Related Articles
Hot Concern
Column list

Hotels under the mode of merger integration

From;  Author:
China's economy hotel industry into a merger of consolidation. China's economy hotel industry has expanded rapidly in recent years, large hotels is based on a more solid strength, good performance in recent years, the development, have plans to speed up the scale Expansion, while China and the general community of low-star hotels accounting for 63.96%, of which hotels accounted for only 11.46% of the structural imbalances, while small and medium hotels subject to capital, scale, brand, management, lack of development was In case the status of the bottleneck for the expansion of large hotels to provide a broad market, this time merger integration has become the ideal choice. International Experience: Based on the success of multi-brand franchise operations merger integration. Wyndham Hotel Group is the world's second largest hotel group, although large in scale, but its revenue from 2003 to 2008 the average annual compound growth rate of accommodation was reached 15.71%, higher than the U.S. industry average. Behind its rapid development, is its mid-range, in particular, the rapid economic growth of the hotel business, and in a manner that is through a series of merger integration, and the subsequent acquisition of the brand Multi-brand franchise operation. The core is to increase brand franchise franchise number of hotels. Licensed dealers must focus on building brand reputation to maintain, through a strong background support system for the franchisee to create value. Among them, the brand reputation, inter Brand marketing, but also broken down by brand, and strengthen quality control to highlight the characteristics of the brand positioning, to maintain the brand's image. Back office systems, in addition to operational training and staff training, a strong central booking system Reasonable and effective system and membership, are also increasingly paying attention for the franchisee. China's economy hotel industry based on the status and the successful experience of foreign countries, we believe that: First, determine the low switching costs in the short-medium and small hotels will be the most important large-scale economic integration objectives of the hotel. Secondly, the Chinese economy hotel industry as a whole in the growth stage, the new hotel is still the main means of expansion, and domestic small and medium hotels for M & A integration is only at the exploratory stage, it will be slower in the United States and other mature Market. Finally, capital market financing platform has four listed budget hotel chain (such as houses, Jinjiang, seven days, and the Han court) is expected based on capital, brand, management and channel integration during mergers and acquisitions in the future the upper hand, particularly Especially have started to explore the acquisition of the Road Jinjiang and Home. Jin Jiang Jin Guang our fast acquisition is a positive attitude. For the acquisition of gold is not only a wide and efficient investment, but also Jinjiang hotel industry on the economy as a model for future development and try to explore, from the mature foreign Experience, multi-brand operation is very important as a model, by comparison we find that stock-based Jinjiang China-based Wyndham Hotel Group worldwide in many key points are very similar, Wyndham Hotel Group Successful model for investors may consider the future development of Jinjiang road shares to provide some reference. Investment advice: Even without considering the merger integration performance of the company in the future for the important influence of the market alone is expected shares of Jinjiang, the total market value of nearly 150 million, a 20 times PE is 2.8 billion to Kentucky, nearly 15 million long- Jiang securities, Jinjiang Inn has 29 owned properties (estimated 20-30 million), expected market value of the current Jinjiang 80 billion and 140 billion in market value, such as nearly 70 million homes and seven days, 100 million phase of Han Ting ratio, there was underestimated.