The scale of "thousand shops" has spawned a profit annoyance

Friday, such as home, 7 days to release the 2011 annual earnings. So far, the three major budget hotels in the United States, such as home, Han Court, 7 days have been released 2011 years of the Four Seasons and the full year earnings. According to the results, 3 of the Economic Hotels Group 2011 Net profit total of 595.3 million yuan, compared with the same period in 2010 reduced by 97.7 million yuan, down 14.1%. Domestic major brand budget hotels in the "Thousand Shop" to the scale of the search for efficiency, ahead of the rapid expansion of the profits caused by the decline of worry.

The scale of "thousand shops" has spawned a profit annoyance

As of December 31, 2011, such as home in China a total of 1426 hotels, 7 days to operate 944 stores, Han court already has 639 stores, to open stores 278, is expected to the end of 2012 will be more than thousands of open hotels. Domestic major brand budget hotels have basically entered the "Thousand Shop" era. 2010, such as home, Han Court, 7 days of net profit of 359.5 million yuan, 215.8 million yuan, 117.7 million Yuan, 2011, respectively, 351.5 million yuan, 114.8 million yuan, 129 million yuan.

News reports found that 7 days 2011 year net profit rose 9.6% Year-on-year, compared with the 2010 net profit Year-on-year increase in comparison with the decline is obvious, such as home 2011 net profit fell by 2.2%, Han Court 2011 net profit fell 46.7%. The net profit growth of the three hotels has declined, especially in Han court.

Leading weakness suggests changes in market supply and demand

The average hotel occupancy rate for 2011 was 88.8%, compared with an average occupancy rate of 93.5% in 2010, according to statistics. A large number of newly opened hotels and new stores have slowed down as the main reason for the decline in occupancy rates in 2011. The second 7 days of store size also face a decline in occupancy rates. Only the Chinese court maintains a high occupancy rate of 92% in the year.

The key profitability indicators used to measure the hotel industry RevPAR (occupancy x average rate) showed that, despite the biggest decline in net profits last year, the Chinese court's profitability was strongest in three budget hotels. Han Court 2011 year RevPAR reached 165 yuan, and operating more than 18 months of mature stores RevPAR is 183 yuan. Compared with the Han court, the proportion of such as home and 7 days in 2011 RevPAR 152 Yuan and 136.2 yuan respectively, compared with the same period in 2010, respectively, decreased by 7% and 5.35%.

such as home in the completion of the purchase of motel, gradually into the consolidation period. Industry insiders said, such as the new hotel open climbing period and the overall economic environment impact, 2012 profit margins will face continued decline in the possibility.

To join the way to continue to fight the scale

Industry insiders believe that the last two years is a key period of economic hotel expansion. The pace of the expansion of the tap will be further accelerated. is to slow the pace of expansion, increase average house prices and rental rate, to prove their profitability to shareholders, or accelerate the pace of expansion, the early realization of the largest store size, occupy market share? This problem has become a budget hotel in the completion of the "Thousand Shop" dream to face the new choice.

It is understood that the face of such as home, 7 days hotels rely on the way to join the huge horse race enclosure pressure, Hanting Hotel CEO Hanting said that in the future will change the future development strategy, seeking to increase the proportion of joining to pursue such as home, 7 days. Before the Han court is to go straight to join the balanced development strategy, focus on the quality of the shop, the franchise is still less than 50%, and such as home and 7 days to join the proportion of more than 50% in the last year.

7 days is expected to open 360 new hotels in 2012, including 120 direct shops and 240 management stores. And if the CEO Jian choose to continue to expand the scale of high-speed, he said, in the next five years, such as the number of stores will reach 3,000 home. Commercial newspaper reporter Chengming 劼希