Recently，There is news，Wanda Group plans to dissolve its partnership with foreign hotel chain management groups，Independently operates about 10 luxury hotels，And plans to independently operate all new hotels that will open in the future。Aroused the industry’s attention to the changes in the management model of “Chinese owners + foreign management teams” in the domestic hotel industry。

In fact，Since the Hongqiao Sheraton was rebranded as Hongqiao Jinjiang in 2017，Hilton (NYSE:HLT)、InterContinental (NYSE:IHG) and other foreign high-star hotel brands continue to stage "retreat" dramas in domestic first-tier cities。Looking at domestic hotel groups，Huazhu(NASDAQ:HTHT)、Jinjiang(600754.SH)、Beijing Travel(600258.SH) after completing their respective mergers and reorganizations，Continuously try the layout of mid-to-high-end hotels，And they have taken back the hotels that were originally managed by foreign investors。

Industry insiders told Blue Whale Sankei reporter，Domestic hotel companies have “withdrawn their licenses”，On the one hand, it proves the improvement of domestic hotel management level，On the one hand, it is also conducive to the reshaping of the domestic hotel industry pattern。

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When foreign hotels first entered the Chinese market，Catching up with the dual benefits of national policies and market welfare，The management model of “Chinese owners + foreign management team” has been formed，Most foreign-funded hotels on the market exist under the asset-light franchise model。Foreign hotel management teams also bring customer source advantages to Chinese owners、Management experience，Provides reference for the early development of domestic hotels。

With the rise of national capital，Changes in consumption structure，The advantages of international hotels are gradually disappearing。According to data from Changjiang Securities survey，The proportion of foreign-invested accommodation enterprises above designated size decreased from about 4% in 2004 to about 2% in 2016，Market share shrunk by half;Also，The year-on-year growth rate of turnover of foreign-invested enterprises is also significantly lower than the industry average，Continuous year-on-year declines from 2013 to 2016。

As pointed out by Yang Honghao, associate researcher at China Tourism Academy，The advantage of early international brands is their high brand reputation、High service quality、Operation management system is highly efficient，And it can bring a large number of international customers, etc.。But with the changes in the hotel market structure，These advantages gradually disappear or are no longer important。

Undeniable，The changes in the hotel market structure are crucially related to the development of OTA websites。Blue Whale Sankei reporter’s data discovery from Trustdata and Zhihui Monitoring，November 2017，Ctrip、Where to go、The total number of monthly active users of Fliggy has exceeded 22.13 million，International hotel direct sales channel customer source bonus advantage is no longer。The OTA sales channels of domestic hotels that started as budget hotels in the early days have matured，Continuously improving direct sales channels。

Mr. Ling, who has many 188bet online sports betting years of experience in high-end hotel management, told Blue Whale Sankei reporters，It is not difficult to make profits in five-star hotels，It’s just that the cycle time from investment to return is longer。So after the customer source problem of domestic hotels is solved，Usually choose to operate mid-to-high-end hotels by your own team，To reduce operating costs。

Of course，Except for customer source factors，There is also the need to cultivate the development of one’s own brand。The person in charge of Jinjiang Group previously stated in an interview with the media，After Shanghai Jing’an Hilton changed its name to Jing’an Kunlun Hotel，The management company was changed to Jinjiang Preferred Hotel Management Company, a subsidiary of Jinjiang Group，Become developed by Jinjiang Group itself、Management、Five-star hotel that cultivates brand。

Change the license plate to reduce operating costs

Previously, domestic owners entrusted foreign groups to manage hotels，Infrastructure construction investment costs、International brand management costs are too high。Previously disclosed information from Westin Hotel，In 2017, the hotel owner paid a total of 18.4 million yuan in basic management fees and incentive management fees to international brands，Accounting for about 6% of hotel operating revenue.1%，There are also marketing fees and distribution system and reservation service fees。

Mr. Ling told reporters，General management fees of international hotels are basically around 2%-3%，6% is relatively high。

