Quhuo's Homestay Sector Reports YoY Growth in Occupancy Rate During Labor Day Holiday, Continuing to Enhance the Accommodation Experience

Rhea-AI Summary

Quhuo Limited (NASDAQ: QH) reported strong performance in its homestay sector, Chengtu Home, during the 2025 Labor Day holiday. The company achieved an 82% overall occupancy rate, up 4% year-over-year, with peak single-day occupancy exceeding 90%. Chengtu has enhanced its offerings with specialized room types including E-sports, cinema, and family-friendly options, while launching a WeChat mini-program for improved booking experience. The platform is expanding its capabilities by analyzing user data to help hosts improve service quality and implementing a standardized management system while maintaining local cultural elements. The company's strategy focuses on opening its platform to more domestic homestay hosts, providing management tools and marketing support to create a sustainable homestay ecosystem.

Positive

• Achieved 82% occupancy rate during Labor Day holiday, up 4% YoY
• Single-day occupancy peak exceeded 90%, showing 3% YoY growth
• Successfully launched self-developed WeChat mini-program for seamless booking experience
• Expanded service offerings with specialized room types catering to different customer segments

Negative

• None.

Insights

Hospitality & Tourism Analyst

Quhuo's homestay division shows modest growth with 82% occupancy (+4% YoY), reflecting successful platform enhancements and market adaptation.

Chengtu Home's 82% occupancy rate during the 2025 Labor Day holiday represents a 4% year-over-year improvement, with peak single-day occupancy exceeding 90% (3% YoY growth). These metrics, while positive, show incremental rather than explosive growth in a market that grew overall trips by 6.4% according to China's Ministry of Culture and Tourism.

The company's strategic pivot from pure management services to becoming a specialized homestay platform creator is particularly noteworthy. Chengtu has expanded beyond traditional lodging by developing themed accommodations (E-sports, cinema, family-friendly) that target specific customer segments - a differentiation strategy that addresses the growing consumer demand for "slow-paced" and "immersive" travel experiences.

Their September 2024 launch of a proprietary WeChat mini-program represents a significant technological advancement, creating an end-to-end booking ecosystem that could enhance customer acquisition costs and retention. By bringing these capabilities in-house rather than relying on third-party booking platforms, Chengtu gains valuable first-party data on user preferences while potentially improving margins by avoiding commission fees.

The company's dual focus on standardization (consistent quality) and localization (regional cultural elements) shows sophisticated market positioning. Their Xishuangbanna properties exemplify this approach, incorporating local design elements that create authentic experiences while maintaining service standards.

However, investors should note the company faces the classic marketplace growth challenge: scaling inventory (adding more hosts) while maintaining quality and user experience. The press release suggests Chengtu is navigating this through standardized management tools and marketing support for hosts, but execution will be key to sustaining growth.

BEIJING, May 30, 2025 /PRNewswire/ --Quhuo Limited (NASDAQ: QH) ("Quhuo" or the "Company"), a leading gig economy platform focusing on local life services in China, announced the performance of its homestay sector, Chengtu Home ("Chengtu"), during the 2025 Labor Day holiday. The overall occupancy rate reached 82%, an approximately 4% increase compared to the same period last year. The single-day occupancy peak surpassed 90%, showing approximately 3% year-over-year growth.

According to China's Ministry of Culture and Tourism, domestic travel reached 314 million trips during the 2025 Labor Day holiday, up 6.4% from last year. As travel preferences become more diverse, many travelers are now seeking "slow-paced" and "immersive" experiences, focusing on local culture, landscapes, and lifestyles. Unlike traditional hotels, homestays, which focus more on local charm and personalized touches, have become a popular choice, driving sustained growth in demand for this type of accommodation.

In response to this trend, Chengtu has been upgrading its offerings and platform, and continually expanding its homestay offerings. With more flexible and personalized offerings, Chengtu aims to meet the diverse needs of travelers. Chengtu offers a variety of room types, including comfort care, E-sports, business travel, family-friendly, cinema, and serene comfort rooms, each designed for specific groups. For example, the family-friendly rooms are equipped with child-safe furniture, toys, and books, creating a safe and fun space for families. The cinema rooms are equipped with a viewing area with sofas and projection equipment, providing movie lovers with a private viewing experience.

While upgrading the accommodation experience, Chengtu is also expanding its platform capabilities. In September 2024, Chengtu launched its self-developed WeChat mini-program, creating a seamless process from property search and communication to booking and payment. Users can easily filter properties based on location, distance and price, and directly communicate with hosts in real time. By leveraging its own platform, Chengtu aims to better understand user preferences and gradually improve the membership system for both hosts and users, with the goal of further enhancing the overall user experience.

