Trendy business: esports hotels

Hotels that provide gaming infrastructure are becoming popular among young people in China, Yang Feiyue reports.

Yan Ke had a great time with her friends at an esport hotel in Hunan province during her recent winter vacation.

"Although we all can play at home, it's much nicer to play esports with friends face to face," says the 20-year-old who is studying in a college in the provincial capital Changsha. "After all, it gets a bit lonely on your own."

Yan started exploring such hotels in 2020, and has been to several in Hunan and Chongqing. She made the shift from local internet cafes, which she says "were noisy and crowded with strangers, some of whom even smoked (indoor), and I felt very uncomfortable".

She says esport hotels offer computers with better performance and a good time with friends.

Yan and her friends even celebrated at an esport hotel after Edward Gaming became the first team from China to win the League of Legends World Championship by beating South Korea 3 to 2 in the finals on Nov 7.

"We were so excited," Yan says.

Yan and her friends also played popular esports at such hotels, such as the League of Legends.

"I usually stay with four to five of my friends in a room for two nights," she says. "When we are tired of playing, we can rest, or play mahjong and other recreational activities available at esport hotels."

During this year's Spring Festival holiday, esport hotel bookings surged 80 percent as compared to the same period last year, according to the country's major travel agency trip.com Group.

Zou Feng got together with his high school friends in an esport hotel for a night when he returned to his hometown Guangzhou, Guangdong province, during the holiday. The man in his 30s works in Shanghai and has been playing esports after work.

"It was really a nice way for us guys to hang out and a nice extension of entertainment after our dinner," Zou says. "We could chat over the games, and it felt like the old times again."

China has become one of the largest markets for esports in the world.

China's esports market revenue increased from 94.7 billion yuan ($15 billion) in 2019 to 136.6 billion yuan in 2020, a year-on-year increase of 44.16 percent, according to the China Audio-Video and Digital Publishing Association. The number of esport players also saw steady growth last year, with the total reaching 666 million, up 0.22 percent over the previous year, says the 2021 game industry report of the association.

Esports, short for electronic sports, often take the form of organized, multiplayer video game competitions, particularly between professional players, individually or as teams. China's General Administration of Sport approved esports in the country's list of sports in 2003. Now, the strong growth in esports has fueled the rise of esport hotels in the country.

Esports hotels emerged in China in 2017 and have experienced rapid development over the past two years. In 2020, nearly 1,000 esport hotel-related enterprises were established, with an increase of 118 percent in registration growth over the previous year, according to the business information provider Tianyancha.

Last year, related business registrations broke 1,600, up 60 percent year-on-year. The number of esport hotels is expected to reach 15,000, according to an esport hotel market research report by the Suzhoubased travel agency Tongcheng Travel. The figure is expected to overtake 20,000 by 2023, the report adds.

About 68 percent of esport hotel customers are men, 44 percent of whom are under 26 years old.

Chongqing, Chengdu in Sichuan province, and Changsha are among the top cities with the most active esport hotel consumptions, according to the report.

Although personal computers are widely available in China now, and the internet speed has increased, esports players still prefer to go out and play games with friends. And as internet cafes are declining in China, the space for esport hotels has increased, bringing a higher level of entertainment to video game players.

Gaming rigs are the most important features of an esport hotel. In most such hotels, a room is equipped with two to five computers that run faster than garden-variety laptops for work, as well as professional headsets, race-simulator seats and high-quality computer screens. Bunk beds are put in place, making it possible to accommodate more people in a limited space.

Chen Yun closed his internet cafe and opened an esport hotel in Changsha after he sniffed a shift in consumption pattern in 2020.

"I heard my old customers complaining about smoking and noises in the cafe, which also took a hit due to the pandemic," Chen says.

He says he figured his hotel could cater to the demand of young people for a better gaming experience. Chen has enjoyed brisk business since then. "I made the right decision."

Esport hotel owners have also gone out of their way to get in the favor of their customers.

Another hotel, CJ in Shanghai, offers its users "privileges" based on paid use of facilities. If players play video games using the hotel's Wi-Fi, they enjoy free cosmetic options for a player's character on-screen, exclusive passes to game missions and some other experiences. The beds at CJ are height adjustable and customers can even enjoy a massage on them.

The goal of the esport hotels is to offer surprises that are hard to come by while playing at home or in internet cafes, giving players the incentive to visit the hotels, experts say.

Electronic Sports iHotel arranges monthly and quarterly matches to spice things up, says hotel owner Yuan Yang. Guests and employees can all participate in the competitions and have the chance to win prize money or hotel coupons. The hotel has made game-friendly pajamas, so players feel no restraint in moving around.

Many hotels have also put game elements in the room design, so customers can be "immersed" in the gaming environment. Special effects photography featuring green screens for customers to take selfies is also available.

However, the growth of the industry comes with problems. The quality of service varies because some owners had traditional hotel business or internet cafes and don't know how to run a hotel that caters to esports.

The expanding market has prompted tougher industry supervision. In June, the Nanjing culture and tourism bureau clarified the nature and management of esport hotels. In October, Henan province's Xuchang city launched esports hotel inspections to ensure no underage customer is allowed to enter.

"The industry will surely be increasingly standardized," says Ma Jing, a game industry expert.

Yan, the player from Hunan, likes the affordable price of esport hotels, she says. "We each only had to pay about 100 yuan a night. The fun time I had with my friends was worth the price."

When asked if esports could get in the way of her college studies, Yan says that's just a diversion, like many other recreational activities such as shopping or karaoke. "I believe there's a reason why you have to be an adult to enter an esport hotel. Everything is about self-control."