At the recently concluded symposium on "The Golden Development of Tourism Industry and the Rise of Indigenous Brands", Joe Sun, CEO of Home Inn Group, revealed that in the next ten years, Home Inn will expand its hotel scale to reach 5,000 hotels, entering the global top three hotel groups. Sun emphasized simultaneously that although Home Inn will diversify in the future, the additional hotels will still focus on economy hotels and mid-range hotels, and will not yet venture into the high-end hotel market.
On May 27 this year, Home Inn announced the acquisition of Motel 168's entire shares for $470 million. Motel 168 is China's fifth largest economy chain hotel, with 144 directly operated stores and 137 franchised stores at the time of acquisition by Home Inn. After the acquisition, the number of hotels owned by Home Inn exceeded 1,120, covering approximately 170 cities. The number of brands owned by Home Inn also increased from two to three, reinforcing its position as China's largest economy hotel group.
According to Sun, the positioning of Home Inn Express is "home-like simplicity," and its scale in the next ten years will increase from the current approximately 1,100 to between 3,000 and 3,500. Motel 168 is positioned as "quality simplicity," emphasizing comfort, quality, and customer experience, aiming to reach a scale of over 1,000 hotels in the next ten years. Heiyan is positioned as a high-end business hotel brand, currently owning 3 hotels, with plans to reach a scale of 50-60 hotels in the next five to six years.
Home Inn was founded in 2002 by Capital Tourism Group and Ctrip, and listed on NASDAQ in the United States in October 2006, becoming the first Chinese hotel company to list overseas. In the past ten years, driven by the capital market, Home Inn has achieved rapid development, currently owning nearly 1,400 hotels, entering the world's top 10 hotel industry rankings. Sun expressed that Home Inn will focus on the expansion of economy hotels in China and worldwide, with the group's hotel scale reaching 5,000 hotels in the next ten years, entering the global top three.
Duan Qiang, chairman of Capital Tourism Group, believed that Home Inn's goal of being among the "top three" is not impossible to achieve, as InterContinental Hotels Group, the world's largest hotel group, owns only 4,520 hotels with 666,476 rooms.
"The economy hotel market has transitioned from the chaotic phase of the Warring States era to the stage of monopolistic competition," said Dai Bin, director of the China Tourism Academy. In the next decade, the consolidation trend in the economy hotel market will be more pronounced. Not only will companies like Home Inn, 7 Days, Hanting, and Jinjiang Inn acquire other small and medium-sized brands, but there is also the possibility of mergers and acquisitions between the top few major brand giants.
"In China's economy hotel market, scaling up is not excessive but rather just beginning," said David Mei, co-chairman of Home Inn Group. He believed that while economy hotels are now facing more complex and fierce competition than before, the proportion of economy hotels in China's total hotel count remains low, with significant market demand remaining.
Customer Service 360 is a platform that provides online services for enterprises, helping you enhance your business applications on the internet and overall improve your corporate competitiveness. When potential customers visit your website, the customer service can initiate an invitation to chat through Customer Service 360. Through engaging conversations, friendly exchanges, and leaving contact information, Customer Service 360 can enhance and optimize all marketing and after-sales service stages. This allows you to track more sales opportunities with less time, make more accurate marketing decisions, provide more precise after-sales services, and achieve continuous growth in sales performance.
Official Website of 360 Online Customer Service System: www.kefu360.com
Consultation Number: 021-32557299