China’s hotel industry supply structure is stabilizing, with a widening gap between first-tier and second-tier cities, according to a recent Hohi report. In 2023, major cities like Shanghai and Beijing maintained their dominance with extensive high-end offerings, while new first-tier cities such as Chengdu and Hangzhou experienced rapid growth in high-end supply. Despite some improvements in second-tier cities, they lag top-tier cities in scale. The report also shows that cities with strong tourism appeal, like Changsha and Chengdu, have shown robust hotel performance, while those dependent on business travel, such as Shenzhen and Fuzhou, have struggled. Investment is increasingly focusing on the renovation and redevelopment of existing properties, especially in mature markets like Shanghai and Guangzhou, reflecting the shift towards enhancing asset value in a slowing supply environment.