Because the U.S. stock 188bet sports betting is undervalued，China concept stocks return to A-shares after privatization，has become a good way。

March 188bet sports betting year，Baofeng Technology successfully dismantled the VIE structure (returned to A shares，deduced a gold-absorbing myth of more than 30 daily limit。Similar wealth-making myths have become the driving force for the return of Chinese concept stocks。There are media statistics，Since 188bet sports betting year，30 Chinese concept stock companies have announced privatization plans，Total transaction volume reaches US billion，Higher than the previous six years combined。

In the wave of privatization of Chinese concept stocks，188bet sports betting is no longer willing to be lonely。From the previous news until December 8，An announcement from the Beijing Tourism Hotel pierced this layer of paper。Boutique Hotel Announcement，Planned to purchase assets through cash + stock issuance，Directly and indirectly holds 100% equity of Home Inns Group。The total transaction amount is about 149.2.6 billion yuan。

The return of Chinese concept stocks is often shrouded in market value、Part of the "resentment" that the stock price is undervalued，188bet sports betting’s return is no exception。Some opinions，The most fundamental reason for the privatization of Home Inns is that the valuation is too low。The relevant person in charge of Homeinns also said in an interview with a media in Beijing，The main reason for 188bet sports betting’s delisting plan is also the low valuation of the US stock market。

Is Homeinns really undervalued?Is 188bet sports betting’s business model really confusing to the U.S. stock market??From fiscal year 2011 onwards，Homeinn’s net profit began to decline;First Quarter 2012，Homeinn’s total operating income reached 12.6.4 billion yuan，But the overall loss is as high as 1.0.3 billion yuan。In the first three quarters of this year，Homeinn’s operating conditions are hardly optimistic，Revenue、Net profit and other indicators have declined to a certain extent。As a key profitability indicator for budget hotels, RevPAR (average actual operating revenue per available room)，In the first quarter of this year, there was a year-on-year decrease of 5.5%。

Some insiders believe，The myth of 188bet sports betting’s budget hotel has been shattered，With manpower、Increase in rental costs，Coupled with the homogeneous competition of a large number of opponents，The crazy expansion of its budget hotel franchise model in the past has come to an end，Unable to raise large amounts of money in US stocks。Currently，Transformation into mid-range hotel，Looking for more profit points has become a way out that Home Inns has to take，This also makes Home Inns face a greater hunger for funds。Backed by financial sponsors，Returning to China for financing is undoubtedly the true meaning of Homeinns’ move。

Budget 188bet sports betting myth busted

June 2002，Homeinn officially established。188bet sports betting’s positioning is very clear，It directly draws on the mature model of foreign economic hotels，Abandoned the luxury facilities of star-rated hotels、Luxury lobby、Catering services, etc.，Only retain the core functions of accommodation。And its price is also in the price range of 200 yuan per night。

Afterwards，188bet sports betting Inns began its crazy expansion。By September 30, 2011，The total number of Homeinns’ franchised and franchised stores has exceeded that of direct-operated stores for the first time、And completed the acquisition of two hotel chain brands, Seven Stars and Motel 168，Become a "hotel group" that manages multiple chain brands，The total number of its hotels exceeds 1,400。This allowed Homeinns to create the myth of budget hotels。

But the good times did not last long，Excessive growth rate、And fierce market competition，It also completely dragged 188bet sports betting into the quagmire of losses。From fiscal year 2011 onwards，Homeinn’s net profit began to decline;First Quarter 2012，Homeinn’s total operating income reached 12.6.4 billion yuan，But the overall loss is as high as 1.0.3 billion yuan。

In the next few years，188bet sports betting Inns in Revenue、Profit、Occupancy rate、Average house prices and other important indicators have seen a sustained decline，House prices that have remained around 200 yuan for many years，Can no longer afford property depreciation、Pressure of rising labor costs。

