Research On Investment Prospect And Risk Analysis Of The Service Apartment

With the high-speed development of the China's national economy and the coming of the Peking Olympic Games, China, the country with an ancient civilization and abundant tourism resources will meet a new chapter for development. Almost every country in the world puts the economic cooperation with China to a most important position. Inspired by the Peking Olympic Games, China's traveling landed property will meet its golden age. As a new member of the traveling landed property, the Service Apartment will be paid close attentions. Chengdu, the best city for traveling in China, is facing its turning point of the development. Because of the government's guiding thinking about the General Headquarters Economy, Chengdu will attract more and more transnational corporations to set up their general headquarters. All of these create extremely appropriate chances and conditions for the development of the Service Apartment.The investment analysis methods have been used to help the investors to forecast the risks and repayment in the real estate. At present, four investment analysis methods are the most frequently used for making investment decisions, which are Net Present Value Methodology, Internal Rate of Return Methodology, Real Options Methodology and Fuzzy Comprehensive Evaluation Methodology. Compared with the Real Options Methodology and Fuzzy Comprehensive Evaluation Methodology, Net Present Value Methodology and Internal Rate of Return Methodology could be mastered and comprehended more easily, meanwhile the conditions they need could be obtained more lightly. So this article would choose the Net Present Value Methodology and Internal Rate of Return Methodology to analyze the investment prospect of the service apartments and the scriptoriums. Through the comparison between the service apartments and the scriptoriums, it appears that the investment to the service apartments can produce more profit. And it's the main idea of this article.The author firstly reviews and neatens the researches of the Service Apartment, defines the term of service apartment and briefly introduces the correlative theories. Then the article gives a description about the service apartment including the development course and the comparisons with the budget hotels.It is very necessary for the investors to understand what kinds of risks would exist in the investment of service apartments. The article gives an elaborate explanation about the investment risks of the service apartments. Because the service apartments come into our China just for a short time, there are still so many problems in the developing process. In the last part, the article gives some suggestions about how to evade the investment risks and how to standardize the market of the service apartments.