dc.description.abstract | Since the implementation of reform and open policy in China, the China 5-star hotel industry have gone through a progress of testing, exploring, communicating, cooperating, developing and booming. The industry took the advantage of the high speed economic development happening in China, and held an amazing achievement in China's hotel market.
The economic crisis in 2008 brought the world economic to a recession status, and slowed down the develop speed of China's economic and GDP had no more two-digit growth. China's 5-star hotels are now facing an intense circumstance;another challenge may make the things worse is the new national policies trying to reform of politic、economic、social and culture system. So, China's 5-star hotels need to seriously review their own business model and trying very hard to find out the elements to generate the net profit and developing power, and prevent their hotels eliminated by the external environment and the violent market competition.
The target hotel is now facing a long-term lose operations, and is trying hard to change its business model for escaping from the red sea competition. There are two purposes of this thesis, first, to study when China entered the twelfth 5-year national planning period, what kind of the changes and challenges are now waiting for hotels in China ? second, to study a near 10-year old hotel, the target hotel, how to challenge its external fierce environment and finds out necessary internal reforming activities, and how to set up useful strategies to improve operational performance, furthermore, becomes stronger and flexible enough to against competition.
This thesis uses 8 cross national model, 8 cross business model and 8 cross accounting model to analyze the target hotel's performance during two different investment phases in the past nine years, and find out what causes make the poor performance nowadays, on the other hand, to find out if the target hotel modify its brand strategy or use area strategic alliances in its business model, could any progress happened after accounting projections.
There are two conclusions of this study summarized as follows:
1. According to external environment analysis and 8 cross business model analysis, The target hotel is now facing an intense competition which is the same circumstance for the single-body hotel in China, not only be difficult to increase brand equity for the addition of revenue and net profit, but also be very weak to face the strong competition and cost increasing, both conditions make EBIT, ROIC negative. So, the target hotel needs to modify its business model to solve the problems raised by 8 cross business model analysis inside this thesis.
2. This thesis concludes two alternatives for the target hotel to change its business model, either one of franchisee agreement or area alliance agreement can increase its operational performance, but according to the finance projection, this thesis suggests the target hotel to become a franchisee of an international hotel group to enlarge its brand equity and improve its operational performance . | en_US |