Second- and third-tier city chain hotel market has huge growth potential

[Maidian.com] As of the second quarter of 2010, China currently has more than 340 economic chain hotel brands, with more than 4,000 stores. The most dense hotels in Shanghai, Beijing, Shenzhen, Hangzhou...

[Maidian.com] As of the second quarter of 2010, China currently has more than 340 economic chain hotel brands, with more than 4,000 stores. The number of hotels with the highest density of budget hotels in Shanghai, Beijing, Shenzhen, Hangzhou, Guangzhou and Nanjing has opened 1,508, accounting for 40.14% of the total number of budget hotels in the country; the total number of rooms is 171,830, accounting for the total number of budget hotels in the country. 41.62%.

In contrast, the number of hotel chains in China's second- and third-tier cities is relatively small, and development is relatively slow. Therefore, Shandong Xinghui Yinglian Hotel Management Co., Ltd. entered the second- and third-tier city chain hotel market in 2010, and fully developed the city 118 chain hotel brand. The involvement of the City 118 Chain Hotel has re-established a good reputation for the hotel chains in the second and third tier cities, injecting a fresh blood into the hotel industry.

The continued growth and transformation of domestic tourism has urged the rapid growth of budget hotels in second and third tier cities. Shao Qiwei, director of the National Tourism Administration, said at the 2010 National Tourism Work Conference that conditional cities will formulate tourism plans for urban leisure vacations. The National Tourism Administration will strengthen cooperation with relevant departments to launch demonstration products such as rural tourism, cultural tourism, sports tourism, eco-tourism and characteristic tourist towns. The expected target of tourism development in the whole year is that the number of domestic tourists is 2.15 billion person-times, an increase of 13%, and the domestic tourism income is 1.15 trillion yuan, an increase of 13%. At the same time, it accelerates the cultivation of tourism consumption hotspots and promotes the development of second- and third-tier cities and satellite city leisure and holiday tourism. To meet the growing spending power of second and third tier cities.

At the same time, budget hotels in first-tier cities generally have a capital requirement of more than 6 million yuan, and the size of a single store is generally between 3000-6000 square meters, 80-130 rooms, and each single store has to pay about 300,000 yuan. The franchise fee for the left and right. The payback period is generally around 6 years. For the economic hotel brand in the second and third tier cities, the city 118 chain hotel is an example. The city 118 chain hotel has a single store size of 1400-5000 square meters, the number of rooms is 40-135, and the cost of each single store is about 10 About 10,000 yuan, and the capital recovery cycle is generally controlled within 3 years. Therefore, both the return on investment and the market show that there are huge growth potentials in second- and third-tier city chain hotels.

However, the brand selection of second- and third-tier city chain hotels needs to be very cautious. The person in charge of the city 118 chain hotel said that some hotel chains are not responsible for the franchisees' franchise fees and other expenses, and some franchisees who do not meet the requirements are allowed to join. As a result, the franchisees suffer heavy losses, so the city 118 hotel chain reminds The majority of franchisees, choose the brand to be carefully considered, so as not to cause losses. (brand pass)

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