/ Aswen News/August 02, 2022 Guangzhou - In the third year of the epidemic, epidemic prevention has become a regular practice, the impact of the hotel industry has been reduced, and hotel investment has shown a recovery. After three years of grinding, Chinese hotel investment tends to be more rational, and the requirements for hotel brands are more strict.
In the 2022 China Tourism and Accommodation Industry MBI Brand and Investment Summit with the theme of "Go through trials and hardships, Travel and stay Far away", elong Hotel technology platform wine brand management won three awards. Including Aiesports Hotel won the "2022 MBI Recommended Brand", Timbor Hotel won the "2021 MBI Investment Value Brand", elong Haiyi Hotel won the "2021 MBI Commercial Investment Value Brand" award.In order to further explore the commercial value of middle and high-end hotel brands, Maidian interviewed Fu Wei, the co-founder and CEO of Liangcheng Wine Management, to trace the origin of elong Haiyi Hotel award and the future value of middle and high-end hotel brands.
01 Market pressure, rational return of hotel investment < p> Entering the second half of 2022, the national hotel investment market is hot, hotel brands have launched a number of investment to join the meeting, many hotel investors are also accelerating to find new opportunities. According to Horwath's "China Hotel Market Climate Survey Report in the third quarter of 2022", the overall climate index in the third quarter improved significantly, close to the highest level after the COVID-19 outbreak.
Now seems to be the perfect time to invest in hotels. On the one hand, China's epidemic prevention is becoming mature, policy means and medical security are comprehensively improved, and the economy of all industries is in the stage of rapid recovery, which provides a solid market foundation for hotel investment. On the other hand, the industry continues to clear under the influence of the epidemic, and the property rent and even the land price have decreased significantly compared with that before the epidemic. At this time, investment in hotels may reduce the cost before the price rises.However, the booming hotel investment market is putting pressure on hotel brands. On the one hand, the hotel investors return to rationality, strict requirements for the hotel brand. At present, there are two kinds of hotel investors in the market. One is investors who follow the development of the hotel industry in China and grow up. They have rich market experience and professional evaluation system for the brand.
On the other hand, the increasingly fierce market competition. According to incomplete statistics, since 2022, the number of newly opened hotels and newly signed hotels in China's hotel market has continued to rise, with 81 newly opened hotels and over 100 newly signed hotels in June alone. In order to seize the hotel market after the epidemic, all hotel brands are accelerating their expansion.
"It's a lot of pressure." Fu Wei, the co-founder and CEO of Liangcheng Wine Management, said in an interview with Maidian that "no matter how much pressure there is, as long as hotel brands do a good job in basic and internal skills and provide consumers and investors with value, they will definitely stand out in the market."
02 products to break through, investment value can break the game
In fact, after the hotel investment returns to rationality, investors on the hotel brand evaluation criteria are more comprehensive, not only to look at the product, but also look at the rate of return on investment, which is also we often say the value of commercial investment. From Fu Wei's point of view, this concept is closely related to the establishment of the business model of the hotel brand, which includes the product form, the investment model of the product and the ability of the team behind the product. Simply put, the hotel brand should not only have high-quality products, high-quality cost, high-quality team, but also have high-quality earning power. Step point noted that Yilonghaiyi hotel in these levels have shown a huge advantage:
First is the product form, Yilonghaiyi hotel as Liangcheng wine management "Yilonghai series" of four hotel brands fist products, positioning as a high-end cultural life hotel brand, itself has a distinct brand characteristics and excellent investment value. Yilong Haiyi hotel advocates the Chinese ideal and the value proposition of pleasant time. In the product design, the brand concept of "Old is New, old is new" is integrated into the design and life. The space uses the smooth law of the sea as the texture to show the Chinese style, the core value of inclusiveness, culture and harmony, and the essence of Chinese traditional culture and modern culture is fused in one furnace. Integrate into the hotel products, for the contemporary urban creative life family to create a good physical and mental Chinese ideal home.
And in the hotel service, its shape is the culture as the core of the Chinese life concept, return to the essential needs of consumers. Fu Wei told Mai Point, elong Haiyi hotel products to new Chinese aesthetics as the basis, to carry out the unique "five Yi" brand journey, meaning in the ideal time of romance, the ideal of the distance and the ideal of the heart, because of the journey and meet. The underlying logic of Yilong Haiyi Hotel's "Five Amenities" journey follows three principles, namely, a good night's sleep -- better matched beds, lighting, etc.; Take a good shower -- match better temperature, humidity, water speed, etc. Eat a good meal - match it with a healthier, quality breakfast etc. To some extent, this kind of cultural extension of the hotel products and services, with a richer brand connotation, but also with other brands do not have the difference and competitiveness.
Secondly, in the hotel product investment model level, elong Haiyi hotel from the pursuit of lower investment, higher return, shorter time, higher quality perspective, put forward the renovation principle of heavy decoration, light decoration, advocating to modular structure, assembly decoration efficient process to build high-quality hotel. At the same time, elong Haiyi Hotel also uses materials that are easier to maintain and improve the efficiency of each system to reduce operating costs; Introduce new materials and resources cooperation to reduce investment; Focus on appearance level and design, improve the sense of quality and experience; Through quality experience premium, marketing enabler, increase housing price and revenue. It is understood that Yilong Haiyi Hotel can reach 12-180,000 new store single room cost.Finally, relying on the strong brand potential of elong Hotel technology, with mature member operation system and multi-industry synergy advantages, combined with the positioning of Liangcheng Wine management one-stop hotel management service provider, enabling investment in the whole process of joining. Fu Wei told Maidian that the one-stop hotel management service is essentially accompanying, that is, from the opening stage of property selection by the owner to the completion of investment, and then to the subsequent operation management, income management and other stages. Liangcheng Wine Management adopts the whole process of nodal management, allowing investors to participate in the hotel's "growth process", so that the hotel investment more emotional connotation.