And in 2015，The bad situation is even worse。Financial report display，188bet sports betting’s hotel occupancy rate in the first quarter was 79.3%，RevPAR (average actual operating revenue per available room) is RMB 120，Decreased by 5 year-on-year.5%;Total income is approximately RMB 14.700 million yuan，YoY decrease of 0.1%，Net loss attributable to ordinary shareholders was RMB 37.6 million，Net profit for the same period last year was RMB 74.9 million，150% decrease year-on-year。

“Even operating income dropped year-on-year in the first quarter，This is unusual，Increased number of stores，But revenue dropped。”Chief Knowledge Officer of Huamei Hotel Consulting Agency、Senior Economist Zhao Huanyan thinks，188bet sports betting’s first quarter financial report shows that the supply and demand relationship of budget hotels has undergone major changes，This may be the end of massive expansion。

To this，Homeinn CEO Sun Jian also admitted，“Since the establishment of 188bet sports betting Inns Hotel Group in 2002，The first quarter of 2015 was the most difficult period we have ever experienced。”

Next，The situation in the second and third quarters is not optimistic either。August 12，188bet sports betting Inns released its second quarter financial report，Among them, Homeinns’ total revenue in the second quarter is 16.6.7 billion yuan，Year-on-year decrease of 1.8%;Net profit attributable to ordinary shareholders is 72.1 million yuan，The year-on-year decline is as high as 33%.4%。

Total revenue in the third quarter decreased by 1 year-on-year.1%，Reached 18.55.9 billion 188bet sports betting，Net profit attributable to ordinary shareholders is RMB 1.45.6 billion 188bet sports betting，Net profit RMB 2 compared with the same period last year.45.5 billion 188bet sports betting, down 40%。

In the second quarter report，Facing the reasons for the decline in performance，Sun Jian, CEO of 188bet sports betting Inns Group explained，Facing the sluggish market environment，Homeinn continues to take important and necessary measures to make long-term investments in the company's business，But in view of the impact of the economic environment，Revenue growth and room revenue remain under pressure。"Based on these factors，And new opening costs，All have had a certain impact on our overall financial performance。”

However，In Zhao Huanyan’s opinion，The golden age of rapid development of budget 188bet sports betting has passed。“Nowadays, the supply and demand relationship of budget 188bet sports betting has changed after the rapid increase;The second is compared with the earliest，Both labor costs and property rental costs increased by 300%。Therefore，Since 2010，Business conditions have been declining”，Zhao Huanyan told a reporter from China Economic Network。

September this year，Zong Xiangxin, President and Chief Operating Officer of Homeinns 188bet sports betting Group, once stated frankly in public: In absolute terms, the development speed of Homeinns has not slowed down much，About 400 hotels will be opened this year。But the relative development speed will indeed slow down，When the scale was small, the growth rate was 80%-90% every year，Now the growth rate is only about ten or twenty percent。

Transforming into a mid-range 188bet sports betting but being surpassed by latecomers

The shattering of the myth of budget hotels does not only happen to 188bet sports betting Inns。7 days、Hanting, just like 188bet sports betting, cannot escape this disaster，The products and services of several budget hotels are seriously homogeneous，They have to rely on lowering housing prices to compete for customers and market share。RevPAR, the key profitability indicator of budget hotels, has declined year by year。Some media pointed out，The industry average profit per room per room per day for many budget hotels can only reach about 10 yuan。188bet sports betting Inns suffered more losses due to failure in transformation。

Under the fierce competition among budget hotels，Most domestic budget hotels have to turn their attention to the mid-range market with greater potential。Zhao Huanyan also said: "In this case，The 188bet sports betting can be upgraded to a mid-range brand 188bet sports betting in an ideal location，Increase house prices and income”。

Jinjiang Group launched the Jinjiang Metropolis brand in 2013，As of December 2014，Also exceeded 40，Covering 26 cities across the country，It is expected to reach 100 companies 188bet sports betting next three to four years。

