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SPECIAL REPORT: HOTELS’ 325 CLICK THESE FOR A DEEPER DIVE INTO THE 325 2012 HQ INFO HISTORICAL DATA: ROOMS HISTORICAL DATA: HOTELS CHINESE OPERATORS VAULT INTO THIS YEAR’S TOP 10. HIS YEAR’S HOTELS 325 200,000 guestrooms, according to STR. see some large growth in numbers. RANKING is one for the history In all, 25 Chinese fi rms ranked in the top Consolidation in this sector could create books, marking the fi rst time a 300 this year. a very large player.” China-based company appears in Damien Little, a Singapore-based One of the biggest movers on this the top 10 — and it isn’t just one. director at consultancy Horwath HTL, year’s list is Bangkok-based Minor Shanghai Jin Jiang International says the numbers are a refl ection of the International. Minor jumped 144 spots to Hotels and Home Inns & Hotels massive growth of China’s hotel industry 114th, more than doubling its inventory Management, ranked ninth and 10th, over the last decade. While the interna- thanks in part to the takeover of Oaks respectively, have experienced explosive tional players have dominated upscale Hotels & Resorts. Minor is also in the growth, vaulting from relative obscurity and luxury development across the coun- process of rolling out the Avani Hotels & just a few years ago to their present lo y try, it has been the domestic players that Resorts brand, while its core Anantara positions. Both have grown almost exclu- have focused on the budget sector. Hotels, Resorts & Spas brand is aiming to sively domestically, leaving them plenty “The furious pace of growth of budget more than double its footprint by 2015. of room to continue their rapid ascent. hotels is what has propelled these two The top 10 brands remain traditional More generally, 17 of the top 18 com- companies,” Little says. “We should names from the global powers. But that panies on this year’s list added inventory expect to see continued growth in the will almost certainly change next year, in 2011, despite a signifi cant slowing of budget sector at a strong pace, and as with Home Inns (11) poised to move into new openings and projects as the pre- such these two groups should continue the top 10, and it could conceivably climb downturn cycle empties. Of course, to consolidate. Other budget groups as high as 7th in the 2013 ranking. much of the new inventory is coming such as China Lodging Group, 7 Days Clearly, the club of hotel industry from — where else? — China, which Group Holdings and GreenTree Inns giants is no longer the exclusive domain boasts a massive pipeline of more than Hotel Management Group Inc. will likely of European and American companies. www.hotelsmag.com July/August 2012 HOTELS 23 SPECIAL REPORT: HOTELS’ 325 HQ ROOMS HOTELS 1 - 50 INFO HISTORY HISTORY 2011 2010 2011 2011 2010 2010 RANK RANK COMPANY HEADQUARTERS ROOMs HOTELS ROOMs HOTELS 1 1 InterContinental Hotels Group Denham, England 658,348 4,480 647,161 4,437 2 2 Marriott International Inc. Bethesda, Maryland 643,196 3,718 618,104 3,545 3 4 Hilton Worldwide McLean, Virginia 633,238 3,843 604,782 3,671 4 3 Wyndham Hotel Group Parsippany, New Jersey 613,126 7,205 612,735 7,207 5 5 Accor Paris, France 531,714 4,426 507,306 4,229 6 6 Choice Hotels International Inc. Silver Spring, Maryland 497,205 6,178 495,145 6,142 7 7 Starwood Hotels & Resorts Worldwide Inc. Stamford, Connecticut 321,552 1,090 308,736 1,041 8 8 Best Western International Phoenix, Arizona 311,894 4,086 308,692 4,038 9 12 Shanghai Jin Jiang International Hotels Shanghai, China 193,334 1,243 107,019 