At the same time, Chengtu is deepening its collaboration with hosts. Online, Chengtu's platform analyzes user data, such as booking preferences, conversion rates, and repeat booking rates to help hosts improve their response efficiency and customer satisfaction. Offline, Chengtu ensures service consistency through a standardized management system, while empowering local hosts with greater autonomy. Hosts can customize space design and services to reflect local features, thereby enhancing homestay experience with regional and cultural depth. For example, in Xishuangbanna, a tropical region in southern China known for its ethnic diversity and lush landscapes, homestays incorporate local elements, using vintage-style decorations like banana leaves and bamboo furniture to create a tropical atmosphere, immersing guests in the local culture.

Chengtu's next strategy is to open its platform to more domestic homestay hosts, offering standardized management tools and marketing support to help them improve efficiency. With continuous optimization and service upgrades, Quhuo believes it may attract more hosts over time. This strategy reflects Chengtu's shift from a homestay management service provider to a creator of specialized homestay offerings, with the goal of achieving scalability without compromising service quality. By building an operational system that balances efficiency and warmth, Chengtu seeks to explore an organic integration of industry standardization and local adaptation, aiming to build a sustainable homestay ecosystem.

Tong Ji, the General Manager of Chengtu, said: "The improvement in Chengtu's performance during the Labor Day holiday—reflected in both the overall occupancy rate and the peak single-day occupancy rate—demonstrates our ongoing focus on product innovation and technology upgrades, as well as our commitment to meeting the needs of both consumers and hosts. Moving forward, we will continue to refine our offerings and optimize platform services to better meet the diverse needs of our users, while enhancing flexibility and personalization to provide more unique and tailored accommodation experiences."

Leslie Yu, Founder, Chairman, and CEO of Quhuo, stated: "Chengtu's performance reflects Quhuo's commitment and progress in the homestay sector. By leveraging technology and refining our business model, we've not only improved platform efficiency but also provided greater operational support for hosts, aiming to balance industry standardization with local adaptation. Moving forward, we will continue to integrate technology and resources to enhance the quality of our products and services, better meet the diverse needs of consumers and hosts, and support sustainable growth in the homestay sector."

About Quhuo Limited

Quhuo Limited (NASDAQ: QH) ("Quhuo" or the "Company") is a leading gig economy platform focusing on local life services in China. Leveraging Quhuo+, its proprietary technology infrastructure, Quhuo is dedicated to empowering and linking workers and local life service providers and providing end-to-end operation solutions for the life service market. The Company currently provides multiple industry-tailored operational solutions, primarily including on-demand delivery solutions, mobility service solutions, housekeeping and accommodation solutions, and other services, meeting the living needs of hundreds of millions of families in the communities.

With the vision of promoting employment, stabilizing income and empowering entrepreneurship, Quhuo explores multiple scenarios to promote employment of workers, provides, among others, safety and security and vocational training to protect workers, and helps workers plan their career development paths to realize their self-worth.

Safe Harbor Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding Quhuo's business development, financial outlook, beliefs and expectations. Forward-looking statements include statements containing words such as "expect," "anticipate," "believe," "project," "will" and similar expressions intended to identify forward-looking statements. These forward-looking statements are based on Quhuo's current expectations and involve risks and uncertainties. Quhuo's actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties related to Quhuo's abilities to (1) manage its growth and expand its operations, (2) address any or all of the risks and challenges in the future in light of its limited operating history and evolving business portfolios, (3) establish in its competitive position in the on-demand food delivery market or further diversify its solution offerings and customer portfolio, (4) maintain relationships with major customers and to find replacement customers on commercially desirable terms or in a timely manner or at all, (5) maintain relationships with existing industry customers or attract new customers, (6) attract, retain and manage workers on its platform, and (7) maintain its market shares in relation to competitors in existing markets and its success in expansion into new markets. Other risks and uncertainties are included under the caption "Risk Factors" and elsewhere in the Company's filings with the Securities and Exchange Commission, including, without limitation, the Company's latest annual report on Form 20-F. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Quhuo undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

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SOURCE Quhuo Limited

FAQ

What was Quhuo's (QH) occupancy rate during the 2025 Labor Day holiday?

Quhuo's homestay sector achieved an 82% overall occupancy rate during the 2025 Labor Day holiday, representing a 4% increase year-over-year, with peak single-day occupancy exceeding 90%.

What new features has Chengtu Home introduced to improve customer experience?

Chengtu has introduced specialized room types including E-sports, cinema, and family-friendly options, and launched a WeChat mini-program for seamless booking and payment processes.

How is Quhuo (QH) expanding its homestay platform?

Quhuo is opening its platform to more domestic homestay hosts, offering standardized management tools and marketing support while maintaining local cultural elements in properties.

What technology improvements has Quhuo's Chengtu implemented?

Chengtu launched a WeChat mini-program for property search and booking, and implements data analysis to help hosts improve response efficiency and customer satisfaction.

How does Chengtu Home incorporate local culture into its properties?

Chengtu allows hosts to customize space design and services with local elements, such as using traditional decorations like banana leaves and bamboo furniture in tropical regions like Xishuangbanna.