Transnational Hotel Expansion: Characteristics, Basic Conditions And Operating Mechanism

Since the second part of the 20th century, there has been an international expansion in the world hotel industry. When it comes to the 80th and 90th of the 20^th century, with the continuous deepen of the economic globalization, multinational hotels were also involved in a rapid expansion. Accompany with the quick development of the multinational hotels, there comes an urgent need of theoretical conclusions and deep diggings of the multinational hotels which are a unique form of multination companies. And it is necessary to go and look into the inherent laws and the reasons of such a rapid expansion. That is to say we should know what are the basic conditions of the expansion; what are the leading form of the expansion; what are the special different characteristics compared with ordinary multination company; how do these basic conditions occur and how to manipulate and develop these conditions continuous.After the researches of theories of multinational companies and direct investments and service multinationals , we found that the ready-known theories cannot supply an overall and systematic explanation of the inherent laws of multinational hotels'worldwide expansion, although it can provide in some degree. THIS paper, combined with the theories of elements flowing, international divisions, knowledge capitalizations, along with the main clues:"non-equity expansion is the leading patterns—international divisions analysis—basic conditions of expansion(different from those of manufacture companies.)—Operating mechanism—the directions to Chinese international local hotels'expansion"lead us to find that non-equity expansion actually is controlling the core sector (technical and marketing sector) of global value chain. The head quarter controls the important elements such as the head quarter's knowledge, skills, management and information. All these certifies that the basic conditions of multinational hotels'expansion is knowledge capital .The accumulation, international flowing and international control of which in turns happen to be the a leading role of the expansion.Firstly, THIS paper makes a clearance and conclusion of the relative domestic and overseas literature on multination hotels .Then, combining the theories of multinational companies of the World Economics field, the paper makes a analysis of the law of expansion to conclude that knowledge capital is the basic conditions of the expansion; to discover that what are the main elements of knowledge capital. And make a module hypothesis of the theories of that the core of the expansion is the capital knowledge. After that, the writer conducted a survey to the professional managers in Chinese hotel industry. And after this survey, THIS paper deduces a proof that the core of the expansion is the knowledge capital.Because the basic conditions of the multinational hotel's world expansion is the knowledge capital's international flowing, the process of multinational hotels'world expansion is also the process knowledge flowing. Then THIS paper makes an analysis of the knowledge capital's accumulation, flowing and the controlled process. Finally, THIS paper discusses the present situations and questions of the Chinese local hotel group's internationalization process .And points out the model effect which world famous transnational hotels's expansion provides, proposes concrete and innovative suggestions to the Chinese local hotel group. Thus those findings play an instruction role to the practice of Chinese local hotel group's expansion.