How to choose a hotel listed company

The sustained development of domestic economy and tourism has promoted the rapid growth of hotel industry. Take star-rated hotels as an example. From 2000 to 2005, the number of star-rated hotels in China increased from 6,029 to 1 1828, with an average annual growth rate of 14.4%, and the number of guest rooms in star-rated hotels increased from 73.45 million to1330,000, with an average annual growth rate of/kloc. The data shows that excluding the impact of SARS in 2003, the occupancy rate of star-rated hotels has steadily increased from 200 1 year, from 58.45% in 200 1 year to 60.96% in 2005. With the rising occupancy rate of star-rated hotels, the average daily house price level is also rising. China hotel industry is one of the earliest industries that opened to the outside world, and its huge market space has attracted world-renowned hotel management groups to invest in China. At present, world-renowned hotel groups such as Intercontinental, Shengteng, Marriott and Accor have entered the hotel market in China. In terms of positioning, foreign hotel groups' previous investments in China were mainly concentrated in high-end hotels. With the advantages of capital, brand and management level, foreign hotel groups quickly occupied the domestic high-end hotel market. Jinling Hotel is the only one among the "Top Ten Most Popular Business Hotels in China" selected by the 3rd China Hotel Golden Pillow Award in 2005 and managed by a domestic hotel group. Although foreign hotel groups have a monopoly advantage in the domestic high-end hotel industry, we also see that some local hotel groups have made great progress in brand, capital and management level, and began to export high-end hotel management services. Among the listed companies, Jinjiang (600754) and Huatian Hotel (000428) are such representatives, and Jinling Hotel (60 1007), the representative of local high-end hotels, has also made expansion plans to show its strength in the high-end hotel market. The occupancy rate of middle and low-grade hotels has obviously rebounded, and the growth charm of budget hotels is infinite. Further analysis of the data of star-rated hotels shows that the occupancy rate of high-star hotels, including 4-star and 5-star hotels, has remained at a high level with little change. In contrast, the rental rate of low-star hotels has risen sharply, which deserves special attention. In 2005, the occupancy rate of 1, 2/and 3-star hotels increased by 3.27%, 3.76% and 0.87% respectively compared with 1 in 2006. This may just reflect that a large part of the increase in the number of tourists in China in recent years has benefited from the increase in business activities of small and medium-sized enterprises and the rising demand for leisure tourism of middle-income groups. These customers are sensitive to the hotel price and have certain requirements for the hotel's hygiene, safety and comfort. Low-end star hotels are more in line with their needs. At the same time, this demand has also promoted the rapid growth of domestic budget hotels. Economy hotels provide customers with cost-effective room service. On the one hand, based on the chain standardized service, it provides customers with clean, safe and comfortable room service to meet the core accommodation needs of tourists. On the other hand, by reducing non-essential facilities, the investment cost and house price are reduced. Compared with ordinary star-rated hotels, budget hotels can completely meet the most basic accommodation needs of customers, and the price is more advantageous. Therefore, budget hotels are favored by the majority of low-end tourists. Due to the huge market space, domestic economy hotels are developing very fast. From the opening of Jinjiang Inn 1997, the first budget hotel, to the end of 2005, there were 50 brands of modern budget hotel chains in China market, with more than 600 hotels and 50,000 rooms. In 2005, the average growth rate of the top ten economic brands in the market was 74%. Judging from the market performance, the average occupancy rate of budget hotels in 2005 was 89%, which was far ahead of the average level of star hotels, and its RevPAR was 1.38 yuan, which was basically close to the level of three-star hotels. With the sustained development of China's economy, the business activities of small and medium-sized enterprises will further increase, and the increase of per capita income will also promote the increase of domestic residents' travel rate. Stimulated by these two factors, we believe that the trend of high growth of budget hotels can be sustained. By the end of 2005, there were more than 65,438 0-,2-and 3-star hotels with 980,000 rooms. At the end of the same year, there were only over 600 budget hotels in China, with 50,000 rooms, only 6% and 5. 1% of the former. Even if the proportion reaches 30% of the former, the scale of domestic budget hotels can increase by more than 400% under the condition that the scale of the whole domestic hotel market remains unchanged. If economic growth drives the expansion of the whole hotel industry, then budget hotels have great growth charm. Due to the huge growth space, Home Inns (NASDAQ: HMIN. US), the second largest budget hotel company in China, was sought after by investors when it was listed on NASDAQ. The issue price per share is as high as $65,438 +03.8, and the dynamic market P/E ratio calculated by half-year financial data is more than 60 times. At present, PE at market price has exceeded 150 times. Since then, the share price of Jinjiang Inn Group (2006.hk), which holds 80% of the shares of Jinjiang Inn, the largest economy hotel in China, has been rising since its listing in Hong Kong. At present, the share price has also risen by more than 100% compared with the issue price. Among the domestic listed companies, the listed companies involved in budget hotels include Jinjiang, Huatian Hotel, S * ST Qingfeng, CYTS and Jinling Hotel, and they have generally made ambitious development plans. As one of the earliest industries opened to the outside world, China hotel industry has experienced the baptism of fierce market competition and entered a new development period. But in the long run, free competition is still the main feature of the whole hotel market. Therefore, those leading enterprises that gradually establish competitive advantages in the competition are the first choice for investment. The competitive advantage of hotel industry may come from brand, service level, market differentiation and cost. Due to the different characteristics of customers, the competitive advantages of hotels of different grades will be different. For high-end hotel customers, they pay more attention to the brand and service level of high-end hotels and are relatively insensitive to prices. Therefore, cost control is not the focus of high-end hotels, but the establishment and maintenance of brands, geographical location, historical and cultural precipitation and hotel management service level have become the focus of the company. The competitive advantages of middle and low-end hotels mainly come from market differentiation and low cost. Compared with customers in high-end hotels, customers in middle and low-end hotels are more sensitive to price and service level. Only by establishing their own style and controlling costs can middle and low-end hotels find and maintain their own customer base. Similar to middle and low-end hotels, the competitive advantage of budget hotels mainly comes from low cost. For the customers of budget hotels, what they are most concerned about is the price on the premise of satisfying the core room service. Therefore, while providing core room service, reducing costs is the main means for budget hotels to establish competitive advantages. Among the listed companies, Jinling Hotel is the representative of high-end hotel companies. At present, its brand advantage in Nanjing is obvious, and it is also one of the best hotels in China, and it is the first choice hotel for Nanjing politicians and senior business people. Its customer loyalty is very high. At present, there are 35% permanent customers, and the customer return rate reached 6 1% in 2005. After the IPO, all the funds raised by Jinling Hotel will be used for the expansion project of Jinling Hotel. Upon completion, Jinling Hotel will mainly engage in the whole suite operation and high-end office leasing, further consolidating its leading position in the high-end hotel market in Nanjing. Jinjiang and Huatian Hotel are engaged in the investment and management services of high-end hotels. They have also accumulated a considerable level of brand and management services, and started to export hotel management services, which may also take a share in the high-end hotel market in the future. Compared with high-end hotels, the domestic economy hotel market is still in the early stage of development, which can be said to be an era of common rise. Prophets like Jinjiang Inn and Home Inns have established their first-Mover advantage, and all of them have obtained the funds needed for development through the capital market. At the same time, foreign hotel predators also aim at the domestic economy hotel market. For example, Super 8, a subsidiary of Santa Hotels Group in the United States, and Ibis, a subsidiary of Accor Hotels Group in France, have entered the China market and are actively staking out the land. Therefore, despite the huge market space, we believe that those economic hotel brands that have achieved the first-Mover advantage and established the scale effect are more likely to survive and develop.