Research On The Budget Hotel Regional Expansion Strategy

The budget hotel came out with the development of modern hotel industry. Different from traditional hotel, the budget hotel is a new kind of hotel style. Since the1990s, the budget hotel has got intention by the hotel industry. As the booming of China’s vacation and business trip, the budget hotel has come to the stage of market integrating and innovating instead of the copy stage.The distribution of budget hotel in China is obviously regional, this kind of hotel spread so fast. Though the expansion is fast, the earning is not as fast as the branch hotels’growing. As we can tell that the overall expansion can’t make profit to the hotels, especially to the middle or small budget hotels, so the regional expansion strategy is really important to them.On the basis of studying the literature of the budget hotel, the author summary and analyze the related theory of budget hotels. From the angle of the author define the budget hotel, and then analyze its meaning and characteristics. The author also reviewed and summarized the development of budget hotels, both of foreign and domestic. The foreign budget hotels developed maturely and China’s budget hotels still in the beginning of development.On the basis of analysis of the domestic and international economy hotel, the author analyzes the development of budget hotels in Shandong Province. And then classify the mode of expansion of China’s budget hotels, so we can find the trend and related theories. The author also takes the Grace Inn as a case, analyzes its background and competing, and then makes the regional expansion strategy.Finally, the author summarizes the analysis of the whole paper, and gets conclusion as followings:the middle or small budget hotels should take the regional factors into consideration, make the right expansion strategy. The strategy includes combining the expansion with focusing, and make multi-level brand. At the end the author make an prospect to the future, they will expand fast and be important part of hotel industry.