707 10 13 Home Inns & Hotels Management Shanghai, China 176,824 1,426 93,898 818 11 9 Carlson Rezidor Hotel Group Minneapolis, Minnesota 165,663 1,076 162,143 1,064 12 – Magnuson Hotels Spokane, Washington 140,700 1,804 139,776 1,792 13 10 Hyatt Hotels Corp. Chicago, Illinois 132,727 483 127,507 453 14 11 Westmont Hospitality Group Houston, Texas 98,404 659 116,913 813 15 23 7 Days Group Guangzhou, China 94,684 944 56,410 568 16 15 Meliá Hotels International Palma de Mallorca, Spain 90,264 354 87,000 350 17 18 Louvre Hotels Group Paris, France 85,708 1,075 78,230 1,023 18 16 LQ Management Irving, Texas 84,302 828 83,635 820 19 19 Extended Stay Hotels Charlotte, North Carolina 76,225 685 77,200 683 20 25 China Lodging Group Shanghai, China 73,600 639 50,438 438 21 24 Interstate Hotels & Resorts Arlington, Virginia 70,119 387 50,666 242 22 21 Vantage Hospitality Group Coral Springs, Florida 66,342 1,045 60,081 973 23 22 NH Hoteles Madrid, Spain 59,052 397 58,687 397 24 28 Whitbread Dunstable, England 48,725 626 44,062 593 25 27 MGM Resorts International Las Vegas, Nevada 46,633 20 46,533 17 26 31 Toyoko Inn Co. Tokyo, Japan 45,722 238 41,926 217 27 52 GreenTree Inns Hotel Management Group Inc. Shanghai, China 44,725 577 21,600 240 28 34 The Walt Disney Co. Burbank, California 42,108 50 32,536 34 29 29 Caesars Entertainment Corp. Las Vegas, Nevada 42,000 35 42,931 33 30 26 Barceló Hotels & Resorts Palma de Mallorca, Spain 41,565 163 46,922 182 31 30 Riu Hotels & Resorts Playa de Palma, Spain 41,544 105 42,000 107 32 32 Fairmont Raffles Hotels International Toronto, Canada 36,771 100 37,958 100 33 33 Red Roof Inns Columbus, Ohio 36,100 345 35,786 342 34 35 Travelodge Hotels Thame, England 35,200 510 31,953 463 35 38 Shangri-La Hotels and Resorts Hong Kong, China 30,217 72 29,408 70 36 39 Scandic Hotels Stockholm, Sweden 29,910 160 27,204 147 37 37 Millennium & Copthorne Hotels London, England 28,797 101 29,532 103 38 44 HK CTS Hotels Co. Beijing, China 27,620 77 23,964 74 39 40 Pyramid Hotel Group Boston, Massachusetts 27,064 69 25,864 64 40 20 Iberostar Hotels & Resorts Palma de Mallorca, Spain 25,680 79 67,400 101 41 42 Okura Hotels & Resorts Tokyo, Japan 24,806 78 24,809 79 42 41 Nordic Choice Hotels Oslo, Norway 24,696 163 25,819 169 43 43 Pandox Stockholm, Sweden 24,500 118 24,800 122 44 45 Pillar Hotels & Resorts Irving, Texas 24,000 234 23,900 233 45 48 White Lodging Merrillville, Indiana 23,677 158 23,157 154 46 56 BTG-Jianguo Hotels & Resorts Beijing, China 22,767 77 20,245 69 47 46 Club Méditerranée Paris, France 22,743 72 23,816 84 48 54 Barony Hotels & Resorts Worldwide London, England 22,708 78 21,308 74 49 50 The Prince Hotels Tokyo, Japan 21,404 55 22,077 56 50 47 Highgate Hotels Irving, Texas 21,341 43 23,362 43 26 HOTELS July/August 2012 www.hotelsmag.com SPECIAL REPORT: HOTELS’ 325 HQ ROOMS HOTELS 51-100 INFO HISTORY HISTORY 2011 2010 2011 2011 2010 2010 RANK RANK COMPANY HEADQUARTERS ROOMs HOTELS ROOMs HOTELS 51 64 GF Management Philadelphia, Pennsylvania 21,006 129 17,204 107 52 53 Value Place Wichita, Kansas 20,300 175 21,576 174 53 – Realstar Hospitality Toronto, Canada 20,186 165 – – 54 57 Grupo Posadas Mexico City, Mexico 19,992 115 20,006 113 55 70 Kempinski Hotels Geneva, Switzerland 19,545 71 15,399 64 56 59 Four Seasons Hotels and Resorts Toronto, Canada 19,155 86 18,758 84 57 51 The Ascott Ltd. Singapore 19,000 119 22,000 152 58 58 John Q. Hammons Hotels & Resorts Springfield, Missouri 18,988 78 18,988 78 59 60 B&B Hotels Brest, France 18,418 245 18,192 242 60 66 APA Group Tokyo, Japan 18,165 76 16,857 