Study On The Project Developing Of YL Express Hotel

Originating from America, economy hotel has developed into a mature business management model in countries with developed tourism such as America and European countries. Economy hotel, which is different from traditional star hotel, instead of offering "unnecessary" service like leisure, dining, meeting and so on, only provides quality limited-service, namely B&B and breakfast&bed. It gains low cost superiority and differentiation advantage over traditional hotel industry by its distinctive positioning. The idea of economy hotel was not introduced to China until1990s. With the popular process of Chinese tourism, travel changed into an every day consumer product from a luxury, which opened. a wide market for economy hotel. HMIN, the Chinese economy hotel brand listed on the NASDAQ Stock Market further stimulated the investigation of this industry. All of a sudden, economy hotels appeared everywhere and showed a status of rapid development. Under this circumstance, many irrational traders blindly followed suit and investigators suffered from benefit lost because of improper managements. Therefore, it is necessary to study the project development of economy hotel from the beginning of investigation in order to protect investigators and avoid blind investment.During the research of the project development of the economy hotel, it is feasible to start from the investment environment, the business model of the certain project, investment income and venture analysis. By analyzing the investment environment, research of the market situation of the economy hotel industry can be conducted and judgment of whether the market environment is suitable for the industry can be made. Through the analysis of business model, the understanding of business management is further deepened, which provides guidance and reference for future management. Through analyzing the investment income and venture, the investment economic indicator can be precisely proved, helping avoid blind investment and lay the foundation for investment decisions. Therefore, investors have a chance to avoid benefit lost to a greatest degree.This thesis is a systematic study based on the real investment example of Company A, YL Express Hotel project. First of all, analyzing the investment environment, market requirement and competition state in Zhengzhou where the project locate on the premise of fully understanding the status quo of China’s tourism and economy hotel industry. Second, deconstructing and analyzing the business model of the hotel according to the practical situation of the project. Through the previous two procedures, the market outlook and potential of the project are clarified. Third, measuring and calculating the financial index of the project on the basis of its investment budget and income forecast. Analyzing its investment income and venture as well as making a suggestion of how to control risk. At last, a program of how to operate the project is presented.Through the qualitative and quantitative analysis for the YL Express Hotel project, a scientific and feasible conclusion draws as:there is a great market opportunity and development potential for the YL Express Hotel project; its business model is clear and the investment income is stable, thus it is a well-received and feasible investment project. According to the result of the analysis, simple operation projects and marketing plans are provided for the implementation of the YL Express Hotel project, which offer valid reference for the project.