Star Hotel Investment Market Analysis

With the integration of the global economy, the hotel industry in China has developed surprisingly, which faces resources share and market share under the whole new internationalization environment. However, many well-known hotel blocs on the world scale is entering the hotel market in China on large scale and trying to be the first to take it up. As the high-star hotel industry in China is lack of the market analysis before investment depending on scientific theory, the development of the hotel market is not known completely. In such a case, it causes the severe imbalance between supply and demand. As a result, the profitability of the high-star hotel industry in China comes down every year and there is some difficulty in operating the hotel.Since the new century, the high-star hotel industry begins to expand newly. At the same time, it happens to be in the busy period of building or reconstructing the high-star hotel. Many men of insight in the hotel industry think that the constructive and rational thought of investment in high-star hotel should be encouraged. However, the market analyses before investment in China focus more on quantitative analysis than on qualitative analysis. Such market analysis is deficient in segment market, the concept of target market, flexible market survey. The market before investment has not been analysed scientically and deeply, not being to the point because of lack of system, aiming and science. As a result, it is difficult to make an investment decision feasibly and practically in a few high star hotels. The investment decision is subject to ratification. It is a great significance for the high-star hotel in China to regulate its industry, draw capital and develop sustainably, which is based on the research on the theory and the approach to the market analysis before investment. The research is through the integration of quantitative analysis and qualitative analysis with insight, science and practicality.The research on the market analysis before investment in the high-star hotel in the world comparatively focuses on the behaviour of consumption in the hotel, on the method to segmenting the market and to the market demand. But most market analysis before investment in the high-star hotel in China follows foreign researches. While such market analysis before investment focused on marketing the hotel several years ago, there have been researches on analysing hotel market in recent years. Most of the researches are dependent on qualitative analysis. The theoretical research on the market analysis before investment in the high-star hotel has not become systematic and is not applied to practice.Based on the research on market analysis before investment in the high-star hotel,the new thought for this paper creates a set of systematic theories, which will be applied to the market analysis before investment in a certain five-star hotel of Quanzhou that Fujian Coal Company is planning to build. This paper explores investment environment, market potential, competitive market, regional location, service products and investment positioning of this five-star hotel and their interrelated links, from which the comparatively rational and accurate investment plan for this five-star hotel is made. This paper puts forward that the hotel investment will be lowered and the customer value will be increased through accurate positioning and scientific design.