Plateno Group’s mid-range coverage is more comprehensive，There is a James Bond coffee shop that combines coffee culture with 188bet sports betting，ZMAX trendy fashion that targets trendy people，There is hope of winning over female consumers，As well as four major mid-range brands such as Lavande, which continues to lead in store opening speed。

Early April this year，Homeinns launches the mid-range hotel brand "Homeinns Select"，This brand is targeted at young business people，The design focuses on British style，After the launch of the brand，The mid-range business chain brand "Hotel" launched by 188bet sports betting in 2008 has been upgraded to a mid-to-high-end hotel。

188bet sports betting Select instead of Yitel Hotel，The latter upgrades to a higher consumption level。Seems like a reasonable excess, but it also implies Rujia’s helplessness。I have to say something about He Yi，In the mid-range hotel market，188bet sports betting is indeed one of the early adopters。But，The middle-end transformation strategy was not successful。

Hotel is a new hotel chain brand launched by Homeinns 7 years ago。2008，China’s budget hotel market is highly homogeneous，188bet sports betting Inns wants to strive for personalization in decoration and service。Hotel is the brand that 188bet sports betting Inns positioned in the mid-range hotel market at that time。And after that，As a competitor, Huazhu launched All Seasons Hotel in 2012，It copies the price of Heyi，But the cost was reduced by simplifying decoration materials and facilities，Selected toiletries、Bedding、Carpets are cheaper too。

“Many people regard 188bet sports betting’s Heyi and Huazhu’s All Seasons as the same mid-range brands，But their designs and costs are different。” Xu Luowei, brand director of 188bet sports betting Group, once clarified to the media。Survey data from "First Financial Weekly" in April this year，The cost of a single room in Heyi is 120,000 yuan，Only 90,000 yuan for the whole season。

Cost is always one of the factors that franchisees care about most。Whether I choose to join All Seasons or Heyi Shang，Franchisees will carefully calculate the return on investment of each 188bet sports betting brand。The cost of rent and employee salary for the same size property is not much different。The biggest cost difference lies in the room cost and sales price。Join Heyi，The franchisee wants to renovate the room at a price of 120,000 yuan per room，The price of hardware renovation of the entire building is about 24 million yuan。Join the full season，means that franchisees only need to spend 18 million yuan。It is obviously more cost-effective to invest in the whole season。

The current situation of Quan Ji and He Yi is undoubtedly the best evidence for the above inference。2014，The national average occupancy rate for the whole season is 93%，35 new franchise stores。Heyi’s franchise is basically at a standstill，188bet sports betting Inns did not build more directly-operated stores for it。

“New products have a finalization process。"Xu Luowei said。But the 7-year finalization period seems too long。Sun Jian originally hoped that Heyi’s housing prices could gradually increase after operating for a period of time，This is a 188bet sports betting worth investing in。

Public information display，A few years after All Seasons appeared，Sun Jian has always emphasized the difference in products between Heyi and Quanji: Quanji is an upgraded version of the economical model，Not really mid-range，He Yicai。But the market will not take into account Sun Jian’s statement，188bet sports betting’s Yi Hotel undoubtedly lost to latecomer All Seasons Hotel。

Can BTG give 188bet sports betting what it wants?

In terms of scale，BTG is a giant among Chinese tourism conglomerates。Its business covers almost the entire industry chain，From hotel、Travel agency、Car rental to shopping、Catering、Convention and Exhibition、Entertainment、Scenic Area。Such a huge stall，Let the cooperation between BTG and 188bet sports betting be full of imagination。

However，It’s worth noting，He Wanda [Weibo] Group is blooming in various regions across the country，BTG Group’s business，Mainly focusing on Beijing and its surrounding markets。From Beijing Exhibition Hall、Xidan Shopping Mall、National 188bet sports betting、China International Travel Service、Shouqi Group、Quanjude，Even Beijing Wildlife Park，Capital from Beijing Tourism Group is infiltrated。

