new ways to grow, they risk failing.
- Hotel Industry Saturation: According to data, the number of hotel rooms nationwide has reached a record high, with a severe oversupply. The days of making money by opening new hotels are over; the revenue per room (RevPAR) at existing hotels is either stagnant or declining. Hotel groups urgently need new sources of growth.
- **Long-Term Apartments as a “Blue Ocean” within a “Red Ocean”: Although there are many companies in the long-term apartment sector (such as Vanke, Longfor, Ziru), the institutionalization rate in China’s housing rental market is only 8%-10%. This means that most apartments are still managed by individual landlords, leading to chaotic management and poor services. In contrast, in Europe, America, and Japan, this rate is 35%-80%. There is significant room for improvement in making rental services as professional and standardized as hotel services.
- Positive Investment Trends: In 2025, the volume of large-scale transactions in the long-term apartment market in Shanghai and Beijing exceeded 11.3 billion yuan, reaching a new high. Capital sees potential in this industry, and hotel groups, with their financial resources, brands, and operational experience, are naturally interested in participating.
2. What’s the Difference Between Hotel Apartments and Traditional Rentals? (Product Comparison)
In one sentence: The extra money you pay buys convenience and prestige, but not necessarily better quality of service.
Advantages:
- Convenience: You sign a direct contract with the landlord, avoiding complications with sub-landlords.
- Safety: 24-hour security and night patrols, which are superior to those in older residential areas.
- Services: Repairs are quick when something breaks, and some apartments offer services like robot-powered delivery and gyms.
- Brand Credibility: Huazhu and Jinjiang are well-known brands, reducing the risk of being stranded, with uniform decoration and a more modern, clean appearance.
Disadvantages:
- Higher Prices: Hotel apartments are usually more expensive than similar rental properties in the same area.
- Water and Electricity Costs: Many apartments use commercial water and electricity, which is much more expensive than residential rates, leading to significant additional expenses over the long term.
- Service Reduction: Don’t expect daily cleaning; you may need to pay extra for cleaning services (e.g., 45 yuan per hour), and not all apartments have these amenities or gyms.
- Living Experience: Sound insulation might be poor, and there might be no natural gas for cooking, lacking the feel of a home.
3. Who Is Competing for This Market? (Competitive Landscape)
In one sentence: This isn’t just a battle between hotel groups; it’s a full-scale competition.
- Traditional Real Estate Companies: Vanke (Boyu) and Longfor (Guanyu) have already entered the market, with a large number of properties and close partnerships with internet companies.
- Internet Platforms: Ziru and Beike control a vast number of individual rental properties and are expanding through “managed rental” models, with strong lightweight asset operations.
- State-Owned Enterprises/Urban Development Companies: They have a large number of “guaranteed rental housing” properties, giving them a competitive advantage in terms of policy support and more affordable prices.
- International Hotel Groups: Marriott, Accor, and Hyatt are also accelerating their presence in the Chinese long-term apartment market, targeting high-end customers.
- Hotel Groups (Huazhu, Jinjiang): Their strengths lie in brand credibility and standardized operations. However, they lack experience in managing long-term apartments and may struggle to maintain their brand premium in the mid-to-low-end market.
4. Can Hotel Groups Win? (Challenges and Risks)
In one sentence: Simply applying hotel models to rentals won’t work.
- Different Customer Groups: Hotel guests are transient and less price-sensitive, focusing on experience; long-term apartment tenants are more price-sensitive and look for value for money and comfort. High premium strategies don’t work well in this market.
- High Degree of Customization: Long-term apartments are highly dependent on location and specific properties, making standardized management difficult.
- Low Profits: The management fees for long-term apartments are lower than those for hotels, and there’s significant pressure on rent prices. Hotel groups, accustomed to higher margins, may struggle with the lower profits in this market.
- Unreached Product Development: Most of the long-term apartment products from hotel groups are still in the early stages; for example, many of Huazhu’s Chengjia apartments were opened between 2018 and 2020, representing older products. The new “service-oriented apartment” strategy is just beginning to take shape.
5. Where Are the Future Opportunities? (Trends and Suggestions)
In one sentence: Don’t just focus on price; instead, target specific customer groups and explore hybrid models.
- High-End Market Opportunities: There’s potential in the high-end market, providing “hotel-style” long-term stays for corporate executives and luxury individuals, where international brands and Huazhu’s premium lines can compete.
- Combining Long- and Short-Term Rentals: Don’t limit yourself to either; use existing hotel properties to develop “travel accommodation” products that appeal to people on job assignments, digital nomads, and those with frequent job changes. These users need the flexibility of hotels and the stability of long-term rentals.
- Product Innovation: Future successful products will combine residential water and electricity, dining and fitness facilities on-site, quick repairs, and shared hotel services. Simply labeling an apartment as a “hotel apartment” and charging more won’t be enough.
- Target Customer Groups: Young white-collar workers living near subway stations in first-tier cities and corporate tenants in industrial parks are key targets.
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III. Suggestions for the General Public
1. If you have a budget and seek convenience and safety: Consider long-term apartments from brands like Huazhu or Jinjiang, especially those with service-oriented features. Make sure to clarify the nature of the water and electricity usage (residential or commercial) and the cost of cleaning services.
2. If you value cost-effectiveness and a home-like experience: Traditional agents or platforms like Ziru may be more suitable. Compare prices with nearby properties to avoid paying extra for brand prestige.
3. If you’re on a job assignment or looking for a short-term solution: Hotel groups’ “travel accommodation” products offer good flexibility and brand reliability.
4. Be wary of commercial water and electricity: This is a significant hidden cost in long-term apartments. Make sure to understand this before signing the contract and calculate the potential additional electricity expenses.
In summary: Hotel groups entering the long-term apartment market is a natural outcome of intensified industry competition. However, it’s not just a simple strategic shift; it requires redefining products and understanding customer needs. For tenants, this offers more choices, but they need to be discerning about what they’re paying for—whether it’s the brand or the living experience.