Certainly, it’s because of the lower tier cities penetration as well as further enhance our presence in our previously weak market, including the southern part of China, western part of China, and the middle part of China. This is the benefits from our organizational restructuring and further strengthening our business development capability on the ground. Currently, these three previously weak regions contributed more than 40% of our new signings year to date. And lastly, it is further breaking through into the upper mid segment and mainly because of the InterCity brand, as well as the Crystal Orange brand as I mentioned previously in our prepared remarks and also presentation. And we are strongly confident on the further breakthrough and increased market share for this particular segment.
In terms of the second questions on the RevPAR trend. So for the October, this is pretty normal seasonality, because normally post the Golden Week holiday, there was a low season following. So this is a normal seasonality impact. And for the entire fourth quarter, we are expecting the RevPAR recovery to be in range of 115% to 120% compared to the same period of 2019.
Simon Cheung: [Foreign Language]
Operator: The next question comes from Sijie Lin from CICC. Please go ahead.
Sijie Lin: [Foreign Language] So, thank you management. You have been to some low-tier cities to do some field research. So could you please share with us your main observations which make you feel that there are lots of opportunities in low-tier cities? And in order to seize the low-tier market opportunity, we have established regional headquarters and is there any other capability that we need to strengthen? Thank you.
JIN Hui: [Foreign Language] [interpreted] Okay. So clearly, despite the urbanization rate have already achieved over 65% this year, we’re still seeing that there’s further urbanization progressing in the lower-tier cities and we’re also seeing the population actually is also increasing in the lower-tier cities. Addition to that, the high-speed railway trend further development, as well as the highway networks further expanding, and we were seeing the number of passengers transported by the high-speed railway trend this year achieved a historical high. This is mainly supported by a lot of government efforts on stimulating the domestic demand which increased a lot of population mobilities demand. And for the lower-tier cities, we also observed that it is really a high resilient market and more importantly, the lower-tier cities contain over 1 billion population.
We think still there is a lot of huge opportunities to further discover. And as a leading company, H World is striving to further providing good products and service to match the demand for better accommodations in the lower tier cities. Okay. So the organizational restructuring is definitely creating some of the benefits and in line with our lower-tier cities penetration strategy. So basically, we want to be more close to our customers and more close to our franchisees and to be more localized. Because especially for the franchisees side, we are seeing a lot of new franchise — new type of franchisees. Basically, some of them are self-owned properties, some of them are local small and middle property developers, as well as some of the business owners.
We want to be close enough to them and understanding their demand as well as our customers.
Sijie Lin: [Foreign Language]
Operator: Your next question comes from [Duvai Lui] (ph) from [Citi] (ph). Please go ahead.
Unidentified Analyst: [Foreign Language] Let me translate my question in English. We notice in the city it’s gaining traction among franchisees. So could you tell us more about the current business situation such as ADR, RevPAR? Besides, can you share what cities are the distribution of InterCity in the pipeline? And what are the features of franchisees? Thank you.
JIN Hui: [Foreign Language] [interpreted] Okay, thank you. Just to answer your questions, thanks for focusing on our InterCity brand. Since we launched last year and opened several leased InterCity hotels in several cities, so for this already opened hotel, given the scale is relatively small, we don’t think it is suitable for now to compare or to release the ADR or RevPAR to the market at this moment because it is quite selective and we have only several InterCity hotels in operation. But if you really want to talk about these hotel’s operational data, so all the ADRs and RevPARs have been already doing better than our competitors. But we are very confident to see the brand is getting more accepted and [award] (ph) by our franchisees and the market.
And for the franchisees, we are seeing definitely a different type of franchisees compared to our limited service segment. There are two type of franchises. One is definitely the industry-leading franchisee because the IntercityHotel requires a relatively big amount of CapEx investment. So a single InterCityHotel requires around RMB30 million to RMB50 million in CapEx. So only those very much leading position — leading franchisees can afford that much CapEx. And second, we also see a lot of property developers or local property developers and property owners which used to doing business with those international brands are now finding us — as InterCity to be a substitute, because we are definitely leading in terms of the operational capability.
Unidentified Analyst: [Foreign Language]
Operator: There are no further questions at this time. I will now hand back to Mr. Chen for closing remarks.
Jason Chen: Thank you, everyone, for taking your time with us today and we look forward to see you in upcoming quarter. Thank you. Bye-bye.
Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.
