A comprehensive understanding of the type of hotel development and business model

Hotel development types and business models are not many, but the scope of the scope is wider, more content, the relationship is more complex. We aim to use this article to help you briefly manage the structure and relationship of various models in the industry, so as to be able to recognize the characteristics of each project, clear the hotel planner’s role in the project, and the power that can be exercised.

I. According to the nature of the building industry

1. Create a new project

2. Renovation projects

Integrated projects

Integrated projects are primarily complex projects, or hotels and commercial, display, retail, office, and residential selective combination of projects.

Even with the emergence of multiple hotel brands in complex projects, two or more brands of projects suggest multi-brand hotel group collaboration, with related resources and benefits more easily coordinated. The differentiated hotel brand combination, which meets the different guests’ residences, is a successful model in which the project pays attention to the profit of property operation.

4. Change of cards

This will involve the original project with different brand standards for the new hotel brand. The difficulty lies in the game between the owner and the hotel management, and we must constantly do a good job in the balance between the standard renovation of the new hotel brand and the development cost of the project.

(This part is more intuitive and can be understood from the definition of the project name, so it is not described one by one.) )

Second, according to the hotel brand cooperation management model

1. Commissioned management

2. Brand franchise

3. Shareholding management

4. Hotel brand self-employed

5. Co-marketing

Strategic cooperation of consultants

Domestic generally for the above model-independent appearance, and foreign brands to license the third-party management model.

As the OTA platform intends to be deeply involved in the hospitality industry, a new overlay management model will emerge.

OTA platform will combine its advantages in the industry, the upcoming entry into the hotel industry is the integration of single hotels, suitable for the main battle franchise and joint sales of the combination model, as a new model encroach on the hotel industry. Will this be another round of plundering of the interests of single hotels or individual hotels? We’ll see.

(Please look forward to Hotel Preparation Guide will be dedicated to discussing the competitiveness and prospects of this model with the industry.) ）

A. Commissioned management

The hotel owner and the hotel management signed a hotel management contract for full entrustment management. According to the hotel management according to the hotel brand unified management standards, service standards, quality standards, and operating methods of the contract for the hotel for professional management model.

Prior to the hotel operation, the hotel owner paid the hotel preparation technical service fee and brand joining fee to the hotel brand (also known as the hotel pre-guidance fee, mostly a one-time charge during the contract period); (Hotel managers generally withdraw 2% to 5%of the hotel’s total revenue), incentive management fees (mostly to the hotel to achieve the agreed target profit margin, hotel management to extract the operating profit GOP by ladder 5% to 10%).

B. Brand franchises

The hotel management licenses and authorizes the owner of the hotel to allow the agreed hotel to use intangible assets such as brand names, registered trademarks, stereotyped technologies, operating methods, operating procedures, booking systems, and purchasing networks of an intellectual property nature. However, hotels must comply with hotel-branded hotel standards (construction standards, operating standards, technical management standards).

Prior to the hotel operation, the hotel owner to the hotel brand with full authority to entrust management to pay the hotel pre-guidance fee, during the hotel operation, the hotel owner to the hotel brand to pay the hotel operating technical support service fee (generally charged according to the agreed monthly fixed fee or according to the volume of hotel rooms monthly according to the total revenue of 0.5% to 1% extraction).

C. Shareholding management

The hotel management becomes the owner of the hotel by holding, participating in or injecting capital into the hotel property. Preparation and operation management methods are basically the same as the full entrustment of management. However, both parties share the benefits and risks of hotel operations, mainly for the profit ratio dividend model.

Hotel groups are now mostly light asset development, in addition to bundled large-scale commercial cooperation, rarely participate in the hotel project heavy assets investment. Unless the hotel group needs to meet the rapid expansion of the number of hotels in the short term in order to achieve a certain purpose, or if it is interested in building the project into a flagship store with a hotel brand image in order to develop a new hotel brand in favor of the hotel property location.

There are also some hotel projects agreed for the joint management of both sides, hotel brands generally will not accept this agreement. Most of the owners intend to develop the hotel brand to achieve the purpose of learning, the two sides must be the existence of greater commercial cooperation as a prerequisite, or the real estate development group intends to the cross-border acquisition of the hotel brand.

D. Hotel brand self-employed

1. Property proprietary

a. The hotel group owns property rights and manages the hotel itself;

b. The owner of the property builds and manages the property on its own.

(This is called monolithic stores in the industry.) Generally do not have their own strong hotel membership system, mainly by hanging on the OTA platform operation. The OTA platform’s hotel brand will target such hotel intrusions for rapid expansion

2. Lease self-employed

Hotel Group to the property rental building, independent decoration, management of the hotel. Most for the development of new hotel brand as the flagship hotel brand image, but must be excellent geographical location and long-term, stable property.

E. Co-op

The Global Distribution System (GDS) combines real-time Internet booking capabilities to form a hotel conglomerate. The main integration of the shared hotel supply chain, hotel management technology, hotel OTA platform mutual assistance consortium ( alliance ), single management of the hotel voluntary fee to join.

Shared services mainly include: joint procurement, joint promotion, joint booking, joint training, joint market development, joint technology development

F. Strategic cooperation of advisers

Hotel investment consultants and real estate developers have reached a number of large-scale integrated project development consultants, including hotel projects.

Mostly appear in large-scale integrated projects supporting hotel projects (such as large-scale integrated resort towns, large-scale vacation pension projects). The hotel’s investment-strength business integrated investment advisory firm provides full-program service support and consultancy fees from overall project planning to operations.