Economic March of Mid-range Hotels

Economy hotel is the fastest growing hotel industry in China in the past few years, and it is also the market that capital pays attention to. There have been many changes and controversies in this market recently. Continue to expand stores and take the economical chain route, or transform and upgrade to be a mid-range hotel? Will the era of rapid development of budget hotels end? Recently, Sun Jian, CEO of Home Inn, and others discussed new opportunities for the development of mid-range chain brands with the theme of "local mid-range chain hotels, accelerating the brand era" at the 9th 2 1 century hotel summit forum.

The "bottleneck" of budget hotels is a misunderstanding.

Economy hotel is the fastest growing hotel industry in China in the past few years, and it is also the market that capital pays attention to. There have been many changes and controversies in this market recently, and the development speed seems to be stagnant. Some people worry that the golden age of budget hotels is over. In this regard, Sun Jian corrected: "First, budget hotels still have very broad prospects and cannot develop as they are now called. In the past 10 years, several of our partners worked together to make them add up to about 4,000 now, but compared with the market space of15,000, it will not be completed in another 10 years, so they are budget hotels.

Sun Jian pointed out that the strategic direction of Home Inns is still in budget hotels, which will not change in the next five to eight years. "We did encounter the cost problem, but this problem is a social problem, not a budget hotel problem."

As to why Home Inns proposed to be a mid-range hotel in 2009, Sun Jian said: "In 2008, I said that the cost of China was soaring. Can we create a profitable and sustainable business model in the rising cost stage? This is why in 2008, we will not go down for the time being, but go up and be in the middle. "

Sun Jian said, "Two years ago, I made a mistake. Maybe 10 years later, today's so-called mid-range hotel is the real economy hotel. 60% or 70% of our tourist source structure today are business people. Today, during the development of budget hotels in China, we have actually undertaken such responsibilities. The responsibility of business activities is even greater than leisure travel. Where is the real economy hotel market? We have been exploring. The situation of mid-range hotels today is similar to that of the budget hotels we made 10 years ago. The brand is not very strong, the scale is not very large, and the marketing platform of the overall consumer has not been established. "

Economy hotels should be transformed.

The key depends on market demand.

"Before 15, was there the concept of economy hotel? At that time, if we said budget hotels, it must be a gobbledygook. There were only guest houses at that time. Our times are progressing and our society is developing. /kloc-China 0/5 years ago was completely different from China now. /kloc-people who lived in hostels 0/5 years ago now live in five-star hotels, and everything is changing. " Zhao Li, senior vice president of Vienna Boutique Hotel Chain Group, pointed out that the average price of all hotels in Vienna is above 300 yuan, and the occupancy rate is above 90%. "According to the current performance, our mid-range hotel has more than 200 rooms. This occupancy rate shows how much our market needs. The market needs it, and so do our customers. Many of us learn from classic operators and investors. Have you thought about what our customers are asking for? They are also calling for hotels that are better than them, hotels that pay more attention to taste, and hotels that are more personalized and comfortable. This is the future development.

Liu Jun, general manager of Fantasia Hotel Management Company, believes that hotels must develop in the right direction. You have trained some clients, and he will follow you when you grow up. What Fantasia wants to do is to have no intention of PK with these big names, mainly to make products, of which hotels are part, and tend to be small and beautiful. No matter what you do, you can survive. It's nice that this one lasts. In fact, the first thing a boutique hotel should learn is how to survive from a budget hotel. If what you do can't survive, the capital market can't agree.