According to data from the Ministry of Transport, total cross-regional passenger flows during the 2026 National Day holiday reached 2.144 billion trips, averaging 306 million trips per day, up 0.7% year on year.

On the other hand, grassroots channel checks show that domestic hotel industry RevPAR (revenue per available room) fell about 2% year on year.

Yicai's "Yi Rating" believes that demand in the hotel sector during this National Day holiday was relatively muted, with overall operations largely stable and broadly in line with pre-holiday expectations.

"Yi Rating" noted that the slight year-on-year decline in hotel industry RevPAR during the National Day holiday was mainly dragged down by a drop in occupancy (OCC), with specific factors including a more dispersed holiday structure that diverted customer sources, rainy weather in some regions, and oversupply in the hotel industry.

By contrast, average daily rate (ADR) held relatively firm, mainly thanks to continued improvement in the store mix of leading hotel companies.

Looking ahead to the fourth quarter, with the autumn break policy expected to be implemented and business demand projected to stabilize, hotel industry RevPAR is expected to be flat year on year.

Overall, against the backdrop of slowing demand growth in the broader hotel market, it is advisable to focus on names with strong alpha characteristics, as well as allocation opportunities created by the sector's low valuations.