Analysis On The Effect Of Series M&A Of JINJIANG HOTELS

Benefiting from the rapid development of the economy and the increasing consumption level of the people,China's limited service hotel industry continues to grow.However,in recent years,with the gradual transformation of the incremental market to the stock market,the competitive situation of China's limited service hotel industry has been upgraded.Some hotel groups have embarked on the road of mergers and acquisitions,in order to occupy more market share and rapidly improve their competitiveness.From 2010 to 2018,Jin Jiang Hotel has acquired four enterprises in a row,making it the largest hotel group in China and the second-largest in the world,which has attracted the attention of researchers and people inside and outside of the industry.Some researchers believe that a series of mergers and acquisitions can bring good effects and improve competitiveness,however,some researchers also believe that series of mergers and acquisitions may lead to insufficient integration and negative effects,which will make Jin Jiang Hotel "lose more than gain".Based on the dispute between the practice and theory of M & A,this paper studies the effect of serial M & A of Jin Jiang Hotel.Firstly,this paper combs the current situation of research on the effect of M & A in domestic and overseas by the method of literature review.Secondly,a variety of research methods are used to analyze and summarize the industry background,advantages and disadvantages,and even the motivations of Jin Jiang Hotel's serial mergers and acquisitions.Finally,this paper makes a three-dimensional analysis of the merger effect by using the theory of resource allocation,the theory of economies of scale and the theory of cooperative effect.Research shows that the series of mergers and acquisitions of Jin Jiang Hotel bring positive effects on resource allocation,market share,growth ability and economies of scale,but also bring negative effects on cost control ability,asset operation capability and profitability.According to the research conclusion,this paper puts forward three suggestions,that is,paying attention to the selection of acquisition targets and transaction mode,thinking highly of the integration capabilities of serial M & A,and last but not least,attaching importance to the risk control of serial M & A,so as to provide reference for the future development of M &A in Jin Jiang Hotel and even the hotel industry in China.