Case Study On The Acquisition Of "Orange Hotel" By "China Hotel"

In the second decade of the 21 st century,against the background of the saturation of China's hotel industry and the upgrading of Chinese consumption,the hotel industry is faced with not only the rising rent costs and labor costs,but also the increasing inability of standardized chain hotels to meet the needs of consumers.Through mergers and acquisitions to expand the market size,improve market share and expand the brand matrix,to create the development of the whole industry chain,the direction of the hotel industry breakthrough.Large hotel groups in active horse enclosure,small hotel groups are difficult to avoid the fate of the acquisition.This paper discusses the two typical hotel acquisition cases in China's hotel industry,focusing on the motivation,price and performance of the acquisition and the development of the hotel industry from the strategic perspective of industry development and enterprise development.This will benefit the development of China's hotel industry.This paper first introduces the situation of relevant cases,and then analyzes the merger with the theory of strategic mergers and acquisitions through the analysis of strategic drivers,reasons for the success of the acquisition,price analysis and performance analysis of the four parts.It can be seen from the strategic motivation analysis that this acquisition is a key acquisition made by "China hotel" based on its long-term development strategy,in order to achieve the mid-to-high-end transfer of the industry chain.Based on the analysis of the reasons for the success of the acquisition,it can be found that "China hotel" grasped the opportunity of acquisition and achieved the success of the acquisition with its price advantage.Two inspirations can be drawn from the two analyses :(1)the development direction of the enterprise must be formulated from a strategic perspective;(2)the selection of acquisition targets must be made from a strategic perspective,in line with the company's long-term development strategy.From the analysis of the price,it can be found that the acquisition price is far higher than the traditional financial valuation and the general level of premium in the industry,which seems unreasonable,but from the strategic point of view,the price is worth.Therefore,the price of m&a should not only be determined from the perspective of pure financial assets,but also from the strategic perspective.Through performance analysis,it can be concluded that;"Huazhu hotel" has achieved the strategic goal,consolidated the position of the industry,and "orange hotel" has achieved better development.