China Economic Net reporter learned，This time, he presided over the acquisition of 188bet sports betting’s “Boutique Hotel”，In fact, it is a hotel business of Beijing Tourism Group that has been listed，Through acquisitions and mergers and creating own hotel brands，Already owns 160 hotels，And manage including Kempinski、A number of international five-star hotel brands including Sheraton Great Wall Hotel。

Zhao Huanyan thinks，Major shareholder BTG is willing to delist Home Inns。BTG acquires Home Inns through additional issuance，Return the 188bet sports betting Curve to A-shares，BTG will become the only hotel group in mainland China with a complete range of high, middle and low-end hotel brands。

“From the perspective of BTG’s own 188bet sports betting resources，Most of its high-end hotels，There are vacancies in the mid- to low-end range，After incorporating Homeinns, it can supplement the budget 188bet sports betting business。Introducing Homeinns focuses on three aspects: first，Budget hotels have gained momentum in recent years，The industry itself has good prospects;Second，Yado、Economic hotels such as Yinju have already tasted the benefits of O2O experiential sales marketing model，But in view of the small scale of the brand，The market space is still large。Learn from its experience，BTG can achieve greater development with the help of Homeinns platform;Third，With the help of Homeinns platform，BTG can embed its brands，Achieving greater profits and faster access to the platform。”Xie Ying, an analyst at RET China Commercial Real Estate Research Center, believes。

An industry insider told reporters，BTG has a presence in mid- to high-end hotels，The acquisition of 188bet sports betting also focuses on the low-end segment、Advantages in budget hotels。Home Inns has been emphasizing the transformation to mid-to-high-end，Then after BTG acquires Home Inns，If 188bet sports betting develops towards mid-to-high-end，Wouldn’t it compete with Beijing Tourism Group at the same stage??Moreover, BTG’s development scope is mainly concentrated in Beijing and surrounding areas，Then how much help a national hotel like 188bet sports betting can really help still needs time to test。

For the above statement，December 11，The reporter once called the Secretary to the Board Office of Beijing Tourism 188bet sports betting，But no reply was received as of press time。

Anyway，It is a common phenomenon that acquisition is easy but integration is difficult。Looking at the marriage between 188bet sports betting and Beijing Tourism，The challenges from both sides cannot be ignored。First，It is currently unclear whether the management team will change，If no changes occur, the status quo can be maintained，If changes occur, the new core team will inevitably make new directions for the company's strategy，These will affect the future development of the enterprise。

Secondly，Beijing Tourism Group is a large state-owned enterprise，188bet sports betting Inns is a standard private enterprise，Both are in cost control、There are many differences in personnel management and other aspects，This is also something the industry is quite worried about。Can corporate culture and other factors be integrated well，Directly related to the future hotel business integration effect of both parties。

Behind the privatization of 188bet sports betting Inns: the temptation of 188bet sports betting or the temptation of money?

In the 9 years since 188bet sports betting was listed on NASDAQ，The U.S. market is not satisfied with 188bet sports betting’s performance。Although its number of hotels has expanded from 82 at the beginning of its listing to 2,787，But the expansion of staying in the low-price hotel market failed to increase the stock price。

188bet sports betting’s stock price reached its lowest level in 2008 at only 7.，Even if the privatization agreement is disclosed，The company’s stock price is still stuck at the -30 level，As "bland" as when it first came on the market。

It’s worth noting，188bet sports betting’s privatization has been shrouded in 188bet sports betting’s share price、In an atmosphere of underestimation。There are industry opinions，RuRuJia is indeed developing well in the Chinese market，But most of 188bet sports betting’s hotel projects are in China，In fact, overseas investors don’t know much about the Chinese market，And due to the rapid development of the Chinese market，Some models and strategies are very suitable for the Chinese market but are not completely understood by overseas investors，This has also caused 188bet sports betting’s stock price and market value to be underestimated in the US stock market，Since it is underestimated，It might as well be delisted，This is the most beneficial for Home Inns。

As the protagonist of this privatization，188bet sports betting has made a similar statement。June 15th this year，"Beijing Business Daily" once reported，Stated by the relevant person in charge of Homeinns，The main reason for 188bet sports betting’s delisting plan is also the low valuation of the US stock market。

