On October 22, â€œHome Innsâ€ (hereinafter referred to as â€œHomeâ€) successfully acquired 100% equity of â€œQi Dou Xingâ€ at a price of RMB 340 million. So far, the number of hotels like home has exceeded 330. a year ago...
On October 22, â€œHome Innsâ€ (hereinafter referred to as â€œHomeâ€) successfully acquired 100% equity of â€œQi Dou Xingâ€ at a price of RMB 340 million. So far, the number of hotels like home has exceeded 330. A year ago, Home Inns successfully raised $109 million on the NASDAQ listing in the United States. â€œListing financing is used to continue to expand.â€ The CEO of Sun Jianâ€™s rhetoric has become a reality.
Since its establishment in June 2002, Home Inn has spent more than five years walking through other hotels for nearly a decade, and has developed into one of the largest economic chain hotels in China. What prompted the home to be so "efficient" and "quick"? Explore its roots, accurate positioning, clear strategy, and strong execution to help the family successfully complete the triple jump.
Home Inns was founded by Ctrip and BTG, and successfully landed on NASDAQ in 4 years. Sun Jian believes that the main reason is that Home Inns has made great innovations in business models and found profit growth centered on customer needs. product.
In fact, Home Inns is a "small hotel, big industry" victory. Home Inns adds values â€‹â€‹of cleanliness, comfort, and economy to the traditional hotel industry, transforming traditionally built hotels into chain leases. Some critics have pointed out that Home Inns' innovation lies in the bold attempts made in the business model, narrowing the product extension, finding customer needs, doing something, doing something wrong, and making choices and additions to the hotel industry products is the main attraction for consumers. factor.
When investment banker Robert John went public, he said frankly: "We value the participation of 'consumers'. The important reason why home can get the favor of the capital market is that it is a concept with consumers from China. enterprise."
At the same time, Home Inns quickly and out of the development model different from the traditional hotel group, breaking through the regional restrictions, the national layout, the establishment of a hotel network from point to point. And it is standardized in software and hardware implementation networks.
The formulation of concepts and rules is simple and easy, and the relatively complicated is the promotion of brands. â€œThe premise of allowing consumers to enjoy and travel with ease in China is to let everyone know the concept of home, such as the brand of home.â€ Sun Jian continued to sigh. The successful listing in 2006 provided a rare opportunity for home-based brand promotion.
Finding a good leader is the most direct and effective means of branding. "This is Shen Nengpeng and other entrepreneurial teams following the Ctrip, the second time in three years to lead the company to land on the Nasdaq." The Americans once commented on the leader of the home, of course, this is also an important reason for the choice of Shen Nanpeng.
Credit Suisse director Zhou Jien believes that the smooth listing of Home Inns lies in the understanding and recognition of investors in such budget hotels as their homes; on the other hand, the good reputation that Shen Nanpeng and other entrepreneurs have left to the US capital market. In the same year, Americans gave the "best IPO" to their home.
Of course, home in the United States will also face the same crux of Chinese companies - whether it can continue to grow, has become the most worrying issue for US investors. Zhou Jien also said without any rumors that the biggest question left by the family is the ability to continue to grow. â€œWe can see that the profitability of Home Inns in 2003-2005 can be maintained, and its growth is obvious to all. But it is a challenge to continue to grow at home after 2006.â€
In fact, at the time, the home is not worried about the future development, such as the Chinese consumer market and good brands in the home can help them continue to win a large number of customers. However, in the face of doubts, Sun Jian said: "The financing of our listing will mainly be used to continue to expand."
"With the help of abundant cash flow, Home Inns has expanded at an alarming rate, and it has been deployed in four ways: direct stores, franchising, management contracts, and market alliances." Some critics have commented on the expansion model of Home Inns. Add "M&A" in addition to these four modes.
On October 22nd, â€œHome Innsâ€ directed the first large-scale acquisition of domestic economic chain hotels and successfully acquired 100% equity of â€œSeven Dipperâ€ at a price of RMB 340 million. The number of homes has increased to more than 330.
â€œCompared with the scale of two or three thousand chain stores of foreign hotel groups, we are still very small.â€ Sun Jian said that Home Inns will continue to look for suitable acquisition opportunities and plans to expand the number of hotels to 1,000 in the next 3-4 years. The number of hotels acquired will account for 20% of the increase in the number of hotels. â€œOur goal is to open hotels in 100 cities in the country.â€