I Have 100 Million Stores

Chapter 374 The whole city of Sansha City is boiling! (Chinese)

If it is a permanent 50% discount, others may not know it, but Sun Binhong, who has worked in the high-end hotel industry for more than ten years, understands the market very well!

This price will reduce the profit margin of the hotel infinitely!

In the end, it will even reach the point where there is no money to be made at all!

Become the kind of business that is purely losing money and making money!

It is worth mentioning that in five-star hotels, there are actually many different grades, and the charging standards are also very different.

Grades are mainly divided according to standards and services.

Among them are the top luxury ones, such as St. Regis, Luxury Collection, Ritz-Carlton of Marriott Group, Waldorf Astoria and Conrad of Hilton Group, Park Hyatt of Hyatt Group, Four Seasons, Mandarin Oriental, Banyan Tree, The Peninsula, Bulgari, Fairmont, Sofitel Legend and many more.

In this type of luxury hotel, the price of the most common room is around 2,000, and the price of the most expensive presidential suite is tens of thousands.

Of course, the services and hardware facilities of this type of hotel are top-notch, not only has personal butler service, but also its hardware equipment is far ahead of other five-star hotels. Designed and furnished by the world's best designers.

As long as you stay in this kind of hotel, you can quickly feel the difference brought by top luxury hotels.

Its location is also generally in prime locations, common in super first-tier cities.

The second category can be called luxury, such hotels include Marriott Hotel, JW Marriott Hotel, Westin Hotel, InterContinental Hotel, Grand Hyatt of Hyatt Group, Shangri-La, Kempinski, etc. .

The price of ordinary rooms in this type of hotel is generally between 1000-2000 yuan.

Compared with the top luxury hotels, this type of luxury hotels is much worse.

In addition to the relatively standard selection of hotel decoration and materials, there are two most obvious differences. The first is that the one-on-one exquisite service of the personal butler is not felt, and the second is the size of the room.

The room size of the top luxury category is between 45-70 square meters, and the room size of luxury hotels is generally between 35-48 square meters.

The third category is common standard five-star hotels. Hotels in this category generally adhere to the basic standards of five-star hotels, and the price range ranges from 300 to 1200. The prices in this category are obviously more affordable. up.

It can be seen from this that not all five-star hotels are very expensive. The main reason is that domestic officials do not recognize the titles of six-star, seven-star and other higher-star hotels, so five-star hotels have created a very expensive feeling. Illusion, after all, the most famous ones are indeed more expensive.

In Sun Binhong's impression and understanding,

Most of the hotels under the Xie Group are standard five-star hotels, and there are only a few luxury five-star hotels.

The original Qianda Hotel in Sansha City was not among the few luxury hotels.

This means that the price itself is not high. If there is a 50% discount in this case, one can imagine how low the price will eventually be.

Maybe it will be between 200-600 in the end.

This is an extremely exaggerated price.

You know, in the high-end hotel industry, there is no such thing as small profits but quick turnover.

Because this industry has certain particularities, many of its hard expenditures cannot be changed.

For example, all kinds of consumables in the room, such as shower gel, bedding, pajamas, towels and so on.

These are all fixed costs, and the products used in five-star hotels are basically well-known brand products. The higher the level of the hotel, the higher the cost in this regard.

For another example, a five-star hotel with 400 guest rooms must have a management team of at least 450-600 people.

Including cleaning, chefs, technicians, waiters, security guards and other staff.

Although the salaries of practitioners in the hotel industry are relatively low, the expenses required for such a large-scale personnel team are not a small amount.

There is also the well-known construction cost, the amount required for land acquisition and construction of a five-star hotel, the general total investment starts at 1 billion.

Another statistic.

The average payback time for domestic five-star hotels is 25 years.

In other words, it will take 25 years to recover the series of capital investments invested in the construction of a hotel.

Of course, this is just an average data, and there must be miracles of return on investment for outstanding hotels.

But this data has fully demonstrated that the high-end hotel industry has never been a project that can see returns in the short term.

It is more inclined to invest in real estate.

It is conceivable from this that if the price is discounted by 50% and the profit margin is compressed, the return cycle will be greatly extended!

Even if the hotel is full every day, there is no profit at all!

Because as the number of customers increases, the demand for consumables will also increase greatly, and the cost will naturally continue to rise at that time, and there will be no profit at all!

To put it in a simple, straightforward and easy-to-understand way, if high-end hotels can make money by cutting prices, someone would have already done so! Why wait until this time?

Moreover, in recent years, due to various reasons such as oversupply and demand, life in the high-end hotel industry has not been easy.

