Pushed by Atour, the local giant Jinjiang Hotels makes a second push into Hong Kong stocks, with last year's revenue of 13.8 billion yuan.

                        Nearly nine months later, Jinjiang Hotels has now adjusted the purpose of its journey toward an IPO in Hong Kong.                        

The “giant” of the hotel industry launches a sprint toward an IPO on the Hong Kong Stock Exchange.

Image source: pixabay

On March 27, Jinjiang Hotels (600754.SH), the hotel group with the largest chain-hotel footprint in China, submitted its listing application to the Main Board of the Hong Kong Stock Exchange. The sponsor was Orient Securities International.

This is Jinjiang Hotels’ second attempt to go public in Hong Kong. If it succeeds in listing on the H Shares, it would become the first hotel group in China to achieve an “A+H” listing.

The prospectus shows that, as of December 31, 2025, Jinjiang Hotels has 14,132 hotels that are already in operation and 1,368,057 rooms that are already in operation; among them, 613 are owned and leased hotels, and 13,519 are franchised and managed hotels; in addition, there are 4,083 hotels under construction reserved for future opening.

It is understood that Jinjiang Hotels currently includes 12 core brands: Jinjiang Inn, Days Inn, Baiyulan, Vienna Hotel, Vienna International, LARQ, Lily, Kyriad, Campanile, Zekai Fei, Xixian, and IU; and 3 mid-to-upscale brands: Jinjiang City, Lirui, and Libai.

As China’s hotel industry enters stock-based competition, Jinjiang Hotels’ revenue has declined slightly over the past three years. In 2025, Jinjiang Hotels recorded total revenue of RMB 13.81 billion, a year-on-year decrease of 1.8%. Jinjiang Hotels explained in its prospectus that the revenue decline was mainly due to shutting down some owned and leased hotels, as well as a decrease in RevPAR.

In 2023, 2024, and 2025, Jinjiang Hotels’ profit during the year was RMB 1.28 billion, RMB 1.14 billion, and RMB 990 million, respectively, with net profit margins of 8.7%, 8.1%, and 7.2%, respectively. Jinjiang Hotels said the decline was attributable to a decrease in non-recurring income mainly from asset sales, and a revenue drop caused by unfavorable current market conditions.

From several major core indicators as well, it can be seen that Jinjiang Hotels faces some pressure in operating its main business.

In 2025, for the domestic hotel segment, Jinjiang Hotels’ full-year occupancy rate was 64.6%, down 0.6 percentage points from 65.2% in 2024. Within this, the occupancy rates for upscale-and-above, mid-to-upscale, and mid-tier hotels all declined to varying degrees, while occupancy for economy hotels rose from 59.4% to 60.5%.

Compared with occupancy, the declines in ADR and RevPAR are even more pronounced.

In 2025, Jinjiang Hotels’ domestic hotel segment ADR (average daily room rate) was RMB 239, down RMB 5.3 from 2024, representing a decline of about 2.2%. RevPAR (average revenue per available room) recorded RMB 154.4 for the full year, down RMB 4.8 from 2024, a decline of about 3%. Driven by the dual decline in both occupancy and room rates, RevPAR for upscale-and-above hotels saw the largest drop, falling from RMB 250.6 to RMB 234.1, a decline of 6.6%.

This is consistent with the current trend of the overall domestic hotel industry. In 2025, amid intense stock-based competition in the hotel industry, most hotels are experiencing a situation of “increasing revenue but not increasing profits.” For example, Huazhu Hotels and Atour Group have seen declines in both occupancy and RevPAR.

Jinjiang Hotels’ overseas business is also drawing considerable attention.

At present, the Louvre Hotels Group in France is an important part of Jinjiang Hotels’ overseas business, and one of the results of its early expansion abroad. In 2015, Jinjiang Hotels’ predecessor, Jinjiang Group Co., Ltd., fully acquired the Louvre Hotels Group in France, which is under the Starwood Hotels group, for EUR 1.288 billion, thereby entering the European market in an all-around way and quickly ranking among the top 8 hotel groups globally.

The prospectus shows that the contribution of Jinjiang Hotels’ overseas business is currently close to 30%. In full-year 2025, Jinjiang Hotels’ overseas business achieved operating revenue of RMB 3.85 billion, down 9.6% year on year. It accounted for 27.9% of total revenue. Meanwhile, all three key operating hotel indicators for the overseas business declined, while the economy segment experienced the most significant decline among overseas segments.

Jinjiang Hotels explained in the prospectus that the revenue decline was mainly due to the Olympics in France in 2024 boosting the baseline, and renovations and upgrades to rooms in several hotels last year.

However, Jinjiang Hotels’ overseas business has not yet contributed positive profits smoothly. According to earlier financial reports, the Louvre Group has been in losses for multiple consecutive years since 2020, and in 2024 recorded a net loss of EUR 10.79 million.

Worth noting is that after its first attempt to launch an IPO in Hong Kong in June last year, nearly nine months later, Jinjiang Hotels has adjusted the purpose of its journey toward an IPO in Hong Kong.

Last year, in a board resolution, Jinjiang Hotels clearly stated that after deducting relevant issuance expenses, the proceeds from the issuance of H-share-listed stocks were intended to be used for further strengthening and expanding its overseas business, repaying bank loans, replenishing working capital, and so on.

Earlier, on March 9, Jinjiang Hotels’ board of directors approved the resolution on “Adjusting the Company’s Use Plan for Proceeds from Its Overseas Public Issuance of H-share Stocks.” It mentioned that, considering the company’s business development needs and the overall progress of the H-share issuance and listing work, the board agreed that after deducting relevant issuance expenses, the proceeds from this H-share listing would be adjusted for overall digital integration transformation, repayment of bank borrowings, acquisitions of relevant high-quality targets, working capital and general corporate purposes, among others.

Compared with last year’s use of proceeds, the core adjustments in this Hong Kong IPO fundraising plan新增 two new directions: “overall digital integration transformation” and “acquisitions of relevant high-quality targets.” At the same time, “overseas business expansion” would no longer be listed as a special-use purpose for fundraising, indicating that this hotel giant may have new thinking in terms of its business development priorities and capital-operation strategy.

With Huazhu and Atour playing catch-up, Jinjiang, a veteran hotel group, may hope to maintain its competitive position by following the road of capital.

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