Jinjiang Inn's first acquisition is not a rational expansion of speed

"For Jinjiang, this is the first ever takeover case.　　"September 21 morning, Jinjiang Star President Xu Zurong in an interview with this newspaper said.　　Xu refers to the "acquisition case" refers to the Jinjiang star of the regional brand-Shanxi Jin Guang Express Hotel Management Co., Ltd. (hereinafter called Jinguang Fast).　　September 21, Jinjiang Stock (600754) issued a notice announcing its next subsidiary Shanghai Jinjiang International Hotel Investment Co., Ltd. (hereinafter referred to as "Hotel investment Company") and Shanxi Jinguang Investment Co., Ltd. (hereinafter referred to as Jinguang Investment) signed the agreement on the Jinguang of rapid increase capital and equity transfer. According to the agreement, the hotel investment company to 76.631 million yuan to subscribe to the new 40% of the newly registered capital, of which, 27.3333 million yuan into the Jin Guang fast registered capital, the remaining 49.2977 million yuan into the gold and fast capital accumulation; At the same time, the hotel investment company also takes 5747.33　　Million yuan on the price of Jinguang investment held by the Golden 30% of the equity. After the completion of the transaction, Jinguang fast registration capital changed to 68.3333 million yuan, the hotel investment company holds its 70% per cent stake, 30% of the stake is held by Jinguang investment.　　3 years later, the hotel investment company has the right to decide whether to buy the remaining 30% per cent.　　As of the end of June this year, Jinguang has a total of 11 stores, all straight camp, and all located in Taiyuan City, Shanxi province.　　In the view of a budget hotel CEO, the Jinguang is "not particularly big".　　But Xu Zurong that, after all, Jinguang fast has more than 1000 rooms, 11 stores, although not many, but if according to the Jinjiang of the original as a family to build, "also to spend a lot of energy."　　More crucially, "this opens the prelude to the Jinjiang merger," said Xu Zurong, who has been walking the path of natural growth for more than 10 years, "although the size of this acquisition is small, at least we have started doing this". Rational expansion of the 1997, Jinjiang Inn opened the first domestic budget hotel-Shanghai Jinjiang Park Shop officially opened.　　This also created a domestic budget hotel precedent.　　Since then, economic hotels have sprung up in China.　　Pioneer Jinjiang Star, in the speed issue but encountered "embarrassment." According to the "2008 China Budget Hotel Survey Report", the size of Jinjiang is ranked as home.　　As of June 30, 2010, the establishment of the 13-year Jinjiang star into operation of the hotel reached 369, such as home is 674, the same period, 7 days and hanting hotels respectively 399 and 324 hotels into operation, has always been focused on the "steady" development of Greentree Inn, the current opening hotel also reached more than 260.　　For speed, Xu Zurong has repeatedly stressed to reporters, Jinjiang star in the "according to the law", "do not care about the position of the boss did not, was more than". Earlier, Jinjiang Hotel (2006.HK) owned 71.225% of Jinjiang Inn Co., Ltd. and held 80% shares of Shanghai Jinjiang International Hotel Investment Company, while Jinjiang shares (600754) hold 20% per cent of the above two companies respectively. August 2009, Jinjiang shares with its three-star hotel business and Jinjiang Hotel's "Jinjiang Star" assets replacement.　　This May, the reorganization of the asset was approved by the SFC.　　This also means that Jinjiang star completed A shares return, and become the main business of Jinjiang stock.　　Xu Zurong admits that the capital market "is too slow" to evaluate Jinjiang, which also "brings pressure" to the Jinjiang team. Jinjiang's star is accelerating its expansion, the Jinjiang company said in its 2009 earnings.　　The specific expansion plan is: from the original development of 80-100 stores each year, adjusted to more than 100, the next 3-5 years to more than 1000 stores.　　As early as July this year, Xu Zurong told the media that Jinjiang Inn has been looking for the right acquisition opportunity, "there are already a number of regional chain brands taken into account."　　At that time, "Kim Guang-fast is one of them", Xu Zurong said the project's negotiations have been "several months".　　In 2007, seven bucket star was once considered by Jinjiang star. October 2007, seven Dou star is like home "embrace into the bosom", 100% equity of the price is 340 million yuan.　　But the continued loss of seven, a drag on the home earnings of a few consecutive quarters of the red light.　　"The most important thing is to consider the cost," Xu Zurong said, when Jinjiang took the initiative to give up seven stars "or more rational."　　But according to the announcement, the 2009 fiscal year, Jinguang fast operating income of 61.4926 million yuan, net profit unexpectedly is-9.1121 million yuan; As of June 30 this year, Jinguang fast to achieve business income of 36.9022 million yuan, but net profit is-3.3304 million yuan.　　In fact, after the investigation, Jinjiang concluded that Jinguang fast "and seven of the situation is completely different." "It is a private enterprise, the loss is actually the owner of the arrangement, he used the leverage, the loan a little more," Xu Zurong analysis, "In fact, it is still very good business, last year pre-tax profit is more than 10 million."　　"In Shanxi Taiyuan Market, Jinguang Fast called" main force. Founded in 2006, the budget hotel brand, because in the Taiyuan market "early action", to seize the railway stations, airports, bus stations and other near the prime location.　　In addition, the hotel was founded at the beginning of a commitment to service standardization and branding.　　2008, Jinguang Express General manager Liu Jianwu has said that they are not in a hurry to expand the country, "only the Shanxi market to talk about the other".　　