I. Overview of the Economic-Type Hotel Industry in June
1. Latest Industry Developments
1) Home Inns & Hotels Management Inc. announced in the evening of June 30 that its wholly-owned subsidiary, Beijing Xinyandu Hotel Chain Co., Ltd., has raised self-funded capital of 25.48 million yuan to acquire a 65% stake in Shijiazhuang Yake Yijia Express Hotel Management Co., Ltd. through capital increase and equity acquisition.[Details]
2) 7 Days Inn Group plans to carry out a $250 million five-year refinancing deal, which has entered the general syndication stage, with Nomura Securities serving as the lead underwriter for this financing deal.[Details]
3) Ziroom COO Zong Xiangxin recently stated at the 2014 China Chain Hotel Development Forum that he is very optimistic about the medium- to long-term development of China's hotel market. The group aims to open four to five hundred new hotels annually, with the mid- to high-end positioned “Hanting” brand expected to reach 100 outlets next year, and a new mid- to high-end brand “HeMei” will be launched in the second half of the year.[Details]
II. Analysis of Economic-Type Hotel Brand Influence in June
1. Top 20 Economic-Type Hotel Brand Rankings
(2) Brand Analysis
Ibis is an economy hotel brand under the renowned French hotel group Accor, and is the leading economy hotel chain in Europe and the fourth largest in the world. As a leader in the economy hotel segment, Ibis has over 900 hotels across more than 40 countries and regions globally; in China, Ibis hotels are located in nearly 50 cities across 20 provincial-level administrative regions.
Ibis closely integrates the core of economy hotels—price—with service, proposing the concept of “providing modern hotel services at the most competitive local market prices.” This localization strategy, executed deeply within a global context, has successfully driven Ibis’s expansion in different markets and countries around the world. For the Chinese domestic market, Ibis has innovated and developed a franchise model. Under this model, the property remains owned by the hotel, and through agreement, Ibis provides ten years of management services. Hotel owners can expand their business on a solid platform while enjoying “brand loyalty.” Ibis offers comprehensive management services, including creative input, hotel construction, cost management, and human resource development.
High cost-performance is a major advantage of Ibis. Ibis provides high-standard, high-quality accommodation and services at highly competitive prices, including thoughtfully designed fully furnished guest rooms, round-the-clock key hotel services seven days a week, and on-site dining options. These highly competitive prices are not only reflected in reasonable pricing, but also remain consistent regardless of booking time or date; even lower promotional prices are available during different holidays.
The development of Ibis is part of Accor’s overall strategic plan. Accor’s philosophy in the hotel market, including that of Ibis, has deeply influenced Chinese hotel professionals. Ji Qi, founder of Huazhu, speaks very highly of Accor. Accor’s multi-brand operations, proactive consumer guidance, and love-for-life philosophy have also inspired many Chinese hotel professionals, including Ji Qi.