The reasons for the formation of hotel groups

1. Economies of scale and resource integration: Hotel groups can achieve economies of scale by acquiring other hotel brands. Large-scale operation can reduce costs, improve efficiency and obtain better resource integration, such as procurement, technical support and marketing.

2. Expansion of brand influence and market share: Through the brand influence of hotel groups, the competitiveness of each brand in the market will also be improved. Hotel groups can use the complementarity of their brands to cover different market segments, thus expanding market share.

3. Capital investment and risk diversification: Hotel groups can invest more capital to build and expand new hotels. At the same time, multi-brand strategy can also reduce the risk brought by single hotel operation, because even if one brand has problems, other brands can still maintain operations.