Especially this year, a large number of Chinese concept stocks have launched privatization，Returning to A-shares and being favored by funds，188bet sports betting Inns is of course regarded as another undervalued Chinese concept stock。

Since Baofeng Technology landed on the GEM on March 24，Performed more than 30 consecutive daily limit，The stock price soared from 7 yuan to a maximum of 327 yuan，The stock price increased 40 times，Not only the “most exciting A-share”，It is also the driving force behind the return of Chinese concept stocks。Baofeng Technology’s total 188bet sports betting value exceeds 30 billion yuan，Beyond Youku Tudou launched in the United States，8 times the 188bet sports betting value of Xunlei [Weibo]。

Some organizations think，The valuation of Chinese concept stocks is low，The key reason is that the trading system of the U.S. capital 188bet sports betting is different from that of A-shares，U.S. stocks can be shorted、Delisting，And the investment ideas of the two markets are very different。Comparison of the performance of leading Chinese concept stocks and A-share industries，The gap in 188bet sports betting value between the two 188bet sports betting leading stocks is very obvious。April this year，Chinese concept stocks in the CDN/cloud computing field have a 188bet sports betting value of 1.3 billion yuan，The 188bet sports betting value of A-share Wangsu Technology is 24.4 billion yuan，Wangsu Technology is Lanxun’s 18.2 times;Oriental Fortune in the Internet field has a 188bet sports betting value of 49.9 billion yuan，It is 82 of 900 million yuan in the financial sector of Chinese concept stocks.6 times;The 188bet sports betting value of Guangdong Media in the field of outdoor media is 12.8 billion yuan，22 times the 800 million yuan of Chinese concept stock Hangmei Media。As of yesterday’s close，Lanxun 188bet sports betting value 1.2 billion yuan，Wangsu Technology’s 188bet sports betting value is 44.3 billion yuan;Oriental Fortune’s 188bet sports betting value is 92.2 billion yuan，The 188bet sports betting value of the financial industry is more than 600 million yuan;The 188bet sports betting value of Guangdong Media is 16.5 billion yuan，The 188bet sports betting value of Hangmei Media is 2.1 billion yuan。

Anyway，The myth of Baofeng Technology’s sudden wealth is attracting more and more Chinese concept stocks to return。December 10th 188bet sports betting year，According to Beijing Youth Daily，Since 188bet sports betting year，30 Chinese companies have announced privatization plans，Total transaction volume reaches US billion，Higher than the previous six years combined。

It is also difficult for 188bet sports betting to resist the temptation of money。Sun Jian, CEO of Home Inns Group, once publicly stated，The launch of privatization shows the founding and major shareholders of Home Inns are interested in the Chinese market、Confidence in national brands，It is also a good opportunity for the strategic transformation and development of Home Inns Group。

The "transformation" mentioned by Sun Jian is undoubtedly a key point of this privatization。Previously，There was a view that，One of the reasons for 188bet sports betting’s delisting from the United States is the need for its own strategic transformation and development。188bet sports betting’s service output and brand influence are not dominant in the US market，Its ability to attract money in the capital market is not strong，The current financing capacity of China’s stock market will be much stronger，Delisting and fully focusing on the Chinese market is inevitable，In addition, Beijing Tourism Group has assets of more than 40 billion yuan，Obviously it can provide huge financial support for Homeinns’ transformation。

An industry insider told reporters，Privatization is likely to be just a small step in Homeinns’ plan，Home Inns may enter the A-share market next。“The myth of 188bet sports betting’s budget hotel has been shattered，The US stock market has lost the conditions for large amounts of financing，Unprecedented pressure。Diversified transformation is undoubtedly the way out，But it’s hard for a clever woman to make a meal without rice，The development of Home Inns requires money。Backed by the sponsors of Beijing Capital Tourism，Planning for financing after returning to China is undoubtedly the true meaning of Homeinns’ move”。

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