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According to Jinjiang hotel performance in the late 2017, although the limited service hotel has become a result of last year's performance, Jinjiang is still in the field of full service hotel. While breaking away from the international hotel group, Jinjiang is also upgrading its high-end hotel brand. However, there are many difficulties in the strong development of local high-end hotel brands at the present stage, and the "bomb", which is buried by the large amount of goodwill produced by the acquisition, adds a bit of uncertainty to the future development of Jinjiang.
Full service hotel performance decline
A few days ago, the Jinjiang Hotel released the results of the late 2017. Data show that in 2017 Jinjiang hotel sales revenue of about 19 billion 760 million yuan, an increase of about 16.1% compared with the same period last year, shareholders should account for about 760 million yuan, an increase of about 0.3% compared with the same period last year. Jinjiang hotels said the growth was mainly due to the growth in business performance brought about by the expansion of the hotel.
From the perspective of branch revenue, the driving force of Jinjiang Hotel growth is undoubtedly limited to serve the hotel. According to reports, limited service hotels refer to Jinjiang Louvre Asia, Louvre group, platinum Tao Group and Vienna Hotel. During the reporting period, the external sales volume of Jinjiang Hotels Limited service reached 9 billion 436 million yuan, an increase of 37% over the same period last year. However, compared with the limited service hotels, the performance of Jinjiang hotels' whole service hotels has declined.
The information shows that the full service hotel in Jinjiang hotel is the four star luxury hotel and five star luxury hotel, including the familiar Jin Jiang Hotel, the the Peace Hotel, and so on. During the reporting period, the external sales volume of the Jinjiang hotel full service hotel was 1 billion 889 million yuan, compared with 1 billion 950 million yuan in 2016. In addition, the whole hotel service room rental income, catering sales, supporting services, hotel management revenue and other items have declined. For the reasons for the decline in performance, Jinjiang said that the main reason is the "camp to increase" policy, no tax in the turnover and the reduction of revenue from Rainbow Hotel's shutdown.
However, this explanation has been bombarded by the insiders. Zhao Huanyan, chief knowledge officer of Huamei consultancy, wrote: "the reasons for the impact of the value-added tax in the earnings report are very ignorant." Other industry analysts have pointed out that the "camp to increase" will certainly have a certain impact, but it may not be very big, but the impact of the Rainbow Hotel shutdown may be greater.
Get rid of the International Hotel Group
Although limited service hotels helped a lot in the growth of Jinjiang hotels, in 2017, Jinjiang also played a lot in the high-end hotels. Looking at the move of Jinjiang in 2017, it is easy to see that it is trying to "independence" from the international hotel group.
In March, the Sheraton Hotel in Hongqiao was converted to Hongqiao Jin Jiang Grand Hotel, and was selected and operated by Jinjiang's high-end hotel brand management company Jinjiang. Next, Jinjiang will focus on building the four high-end brands of "J", "rock garden", "Jinjiang" and "Kunlun". In September of the same year, Hilton announced the withdrawal of cards in Jingan, and changed to Jinjiang group's Jingan Kunlun hotel in 2018.
In October, Jinjiang Hotel announced through the two stock acquisition, the company obtained the holding power of Shanghai Yangzi River Hotel 66.67%, became the first major shareholder of the hotel, and handled the land transfer procedures. It is understood that the Yangtze River Hotel is one of the five star hotels in Jinjiang. It was previously a Sino foreign joint venture and the foreign equity stake was bought in full. In order to acquire the right to use the land, the Yangtze River Hotel needs to pay another 940 million yuan of compensation to the other company. To this end, Jinjiang hotel will also pledge the ownership of the hotel to Hong Lian company as a guarantee. Jinjiang said that through the acquisition of shares, it will help to enhance the company's operation and control rights and enhance asset value, and realize the sustainable operation of Yangtze River Hotel.
It is worth noting that according to the results announcement, the land use right project of Jinjiang Hotel reached 3 billion 296 million yuan in 2017, an increase of 1 billion 340 million yuan compared with 2016. The analysis points out that the land use rights and other projects will be included in the cost of apportioned, increase the cost and reduce the profit, and then affect the performance of the hotel full service hotel in Jinjiang in 2017.
In addition, last November, Jinjiang International announced that Rainbow Hotel was renamed "Yu Jin Xiang Hotel in Hongqiao". It is understood that Yu Jin Xiang is an old four star brand in Louvre, France, and France's Louvre has been fully bought by Jinjiang. It is said that Jinjiang also plans to produce two core properties located in the Bund, Shanghai and other places, and turn it into a fragrant hotel.
Hidden danger in the limited service hotel
In the announcement, the Jinjiang Hotel bluntly stated: "Shanghai is the foundation for the group to serve the whole hotel business." It is not difficult to understand why Jinjiang first started operating through the hotel assets in Shanghai. From the above series of actions, we can see that Jinjiang is trying to get rid of its dependence on international hotel groups and gradually brand its assets.
For Jinjiang's move, Galen Moore, founder of the hotel property network, said: "I think it is more like a precursor to abandoning international hotel companies. At the moment, it is unrealistic to say that it is unrealistic to develop high-end brands vigorously, but the establishment of domestic brands is a major trend of domestic groups. But domestic acceptance of local brands requires a process. In March, The Greens Hotel group announced the recovery of Shanghai Meilong Zhi election management power from the hands of the group, and joined the group's self - owned brand team. Previously, The Greens Hotel group has released a number of proprietary brands.
Insiders said that the backbone of the Avenir Hotel market is still high-end hotels. However, for the time being, the focus of Jinjiang's efforts and the push of its achievements are.