Catching up
If Top Star is going to be a major force in the budget hotel industry, it
will have much ground to make up. Since the first hotel was set up this June in
Nanning, the company says it now has 17 hotel projects going. By the end of the
year, the chain is expected to expand its number of hotels to 21 with an total
investment of 200 million yuan (US$25 million). Its goal is to have 200 hotels
in the Asia-Pacific region, with 120 around China, by the end of 2009.
"We will not consider initial public offering within five years," He said.
"Money isn't a problem; branding is the top priority."
So far, He says the average occupancy rate of 74.6 per cent at the Nanning
hotel is encouraging, considering his expectation of about 60 per cent.
He says major cities, secondary cities in East and South China, and scenic
cities, such as Lijiang in Southwest China's Yunnan Province, are all perfect
locations.
Last month, Top Star relocated its headquarters from Shenzhen to Shanghai.
Last year, 5.7 million foreign and 80 million domestic travellers came to
Shanghai. This year, Shanghai expects to attract 6 million foreigners and 95
million domestic tourists.
"Shanghai is a place where many international companies assemble, and we
expect to be closer to customers and partners," He said.
Chen Xueye, a spokesman for the Shanghai Tourist Industry Management
Committee, added: "Shanghai's position as an economic hub and the 2010 World
Exposition will create huge opportunities for hospitality."
In business as in war, the wisest advice is to "know your enemy." He, for
one, takes the adage seriously. And why not? Top Star is, after all, the
newcomer in the neighbourhood.
"We only take Ibis as our direct competitor," He said. "Whenever I go to
Tianjin or Chengdu, I stay with Ibis. I study them and try to learn from them,
but not blindly follow."
(China Daily 10/05/2006 page3)
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