【 Building materials network 】Recently, the three economic hotel giants, such as Home, 7 Days and Hanting, announced their first quarter financial reports of 2011. The financial reports showed that the net profits of the three enterprises in the first quarter fell from last year. Industry insiders believe that the rapid expansion of economic hotels leads to high investment and cultivation costs of new stores, which is the main reason for the decline in net profit. When domestic economy hotels opened in a large scale, their expansion mode was gradually concerned by the industry. Choose direct marketing to ensure quality, or join in to reduce costs? In fact, many budget hotel brands try to find the symbiosis of the two, but it is difficult to achieve at this stage.
　　
Home Inn compromises risks to franchise
　　
According to media reports, on May 13, nearly 100 consumers at Home Inn Liuliqiao in Beijing received the notice to withdraw from the hotel immediately. According to the lease agreement provided by the store manager, they rented the building from United Airlines of China to operate Home Inn for 10 years, but only for 4 years at present. Not long ago, the building was purchased by Beijing Jingtuke Industry and Trade Group at a cost of tens of millions, and Home Inn was asked to vacate the house. Although the hotel refunded the prepaid expenses of the consumers, it still caused inconvenience to the consumers.
　　
On May 15, the reporter was at Home Inn near Heping West Bridge in Beijing door I saw that he posted a notice of "closing for decoration". Its staff told the reporter that it is currently undergoing internal transformation and is not open to the public. Industry insiders believe that in recent years, economic hotels have expanded significantly. In order to complete the opening plan, many enterprises will choose to join the channel, which naturally brings risks.
　　
According to relevant statistics, since 2001, the average annual growth rate of the overall scale of economic hotels in China has far exceeded 50%. According to the financial report of Home Inn, as of March 31, 2011, Home Inn had 454 rental hotels and 394 franchise stores. The increase in the proportion of franchise stores makes it difficult for the group management to reach, and it is difficult to take standardized supervision and management on some franchisees, which is easy to cause hidden dangers.
　　
Frequent accidents, difficult to reduce expansion speed
　　
Despite the accident, the three industry giants did not reduce their expansion speed.
　　
In the interview, the principals of Hanting and 7 Days said that in order to ensure quality, the future expansion will continue to focus on the development of direct stores. The relevant person in charge of 7 days said that the expansion of 7 days would focus on the second and third tier cities. For the market that is already familiar with, it will continue to expand its scale mainly in the form of direct stores in 7 days; For the markets that have not been entered before, they mainly enter in the form of managing direct stores. Because this way is more reliable. Investors are more familiar with the local market than hotel groups, have stronger business relationships in the local area, and can find more suitable high-quality properties. This is also a win-win approach.
　　
At the same time, the relevant person in charge of Hanting also told the reporter that in the high speed of store expansion, enterprises need to maintain the balance between expansion and management, as well as the balance between expansion and capital. While expanding the scale, the system also needs to follow up. Every enterprise will encounter challenges. It is expected that Hanting will reach the level of 1000-2000 stores in the future, and the construction of corporate culture needs to be strengthened.
　　
Rational expansion and expansion of business freedom
　　
Industry insiders pointed out that for the cost of opening stores, under the premise of fixed capital, franchise stores have more expansion advantages than direct stores. At present, the competition of local economic hotels is actually the competition of the number and scale of stores. Therefore, old brand chain hotels such as Jinjiang Star also choose to join and expand, but it is based on a rational premise.
　　
As of March 31, 2011, a total of 457 Jinjiang Stars had opened; Among them, 154 direct stores and 303 franchise stores were opened. It can be seen that the expansion of Jinjiang Star is also based on franchise, supplemented by direct marketing. The spokesman of Jinjiang Star said that Jinjiang Star followed a rational expansion route and would not only emphasize the expansion speed. According to the reporter, the expansion speed of Jinjiang Star has slowed down significantly in recent years other tycoon.
　　
"Give more freedom to the franchisees, but at the same time output management and provide assistance." This is the main policy of Xu Shuguang, Chairman of GreenTree Inn, to develop stores in recent years. As Greentree has not yet been listed, its financial report data is not open and transparent. Xu Shuguang told reporters that in the first quarter of this year, 60% more stores were added than last year. At present, Greentree has stores in more than 100 cities across the country, and the net profit increased by 50% compared with the same period last year. The proportion of GreenTree Inn franchise stores accounts for 3/4. It is expected that the future plan of opening stores will be based on franchise, supplemented by direct marketing, to assist franchisees in hotel management. It is hoped that with the help of the frankness of the whole service management system, it can resonate with the franchise partners.
　　
Joining in unexpectedly drives the surrounding economy
　　
In the franchise chain hotels with uneven quality, we can find different unexpected gains from the direct stores. Beijing Greenhouse Lama Temple Store is a franchise store, which is located in No. 46 Courtyard of Fangjia Hutong and also a cross-border art district. The theater, theme restaurant, creative shop and bar facilities in the area are complete. Du Kun, the store manager, told the reporter that the income of the whole art district increased by 20% when the owner of the 46th courtyard joined Greentree Inn. At present, the No. 46 Courtyard of Fangjia Hutong is centered on this hotel to expand the market. Du Kun said that the headquarters of Greentree Inn would train the staff of Lama Temple stores and conduct regular unannounced investigations.
　　
In addition, Greentree's business philosophy is more flexible, and its next step will be to decorate the Lama Temple store, so that its decoration style and architecture reflect the artistic style of Fangjia Hutong No. 46 Courtyard. This is difficult to achieve in the joining of other budget hotel brands.
　　
In fact, many budget hotels try to find symbiosis between direct marketing and franchise. The relevant person in charge of Hanting told the reporter that the financial risk of the franchise store is small, but the management efficiency of the direct store is higher. At present, Hanting has more direct stores than franchise stores in proportion, and its focus is still on direct stores. However, the changes in the Chinese market are still very fast. Hanting will consider according to the standard of the enterprise. If the future alliance environment becomes more mature, it will not rule out adding Go Speed of joining.
　　
Industry insiders believe that at present, economic hotels are constantly expanding in order to maintain their position in the industry, and it is difficult to find a balance between direct marketing and franchise on the premise of ensuring costs. But in the final analysis, it is more important to ensure the brand quality.
　　
Chain economy hotels are in a dilemma
　　
The current economy hotel market has moved from the blue ocean period to the red ocean period with fierce competition. The brand economy hotel that has become the climate has been accelerating its expansion. At present, the blind expansion of the economy hotel market is mainly reflected in disorderly hotels without brand chains. Large domestic hotel chains such as Home Inn, Hanting Inn and 7 Days Inn still account for a very small proportion of 300000 hotels.
　　
Does the economy hotel choose to expand its stores by joining or direct selling? Xu Shuguang believes that this choice requires companies to consider their own actual situation, and any form of growth has its rationality. Indeed, China's economy hotel brand is still in its infancy, and we cannot compete with Ibis brand, which has been in the international hotel market for 50 years. But we have a broad market and unlimited development potential.
　　
Du Bulu, one of the founders of Accor Group, once said: "For franchise stores key It is to control the hardware consistency. Buying property is beneficial in the long run. Ten years later, half of our opponents will disappear. "
　　
The period of economic hotels will eventually pass, and we have no way of knowing which brands will go later. Whether choosing direct operation or joining in, economic chain hotels should keep their brands in the end. Maybe a small mistake in decision-making will make the brand in a hopeless situation.