In comparison，The management expenses of domestic hotel 188bet online sports betting management companies are much lower。It can be seen from the annual report of the domestic Nanjing Jinling Hotel Management Company，The company currently owns 136 hotel chains (including 120 five-star hotels，16 four-star hotels)，2017，2017，The average management fee charged by hotel management is about 60 per hotel.990,000 yuan，Revenue accounts for about 1%。Compared with foreign-funded hotels，The fees of domestic hotel management companies are obviously lower，In the context of increasing difficulty in controlling land costs，Obviously，Domestic hotel investment return period is shorter。

However, the problems faced by domestic hotels after the license change should not be underestimated。After Wanda Sofitel was renamed Wanda Vista earlier this year，Many users have reported reduced service levels、Problems such as aging facilities。With the withdrawal of foreign hotel management companies，Many supplies provided in the hotel have also been replaced，Among them，The bath products were replaced by unknown products from the internationally renowned brand Lanvin，Also makes many customers dissatisfied。

After the Blue Whale Sankei reporter reported the above issues to the relevant staff of Wanda Vista Beijing，The other party replied，The current hotel license renewal time is too short，"If the guest is not satisfied with the service，We will do our best to solve it。”

From the perspective of occupancy rate，Mr. Ling said，Foreign-funded hotels have relatively strong ability to bring guests in first-tier cities，A complete membership system will bring many foreign guests to high-star hotels in first-tier cities。After changing cards，It may affect the occupancy rate of foreign tourists in the short term，leading to a decline in single store performance。

Compared to possible instability in occupancy，After cost reduction, hotel revenue is more guaranteed。Feng Shaohui, co-founder of Hotel Property Rights Network, told Blue Whale Sankei reporter，After brand change，Important positions will definitely be adjusted，Even if the performance of a single store dropped slightly，But judging from the overall profitability of the hotel，It’s still worth it。

Reshaping the industry landscape

Although there may be many "discomforts" after the hotel changes its license，But as the 30-year management contracts between the earliest five-star hotels in China and foreign management companies expired，Changing licenses may become a survival situation that many foreign-funded hotels have to face。

Zhao Huanyan, chief knowledge 188bet online sports betting officer of Huamei Hotel Consulting Agency, told Blue Whale Sankei reporters，From a macro perspective，National policies and market environment also support the development of domestic private brands，Putting it into the hotel industry is brand confidence，That is, hotel license renewal will become an inevitable trend。

Facing the crisis of card replacement，Foreign-funded hotels are beginning to seek a more localized way of survival。Many foreign brands choose to rely on Chinese partners to expand their territory，This is actually a franchise model。Take the InterContinental Hotel as an example，May 2016，InterContinental Hotels announces opening of Holiday Inn Express franchise;November 2017，Announced that Crowne Plaza Hotels and Resorts will open a franchise model in China。In franchise mode，The hotel owner can organize his own team management，And owns all the corresponding intellectual property rights behind the brand。

Another way is for domestic hotels to cooperate with overseas brands through external investment。According to corporate annual report，Since Huazhu and Accor reached cooperation，With the help of local capital，AccorHotels accelerates domestic expansion，The number of hotels increased from 98 to 149，An increase of about 52%。May 15，Huazhu revealed in its first quarter report，The company has obtained Accor 4.5% equity，Currently owns a Mercure hotel owned by AccorHotels、Franchise of ibis Hotels and ibis Styles，Co-development rights of Grand Mercure Hotel and Novotel Hotel，Improved the layout of high-end hotels。

Foreign-funded hotels try to localize their transformation，It is really good for domestic hotels。Changjiang Securities analyst said，The cooperation between Chinese and foreign hotel groups will give full play to their respective advantages，In "Market + Brand"、“Economic + High-end”、The three aspects of "domestic + overseas" complement each other's advantages，Domestic hotel companies will benefit significantly，While sharing 188bet sports betting app download the cake of the domestic market，Get help from overseas partners to expand overseas。

*Source of this article:Blue Whale Finance, Author:Li Danyu, original title：《Domestic hotels take back management rights，Sheraton、Hilton took the lead in “withdrawing”》.