case study.docx - Final Case Study Clark(Te Kang Hospitality Darrin 2018.4.10 Abstract 2011 May 27Home Inns Group paid $470 million for a full stake in

case study.docx - Final Case Study Clark(Te Kang...

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Final Case Study Clark (Te Kang) Hospitality Darrin 2018.4.10 Abstract 2011 May 27 Home Inns Group paid $470 million for a full stake in Motel 168 Hotel Management. The method of settling accounts was $305 million paid in cash and the rest was paid in the form of 8.15 million home common shares ($20.185 per common stock). Using the compare
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and contrast, the purpose of this paper is to introduce the background of the two parties and the industry environment of the economy hotel, and then analyze the advantages and disadvantages of the merger and the most important reasons. Finally get the impact and consequences of this act. Background Economic hotel is a popular tourist and small and medium-sized business travelers as the main service object, guest rooms as the only product or core products, mainly to join or franchise business model, etc. Low price (generally in 300 RMB below), standard service, high price- effective modern hotel business. At present, the average occupancy rate of economy hotels is over 90%, or even 100%. As a dark horse of hotel industry, economy hotel chain attracts more and more investors' attention. Acquirer: Home Inns Group. Home Inns Group was founded in 2002 by first Travel and Ctrip, listed on NASDAQ in October 2006, is the first overseas listing of Chinese hotel industry, and has now entered the top 10 of the world hotel industry. For example, before the acquisition of Motai, the number of hotels in the Yangtze River Delta region was lower than that in Hanting. In Shanghai, Motai ranked first in the number of hotels with 106 hotels, and only ranked fourth in the number of hotels in the Yangtze River Delta region. After the acquisition of Motai, Home Inns Group’ s hotels in Shanghai and the Yangtze River Delta have leapt to number one and far outnumber other brands. In addition, if the family in 2007 to buy Qiduxing, there was a huge loss, but with the last experience, if the family may become more mature, robust.
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Acquired: Motai Shanghai Mei Lin Ge Hotel and Catering Management established Shanghai Motai Chain Hotel Management in 2002. Motai 168 is the first economic hotel with the concept of " motel " in the country. At the beginning of its establishment, the company insists on the strategic positioning of " fashion and innovation " and actively develops the modern large motel.
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  • Spring '18
  • Derrick Hayes
  • Accounting, Home Inns Group

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