Comprehensive inspection down, Jinjiang Star that Jinguang fast "in quality, brand quality, including operating performance, are still good."　　Xu Zurong says the Jinjiang star is still focused on the right acquisition opportunities, but "rational expansion" cannot be speed. The main problem is that the source of the customer is the rapid increase of the store, and how to ensure？　　Marketing, publicity is Xu Zurong as one of the important means, but he also joked that "in the past, our yell is not as good as others."　　A noteworthy detail is that today's Jinjiang star management, including President Xu Zurong, Vice President Yu Meng, and so on, has significantly increased exposure in the media, and in the past, their "low-key" to the media reporters are very distressed.　　Increasing communication with the media is just one of the "fulcrum" of the Jinjiang star Market to pry the market.　　In March this year, Jinjiang star's marketing team, but also with the domestic limelight is flourishing SNS website-happy NET to reach a cooperation, to carry out network marketing. Specific methods for the period from January 20, 2010 to March 10, Jinjiang Inn has opened more than 300 hotels in the country to jointly launch the "tens of millions (prizes) do not miss" the theme of the promotional activities, and the activity voucher as a user gift, was implanted happy net, for keen on the net to steal vegetables, car parking, To give gifts to the urban white-collar workers, you can more easily access to information about the event, access to the hotel's preferential policies.　　This activity in a short time has attracted many netizens ' attention and participation.　　The upgrade of the call center is also an important support behind the expansion of Jinjiang Star. April 2010, Jinjiang Star hired IBM to design a new generation of call center officially online.　　This call center has 250 seats and has fine operation management, standardized service and sales process. The large capacity of the seat service to ensure that the customer calls can be connected in a few seconds, and support the same point at home and abroad 150 telephone exchanges, customers call, no longer wait, improve the booking efficiency.　　In addition, the new call center can automatically choose the customer's mother tongue as the default language, and the customer has previously registered in Jinjiang Inn information, the system will automatically prompt staff based on past accommodation preferences for customers to recommend the corresponding services.　　Yu Meng has told reporters that Jinjiang star of the source, such as Ctrip, such as Third-party intermediary recommended only accounted for "a very small part", mainly rely on Jinjiang own website and call center reservation.　　Xu Zurong said, "The future of the entire third party will have a certain number of increase", but mainly rely on Jinjiang own system to ensure that customers. Stronger management incentive in the speed issue, Xu Zurong always adhere to a point of view is: "To the ability to match management."　　"The increase in the number of stores also brings challenges to the management capabilities of Jinjiang Inn headquarters."　　For the future "over 1000 stores in 3-5 years" plan, Jinjiang star launched the "4 1" management structure, that is, 1 headquarters, divided into 10 districts, 1 District tube 100 stores, 1 districts under 10 regional general Manager, 1 regional General manager management under 10 stores.　　The ERP under construction provides strong support for the headquarters management of Jinjiang Star, which makes the management process of finance, procurement and human resources more efficient.　　For budget hotels, always facing an adjustment is, standardization of the promotion. Jinjiang Inn Interior SetupTwo training departments, responsible for the entire company's training, one is management training, the other is operational training.　　The former is mainly for managers, including the shop chief, senior management, the latter is to standardize the service process training, such as how guests receive, how to clean rooms, how to solve problems. At present, the Jinjiang standardization training courses have been all made into video, online. All the chain stores, including the newly opened shops, all can be online for classes, training, and then online exams, grading, testing whether qualified.　　In order to supervise the implementation of this part of the training and the staff of the induction, salary and promotion, and so on all together.　　"This is very efficient, but it can also avoid problems where different teachers have different standards," Xu Zurong.　　However, an insider has inadvertently revealed that the jinjiang of the state-owned system in the management incentive mechanism obstacles.　　Xu Zurong and its team is called the pioneer of the domestic economy hotel industry, many of them have been serving in Jinjiang for more than 10 years.　　An obvious difference is that, such as home, Han Court, 7 days and other private hotels listed at the same time, but also created a group of tens of millions or even billionaires, and Jinjiang star's 37 management has previously only held its 8.775% stake.　　June 21, 2010, Jinjiang shares to 132.38 million yuan of the total price of the management to be held in stock; since the July 2 to 6th, 29 management also purchased part of the shares of Jinjiang stock (600754) from a shares, voluntarily locking in for 1 years.　　To the outside world is curious, whether this kind of drop to the management of Jinjiang star Impact, at least the psychological impact?　　Xu Zurong's answer is, "basically no", he stressed to reporters, compared to private brands, "Jinjiang team sense of belonging more strong." "Of course, the Jinjiang star would be better off with a strong incentive mechanism," Xu Zurong said. "The group is also considering helping us plan for the next step." ”