The acquisition of Motel 168 has ramped up short-term costs for China’s leading budget-hotel operator, but should boost its long-term prospects
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13 Jun 2013
The acquisition of Motel 168 has ramped up short-term costs for China’s leading budget-hotel operator, but should boost its long-term prospects
A recent strategic shift towards an asset-light franchise model should drive rapid expansion and revenue growth for China’s second-largest economy hotel operator
Jinjiang continues to lose market share to fast-growing rivals, but its large proportion of franchised hotels and popularity among wealthier travelers enables it to enjoy higher margins and revenue per available room
China Lodging Group has expanded rapidly without sacrificing revenue or occupancy rates, and should be strengthened further by the acquisition of mid-range chain Starway Hotels
While many consumer industries are slowing expansion in the face of a slowdown in demand and economic activity, the business pulse is quickening across China’s budget-hotel sector
China's Bankcard Consumer Confidence Index, a measure of cardholder spending on non-essential items, continued to recover, up 0.1 percentage points from July to 86.2 in August, China UnionPay which compiles the index said. The reading is in line with findings from China Confidential's August Consumer Sentiment Indicator, released on Sept 1, which indicated overall discretionary spending remained robust in August, consistent with July.
Fierce competition in airline ticket and hotel booking segments is weighing on revenue growth.
The travel search engine is drawing traffic from major online travel agents Elong and Ctrip.
Rapid growth in the online travel reservation business is attracting new market entrants and driving down profit margins.
In spite of a number of investments in China operations, they are yet to drive significant revenues for the global travel group.
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