JD.com shares hit four-month high after hospitality announcement
JD.com stock climbed to a four-month high on Wednesday after founder and chairman Liu Qiangdong unveiled plans to launch a new hotel development model by the end of 2024. Importantly, Liu emphasized that the company has no intention of igniting a price war in the hospitality sector.
Speaking at a company event on Tuesday, Liu explained that JD.com will leverage its powerful supply chain infrastructure to help hotel operators cut costs. Instead of competing on low prices, JD.com aims to provide high-quality back-end services to support sustainable growth, according to media reports.
Shares surge on pledge of sustainable model
Hong Kong-listed JD.com shares rose as much as 6.5% to HK$138.4 by 05:38 GMT, reaching their highest level since mid-May.
“We don’t want to drag the hospitality industry into a price war,” Liu said. He explained that if JD earns 1 yuan in profit, about 70% would stay with JD while the remaining share would go to partners. Half of that profit would be allocated to workers and the other half to sustainable development initiatives.
JD Travel momentum supports expansion
The announcement builds on the growing success of JD Travel, the company’s lifestyle and travel platform. Recently, JD.com introduced a membership program allowing hotel partners to join under a zero-commission model for up to three years, strengthening its position in the travel and hospitality market.
