"Investing in hotels makes the property a money printing machine, which is called a cash cow in the industry."
When talking about the value of hotel investment, Mr. Xie Jinlong, Regional Director of Shenyang Branch of Shenzhen II Development Center of Jin Jiang Hotels (China), expressed his confidence in hotel investment and analyzed his understanding of the multiple value of hotel investment from multiple dimensions.
Xie Jinlong has been with Jin Jiang Hotels (China) for more than 14 years and has also worked in development roles for 10 years, but he still shows great enthusiasm for the hotel industry and development roles.
With years of experience in the hotel industry and professional personal ability, Xie Jinlong shared his professional insights from the aspects of industry trends, hotel investment value, characteristics of Deluxe hotels and stable investment model.
Xie Jinlong, Regional Director of Shenzhen Phase 2 Development Center of Jin Jiang Hotels (China) Shenyang Branch.
Invest in mid-to-high-end hotels.
Enhance investment returns in multiple dimensions.
Q: Do you think investing in hotels is still a good business?
Xie Jinlong: Not only do I think it now, but I think it before, and I always believe that I will always believe that investing in hotels must be a very good choice and a good investment business.
First of all, we need to understand who is investing in hotels, and there are several types:
The first one is the homeowner;The second is the developer;The third is the industry investors who get the results in the industry;The fourth is these companies or groups or individuals who want to transform;The fifth is to be forced to do a hotel, such as a project offset room.
I think these five types of investors are the main investors in this industry at present. Their investment demands and needs are different, for example, the homeowner may want to outperform the rent, idle is idle, outperform inflation, his money is also put in the bank, and the developer is more to do supporting and comprehensive premium.
What wants to transform is more that the existing industry is moving towards the sunset, there is no profit involution, and there is a better new choice.
There are also old investors in the industry. The results they get, they are very professional, they have good property resources, and they also have good funds**, and they have also made a lot of contributions to the rapid development of this hotel.
Then there are some houses such as engineering credits, which must be made into hotels in order to revitalize the property and reflect its value.
They all have a common characteristic, why invest in a hotel, because the hotel is a long-term stable and low-risk relatively worry-free investment project, which brings a good premium to the property itself, and can make this house a money printing machine, which is called a cash cow in our industry.
Q: What are the advantages of chain hotel brands compared to independent hotels?
Xie Jinlong: Chain hotels, especially first-tier chain brand hotels, must be more competitive.
There are probably several aspects: the first is our scale advantage, we have our popularity. With a presence all over the country, our influence can bring better member traffic and better room premiums. The second is that we can systematically reduce the investment risk of investors, so that they can avoid detours and pitfalls. From the early stage of industrial evaluation and site selection, to the intermediate preparation management to the later operation management, and then to the later pricing strategy revenue premium.
From these points, each of them can help him save a lot of money, including the drainage of members in the later stage, which can allow him to have more opening rates. There are more customer source structures, including agreement customers, and he will definitely choose influential cooperation with brands.
In addition, our professional operation team can make the pricing strategy more reasonable, and real-time pricing can maximize the revenue of the project.
Q: From your professional point of view, what do you think was the key to facilitating the signing of the project?
Xie Jinlong: There are three main Xi I have when signing a project.
The first point is to listen first, listen to the customer's ideas, the customer's needs, what are his pain points, and why he wants to do a hotel.
After listening, of course, we must use more professional knowledge to solve these problems for him, solve the problems he needs to solve the most, just like tailor-made clothes, let him wear suitable clothes.
The third point is to make friends with investors, he thinks that you are professional, can solve his problems to meet his needs, and at the same time stand in his point of view, to provide these solutions, so that he feels that he is a friend's point of view, is a partner's point of view, if he can feel that we are working with him at a warm temperature, the team is providing him with systematic solutions, he will definitely be impressed by our comprehensive service content to cooperate from the perspective of a friend, so I believe that the project will be very efficient and achieve a good result。
Higan Deluxe Hotel.
Robust ROI model.
Q: What is the most impressive contract project for Deluxe Hotel?
Xie Jinlong: I was very impressed by our project in Yanji. After we got in touch, I think there are relatively many individual customers in Yanji, more than 60% of the customers are young people born in the 90s, including family customers, and now after becoming an Internet celebrity city, there are many tourists in the south who want to experience the ice and snow in the Northeast and Korean food and clothing.
I think the logic of these individual customers may need more differentiated products to hit this market, and on this basis, I recommended the Xi'an Deluxe Hotel to him, and at the same time convinced the homeowner, because the house is owned by the owner, and he also hopes that there will be a big brand that can provide value for the value preservation and appreciation of the house.
I made a move, and now that I think about it, it's actually very important. Invited the rent and investors to Shenyang, came to the Xi'an Deluxe Hotel Shenyang Railway Station Branch to visit, and fully displayed the product features of our lobby restaurant, including the separation of the three areas of the toilet in the room, as well as the black and white classics, to the homeowners and investors.
After visiting our hotel, we were fully recognized for our products. In the end, the project was successfully signed with our team. After getting the renderings, the investors were very excited and found that these Korean elements could be reflected in the background wall of the lobby, and the soft decoration of the lobby, including the future breakfast of the restaurant, was also a local breakfast in Yanji.
Renderings of Yanji West Market Yanbai Store of Xi'an Deluxe Hotel.
Q: What do you think are the advantages of Deluxe Hotel?
Xie Jinlong: I think it has several core advantages that impress me, the first is that the return on investment model of Xi'an Deluxe Hotel is very good, 13-140,000 can make the landing effect of 10,000 standard mid-to-high-end hotels, and can also achieve the selling price of more than 180,000 high-end hotels.
The second advantage is that the Deluxe Hotel is a one-store-one-design, which is a design concept that is very competitive among competing hotels, especially the traditional standardized model hotels.
Deluxe Hotel has a French elegant product tonality, which brings differentiated competitive advantages, and can also combine some of the investor's own ideas with the style of the product and the local cultural attributes to turn it into a hotel with a story.
If a hotel can have a sense of story and cultural attributes, it will definitely be able to become a blue ocean market in the regional red ocean competition.
The third is that from the perspective of my personal team, I communicate with the leaders and colleagues of the Deluxe Hotel team very efficiently, which can provide investors with more service content, more value-added services, and improve efficiency.
Q: What are your expectations for the future development of Deluxe Hotel?
Xie Jinlong: Actually, I still have a lot of expectations, especially hope that in the next year, the Xi'an Deluxe Hotel will be completed in the first and second tier cities across the country, and the current benchmark stores, especially in the Northeast, can bring some good experience and data.
Our team will also sign more Deluxe hotels next year, and I hope that Deluxe hotels will get better and better!