The First Group Economy Hotel Development Strategic Research

Budget hotels have become a trend and investment attraction in the hospitality industry due to less investment and quicker return. Although some international bands running budget hotel have penetrated Chinese market along with some emerging domestic bands, the competition in this field is not fierce yet. As a major SOE, Beijing Capital Development Holding Group (BCDH) has owned ten hotels and achieves a medium size among hotel management companies. In face of bright prospect and high ROI presented by budget hotel, if it cannot seize the opportunity, its long-term development will be definitely hurt. Therefore, the paper starts with the current situation of BCDH's hotel business and analyzes the competition environment, advantage, disadvantage, opportunities and threads enjoyed by budget hotel development. Then it comes up with the strategic objective and idea for BCDH to develop budget hotel and designs related implementation approach and protective measures.Meanwhile, the paper works out a detailed implementation plan and related protective measures for BCDH to roll out budget hotel by taking into consideration both the current development of BCDH's hotel business and world-class management practice and theory.The paper analyzes the environment in which BCDH competes with other players to develop budget hotel in terms of strategic environment and the feasibility for it to do so in terms of strategic capacity. It puts forward a practical rollout package ranging from strategic objective and specific decision-making to strategic implementation and protective measures.