Why China's High-End Hotels Are Setting Up Food Stalls Outside

As demand for banquets falls, hotels pivot to find new revenue streams in tough times

- Michelle Ng

ZHENGZHOU, Henan - On a sweltering 36 deg C evening, a man stood under a makeshift tent outside his hotel, scooping a Chinese summer delicacy into takeout boxes - piping hot xiao long xia, or crayfish - selling for just 38 yuan (S$6.80) per 500g.

Next to the man, who is the hotel's general manager, chefs in tall, white hats carved up roast ducks - 35 yuan for half and 60 yuan for a whole - for the streams of bargain-hunting customers.

The bustling scene outside the five-star Noble International Hotel, which has gone viral on Chinese social media, stood in sharp contrast to the subdued atmosphere inside the premises.

Although it was nearing dinnertime, the in-house restaurant offering an all-you-can-eat buffet for 258 yuan drew barely a handful of diners. In the marble-floored lobby, most of the people there were either seeking respite from the heat outside or digging into their takeaway meals.

Across China, from Hangzhou to Changsha, more high-end domestic hotels are swapping chandeliers for street lamps, setting up food stalls outside their doors to sell hotel-made dishes at bargain prices as their dining rooms sit empty.

These makeshift set-ups are a stark reflection of an industry under pressure, as consumers tighten their belts, demand for wedding banquets shrinks and a surge in new hotel openings outpaces the recovery in travel and dining.

An economic slowdown, a tight job market, high youth unemployment and a prolonged property slump have led many Chinese to cut back on their spending. Furthermore, an ageing population and a growing reluctance among young adults to marry have driven wedding numbers down.

In a fresh blow to the high-end hotel sector, which generates revenue partially from corporate functions and business banquets, Chinese authorities in May 2025 renewed a sweeping push for frugality, urging officials and state-owned firms to rein in extravagance and hospitality spending.