At the same time, elong Haiyi Hotel also gets a strong help from elong Hotel technology platform. One is the group's strong supply chain system, which can provide investors with high-quality and affordable procurement and after-sales services; The second performance lies in the huge membership system and financial support. It is understood that elong Hotel technology platform will provide rescue fund policies for franchise owners based on the actual situation of the project to solve the short-term financial difficulties of investors. In addition, elong series also supports room voucher exchange/room voucher exchange, greatly reducing hotel franchise costs, procurement costs, accelerate the hotel capital turnover; The third performance lies in operation capability. As one of the leading OTA platforms in China, its platform advantages and operation capability also bring huge development space for elong Haiyi Hotel.
In fact, elong Haiyi Hotel shows great potential in all levels of business investment value, has been recognized by the market and many investors. Up to now, elong Haiyi Hotel has been in Guangdong, Guangxi, Fujian, Hubei, Anhui and other key provinces and cities layout.
03 Grasp the value of assets, middle and high-end hotel investment second half
In fact, as early as in the "China Hotel industry Investment and asset Management market Outlook report" published by Horwath has mentioned that the middle and high-end hotel in new hotel development and stock property transformation are the focus of investors. According to the 2022 monthly Hotel industry Development report released by the Maidian Research Institute, middle and high-end hotels have always accounted for the highest proportion in the number of newly opened and newly signed hotels in China since 2022.
The reasons behind it are also very clear: at the market end, the structure of Chinese hotel industry is scattered, the overall market is pyramid-shaped structure (middle and high-end accounts for 32%), and is expected to change to the olive type structure of the United States (middle and high-end accounts for more than 75%) in the future; On the demand end, our country hotel structure and population income structure basically match, the future economic development drives the superposition of population structure upgrading and consumption upgrading, helpful to open the medium and high-end hotels upgrade space; On the investment side, medium and high-end hotels not only have high-end products and services, but also do not have to invest hundreds of millions of dollars like high-end hotels. They have a super rate of return on investment. For many investors who have spare money and want to make money, it is undoubtedly a cost-effective choice.
However, Fu Wei admitted in an interview with Mai Dian that mid - and high-end hotels also face challenges in the investment market. On the one hand, middle and high-end hotel products have certain requirements for the choice of property, it is difficult to find matching property in the case of the reduction of the incremental market, and in the stock market, many property structure old form diversification, middle and high-end hotel transformation is easy to increase unnecessary investment costs to investors; On the other hand, mid - and high-end hotels have been hit by both mid - and high-end hotels.In this context, how to forge the core competitiveness of the brand has become the key content of the high-end hotel brand cultivation, and according to the successful case of elong Haiyi Hotel, Mai Dian believes that there are the following points worth thinking about:
First, focus on the level of appearance, shaping the difference of aesthetic. Hotel product design is the first face of the hotel, is also the first condition for consumers to choose the hotel, and in the process of economic development of the level of appearance, high-end hotel brands want to attract attention, must shape the difference in aesthetic. Take Yilong Haiyi Hotel as an example, its product design has two core keywords, one is new Chinese style, the other is "sea". With Chinese culture as the core, the former has strong vitality and malleability under the background of the continuous development of Chinese economy and culture, while the latter creates a unique visual element in the product design of the brand and becomes a memory point that cannot be ignored in the hearts of consumers. Under the dual role of the two, when it comes to elong Haiyi Hotel, the image of the hotel is clearer in the mind of consumers, thus improving the re-purchase rate.
Second, return to the essence of service and match the core needs. Hotel is essentially a service product, the industry has experts said that the future of the hotel can do addition in the form of business, but must be in the service to do subtraction. By "subtraction", we mean meeting the core needs of consumers. The same is true for elong Haiyi Hotel, which continues to polish the three core needs of eating, sleeping and bathing to give consumers nearly high-end value service experience.
Third, not only cost, but also increase efficiency, hotel investment model mature. For investors, the key to hotel investment lies in the level of return on investment, which requires the hotel brand to have a more mature investment model, simply put, the hotel can not only do cost control in the process of joining, but also to do revenue enhancement. Taking elong Haiyi Hotel as an example, it focuses on decoration and light decoration as the principle. Through the selection of new materials and the prefabricated decoration mode, it greatly reduces the investment cost of the hotel, and greatly improves the hotel quality in accordance with the hotel's own product characteristics and service experience, thus bringing revenue growth.
Fourth, operation management is practical, talent team is indispensable. Maidian noted that hotel investment is a long-term process. In addition to the previous site construction, the operation and management of the hotel after opening is also very important. At this time, the management mode represented by "one-stop hotel management" of Liangcheng Wine Management has been recognized by investors. At the same time, backed by Tongcheng Yilong Group, it has the support of a strong talent team under the advantages of the brand and the group, which can re-empower the operation and management of the hotel, so as to drive the hotel into a new stage of operation profit and marketing profit, and realize the maximum profit.
< /p>Fifth, grasp the value of assets, shape the long life cycle of the hotel. Some insiders have pointed out that in addition to the revenue value brought by operation management, the asset value is more important in the future of middle and high-end hotels. This means that for investors, mid - and high-end hotel investment is more like an asset management. "In addition to the value of the property itself, mid - to high-end hotels can provide investors with long-term asset appreciation beyond return on investment through unique design, quality construction materials and even operational management capabilities." "This is the long life cycle of mid - and high-end hotel investment, that is, long-term value," Fu Wei stressed.
