The Case Analysis Of Leaseback Operation Mode Applied In Huatian Hotel

The development of modern economy has promoted the global Tourism boom,so that Hotel industry has developed rapidly.Otherwise,with the rapid development of economy in our country,the domestic hotel industry has begun to show rapid development momentum,what leading to an increasingly fierce competitive landscape.In such a severe competition environment,how to implement its own stable,high-speed,sustained development has become an important subject to hotel enterprises.However,in this society,the traditional development model has been unable to help enterprises in the market to win a favorable position.Small capital operation mode is gradually replacing the old competitive strategy,as the foundation of enterprise to establish sustainable competitive advantage.Small capital operation is that an enterprise which uses other enterprises' resources to produce through outsourcing or leasing,and focus on their own research,marketing,terminal sales and other high value-added links in the value chain.Leaseback is that an enterprise sells the assets and then purchases them back for use.In this case,the lessee also has the right of using the assets.The lessee of the asset through leaseback finds a small risk and return guaranteed investment opportunities.Leaseback is a way to achieve small capital operations.Facing the "Eight provisions" that have led to a severe downturn in the high-end hotel sector,the high-end hotel industry had to make a strategic transition.Because of the deep sense of ownership from the view of Chinese,most hotels own the property rights of rooms,which has made them debt and unable to afford more money.Borrowing from banks,not only couples with lots of approval processes,strict loan conditions,limited ways of using capital,but also make financial risk intensified.So,it is not the best choice.Now the price of the rooms measured by historical cost is soaring,but it cannot be realized.To resolve the internal and external problems of Huatian Hotel,it decided to choose small capital operation mode.To expand the financing channels,reduce financial risk,it sold millions of square meters hotel room and then rent it back.In this paper,we use the leaseback as a case study in Huatian Hotel to analyze how Huatian Hotel can apply the operation mode and summarize the success.First of all,this paper introduces the background of this era,the concept of small capital operation,leaseback and its causes,and lights asset operation theory.Based on the competitive strategy theory,the enterprise capability theory and the enterprise strategic management theory,it is not only necessary to deal with the market competition of high-end hotels and domestic economy hotels,but also to face the negative effects of various national policies.So Huatian Hotel has to transform strategic.Strategic transformation requires financial support.Thus through leaseback it allows enterprises to develop their own advantages and access to funds.Secondly,it introduces the whole process of the leaseback operation mode of Huatian Hotel,and analyzes the motivations of this operation mode.Thus it indicates that the mode is the company's own strategic development product.Thirdly,it analyzes the effect of the implementation of small capital by financial indicators.Through the analysis of Huatian Hotel solvency,operating capacity of the financial indicators,it is found that leaseback mode improve its solvency and operational capacity,and promote the development of the company.At the same time,through the analysis of Huatian Hotel business strategy,financing channels,business scope and other non-financial indicators,it is summed up the use of Huatian Hotel leaseback.Finally,combined with the unique mode of small capital operation,it is concluded that Huatian Hotel has adopted the successful operation mode of leaseback,and provided some experience for other enterprises which wish to take the road of leaseback mode.