74 61 61 InTown Suites Atlanta, Georgia 17,978 138 17,978 138 62 62 Mövenpick Hotels & Resorts Glattbrugg, Switzerland 17,961 72 17,360 68 63 63 Drury Hotels St. Louis, Missouri 17,952 128 17,259 125 64 73 America’s Best Franchising Inc. Atlanta, Georgia 17,927 281 14,979 241 65 65 Omni Hotels & Resorts Irving, Texas 17,250 50 16,970 50 66 67 TPG Hospitality Cranston, Rhode Island 16,975 63 16,823 63 67 93 Grupo Cubanacán Havana, Cuba 16,234 71 12,700 60 68 71 Maritim Hotels Bad Salzuflen, Germany 15,836 51 15,177 51 69 72 Interchange & Consort Hotels York, England 15,390 278 14,980 275 70 82 Steigenberger Hotels AG Frankfurt, Germany 15,321 84 13,502 79 71 74 Aimbridge Hospitality Plano, Texas 14,888 71 14,795 71 72 77 Tsogo Sun Holdings Bryanston, South Africa 14,715 94 14,342 89 73 80 Crescent Hotels & Resorts Fairfax, Virginia 14,367 68 13,642 65 74 76 Rewe Touristik Hotels & Investments Cologne, Germany 14,353 52 14,616 56 75 131 Remington Hotel Corp. Dallas, Texas 14,196 70 8,390 49 76 99 Narada Hotel Group Hangzhou, China 14,176 50 12,032 42 77 75 Columbia Sussex Corp. Crestview, Kentucky 14,170 43 14,775 45 78 85 Fiesta Hotel Group Ibiza, Spain 13,713 48 13,256 46 79 69 Chartres Lodging Group San Francisco, California 13,686 26 15,411 33 80 92 Taj Hotels Resorts and Palaces Mumbai, India 13,652 112 12,802 108 81 91 Davidson Hotels & Resorts Memphis, Tennessee 13,464 47 12,803 45 82 83 Las Vegas Sands Corp.
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  • Successful Growth Strategies of Three Chinese Domestic Hotel Companies

    Successful Growth Strategies of Three Chinese Domestic Hotel Companies

    www.sciedu.ca/jms Journal of Management and Strategy Vol. 3, No. 1; February 2012 Successful Growth Strategies of Three Chinese Domestic Hotel Companies Yu Qin, Ph.D., Associate Professor Head of Department of Hotel Management, School of Tourism Management, Beijing International Studies University, Beijing, China, 100024, PR China E-mail: [email protected], [email protected] Howard Adler, EdD. (Corresponding author) C.B. Smith Professor of Hotel Management Director, Center for the Study of Lodging Operations, Purdue University School of Hospitality and Tourism Management Marriott Hall, West Lafayette, Indiana 47906 Tel: +1-765-494-5998 E-mail: [email protected] Liping A. Cai, Ph.D. Professor Director, Purdue Tourism and Hospitality Research Center, Purdue University School of Hospitality and Tourism Management Marriott Hall, West Lafayette, Indiana 47906 E-mail: [email protected] Received: January 1, 2012 Accepted: February 2, 2012 Published: February 15, 2012 doi:10.5430/jms.v3n1p40 URL: http://dx.doi.org/10.5430/jms.v3n1p40 Abstract This paper explores the business level strategies implemented by the top three domestic Chinese lodging companies in the economy segment. Through interviews with the management of the three companies, the authors found the essential elements of their strategies were innovative positioning, keeping cost low, rapid expansion, continuous innovation, focus on quality consistency, extensive training and several indigenous Chinese cultural operational practices. Implications for future for research and practices are also discussed. Keywords: Business level strategy, Hotel growth strategies, Low cost strategy, China indigenous operational practice, China domestic hotel companies 1. Introduction Since the beginning of the new millennium, several Chinese domestic hotel companies, namely, Home Inn, Jinjiang Inn, Motel Chain and have achieved unprecedented growth and impressive performance.