Bottom line: Accor’s new tie-up with China Lodging looks like a smart deal that will bring together complementary partners, and is likely to spark a new round of similar cross-border partnerships in the year ahead.
China Lodging moves in with Accor
A development I’ve been predicting for quite a while has finally happened in China’s lucrative but crowded hotel space, with news of a major new tie-up between global giant Accor (Paris: AC) and domestic budget operator China Lodging Group (Nasdaq: HTHT), which also calls itself Huazhu. The tie-up will essentially see China Lodging take over operation of much of Accor’s China portfolio, and could ultimately see Accor purchase the Chinese company outright. The move could also spark a round of similar tie-ups that sees other major foreign operators pair up with Chinese partners like Home Inns (Nasdaq: HMIN). Read Full Post…
Bottom line: Qunar could experience some short-term loss of business due to the withdrawal of Home Inns properties from its site, and its open platform business model makes it prone to such problems.
Home Inns checks out of Qunar lodge
Signs of turmoil are coming from the lodge operated by Qunar (Nasdaq: QUNR), with word that the online travel agent has just lost a major customer with the abrupt departure of leading budget hotel chain Home Inns (Nasdaq: HMIN). The departure of such a major customer, if true, would mark a big blow to Qunar, which had a recent similar break-up with chief rival Ctrip (Nasdaq: CTRP). Home Inns’ decision is motivated by different reasons than Ctrip’s, which I’ll explain shortly. But the 2 spats highlight the fact that Qunar’s business model, which centers on an open platform for third-party travel agents, is far more prone to problems than traditional travel sites that directly sell products like hotel rooms and air tickets to consumers. Read Full Post…
The following press releases and media reports about Chinese companies were carried on November 15-17. To view a full article or story, click on the link next to the headline.
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Major Hedge Funds Piled Into Alibaba (NYSE: BABA) In Third Quarter (Chinese article)
eHi Car Services (NYSE: EHIC) IPO Delayed By False Information Claims (Chinese article)
Bailian Group Takes 10 Pct Of Shanghai Disneyland (NYSE: DIS) Operator (Chinese article)
China Mobile’s (HKEx: 941) TD-LTE Subs Reach 50 Mln (English article)
Home Inns (Nasdaq: HMIN Removes All Listings From Qunar (Nasdaq: QUNR) (Chinese article)
Bottom line: Jin Jiang is emerging as China’s first global hotel brand, but its inexperience and focus on property ownership with its first major acquisition are likely to produce poor results for the campaign.
Jin Jiang checks into Europe
Domestic hotel stalwart Jin Jiang (Shanghai: 600754; HKEx: 2006) is quickly emerging as China’s hotel company to watch on the global stage, with word that it’s on the verge of a deal to buy Louvre Hotels Group, Europe’s second largest operator. The acquisition would be the biggest so far for Jin Jiang, which is China’s only hotel operator to make any serious moves outside its home market. Frankly speaking, I’m a bit surprised that state-owned Jin Jiang is leading this particular global expansion campaign, since I would have expected one of the country’s private hotel operators to be at the forefront of this initiative. Read Full Post…
The following press releases and media reports about Chinese companies were carried on November 12. To view a full article or story, click on the link next to the headline.
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There’s a bit of buzz in the travel space today, with word of major new initiatives in the hotel and airline sectors for global hotelier Hilton Worldwide (NYSE: HLT) and domestic real estate titan Wanda Group. The former will see Hilton roll out the welcome mat for one of its main low-cost brands in China, taking aim at names like Home Inns (Nasdaq: HMIN) and China Lodging Group (Nasdaq: HTHT). The latter move has Wanda’s talkative founder Wang Jianlin discussing a potential new airline launch, as his company also makes a big push into the travel and leisure sector. Read Full Post…
Wanda Group is already one of China’s leading commercial property owners, and now it’s taking aim at the fast-growing travel sector with word that it’s purchased a major travel agency in affluent Zhejiang province. There’s no financial detail on the deal, but the purchase should help to bolster Wanda’s position that has already made it China’s leading travel company just 2 years after its formation. The group could ultimately become one of China’s leading integrated travel and leisure companies if it eventually lists, providing an attractive alternative to the crowded field of publicly listed firms like online travel agent Ctrip (Nasdaq: CTRP) and leading hotel operator Home Inns (Nasdaq: HMIN). Read Full Post…
The following press releases and media reports about Chinese companies were carried on October 14. To view a full article or story, click on the link next to the headline.
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After 13 Year Wait, Beijing Approves Universal Studios Theme Park (Chinese article)
China’s building economic slowdown isn’t dampening enthusiasm from hoteliers, with word that Starwood (NYSE: HOT), operator of the Sheraton and Westin chains, is about to double the number of its top-end luxury properties in the market. Starwood’s announcement comes just 3 months after US rival Hyatt (NYSE: H) announced its own major China expansion. (previous post) I should be fair and point out quickly that Starwood’s latest expansion isn’t all that large in terms of actual numbers, involving the opening of just 4 new properties. I should also point out that this kind of plan was probably the result of at least 3 or 4 years of planning, meaning work began well before China’s current economic slowdown. Read Full Post…
Leading budget hotel operator Home Inns (Nasdaq: HMIN) has just released its latest results that show continuing weakness at the China lodge, as operators take a double hit from the nation’s slowing economy and a building boom that has led to overcapacity. Home Inns’ latest results continue a trend from last month, when China Lodging (Nasdaq: HTHT), operator of the Hanting chain of budget hotels, announced similar preliminary results that point to a period of pressure on the sector that is likely to last for the rest of this year and quite possibly linger into the first half of 2015. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 13. To view a full article or story, click on the link next to the headline.
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MIIT to Issue FDD-LTE Licenses on May 17 – Source (English article)
Facebook (Nasdaq: FB) Said To Take Steps To Open A China Sales Office (English article)
Home Inns (Nasdaq: HMIN) Reports Q1 Financial Results (PRNewswire)
Hunan Satellite TV, CCTV Fight Back Against Online Video Sites (Chinese article)