More than half of the high-end hotels are in a state of loss,

A large part of the reason why the Xie Group sold so many hotels back then was because of this. Otherwise, why would it be called a low-quality asset?

It is because of perennial losses!

Those few hotels that really made money, the Xie Group did not sell them in their pockets!

Okay, I know about this, you go out. Retracting his thoughts, Sun Binhong waved his hand.

Okay. The assistant nodded, turned and left the office.

What is the origin of this Shiwang Group? A company that I have never heard of before, seems to have appeared out of nowhere, and it seems to be quite powerful. After muttering, Sun Binhong decided to ask Xie Jianlin.

What is the intention of the other party's move?

Is it for marketing and fame?

what is this else?

Shouldn't it be the norm? !

There are too many questions in Sun Binhong's mind at this moment!

Afterwards, Sun Binhong took out his mobile phone and directly dialed Xie Jianlin's number.

Xie Group Headquarters.

Xie Jianlin was resting in the office.

Whoever imagined, phone calls one after another!

In a few minutes, four or five calls were connected!

Why do these guys in the hotel industry come here all of a sudden to inquire about Shiwang Group? Xie Jianlin was a little confused.

I just sold three assets, although there is a Qianda Hotel among them, but has it attracted so much attention?

To put it bluntly, I have packaged and sold so many hotels before, but I have never caused such a big response!

It's just one house for sale now, why did it change like this?

These people are really strange!

After a brief pause, Xie Jianlin realized that things might not be simple.

At first, he thought that others were concerned about the sale, so he wanted to know the background of Shiwang Group. After all, it will be in the same industry in the future, so there is nothing wrong with understanding it.

But after several phone calls, Xie Jianlin felt something was wrong.

Something must have happened!

You must know that there are many capital giants in the hotel field who called him just now.

This kind of person made a special trip to inquire about the details of the Shiwang Group, which in itself reveals an unusual taste.

I should have asked just now. Xie Jianlin muttered belatedly.

Before answering the phone, others congratulated him on the phone, and casually mentioned to him how the Shiwang Group is doing.

At that time, Xie Jianlin really didn't think much, and introduced a few words casually.

'Looks like it's time to ask, I'm afraid something happened to the Shiwang Group! ’ Xie Jianlin thought to himself.

Just as he was about to call Xie Qing, at this moment.

The phone rings again!

Old Sun? Xie Jianlin glanced at the caller ID: This guy is calling too?!

Looks like something really happened!

Now Xie Jianlin was determined in his heart.

After pressing the answer button, without waiting for the other party to speak, Xie Jianlin asked directly: What's the matter, old grandson? Has something happened to the Shiwang Group?

Hehe, thank you, don't pretend to be confused. Sun Binhong laughed.

It sounds like the relationship between the two seems to be pretty good.

It's normal, after all, it's a business worth tens of billions.

'It seems that there is something wrong! ’ A short sentence made Xie Jianlin understand immediately.

I didn't pretend to be confused. After a pause, Xie Jianlin curled his lips and said, Just before you called, I connected four or five calls, and they were all about Shiwang Group! You wouldn't be the same, would you?

Oh? From this point of view, this incident has caused a lot of trouble. Sun Binhong immediately understood, and after thinking about it, the practice of Shiwang Hotel is indeed beyond people's cognition, and he must not be the only one who is puzzled.

What's the matter? Tell me quickly. Hearing this, Xie Jianlin asked quickly.

Don't you know? Sun Binhong was a little surprised at first, and then informed Xie Jianlin of the news announced by Shiwang Hotel.

What? After listening to Sun Binhong's narration, Xie Jianlin couldn't help exclaiming: 50% off? Is it true?!

Xie Jianlin used to be a major high-end hotel operator in China, and he is very familiar with the hotel industry.

In his opinion, the instant kill, five free one, these are within the acceptable range.

It's not that many hotels haven't done some flash sales, at most, the price of Shiwang Group is cheaper.

And for five stays, one get one free, there are similar membership points for redemption.

This cost is actually nothing.

The only thing he can't accept is this 50% discount!

This is incredible!

Of course it's true. Now, Sun Binhong didn't doubt that Xie Jianlin was pretending not to know, and the other party's reaction was quite real.

After a pause, Sun Binhong continued: Old Xie, what is the origin of this Shiwang Group? Does it not understand the rules of the hotel industry? How can they run a hotel like this? Isn't this nonsense!

If they go on like this, how can a five-star hotel survive? Who wants to do it at a loss?

. Xie Jianlin, who came back to his senses, fell silent for the first time.

If it was the past, when he heard such news, his immediate reaction would be disbelief, and he would laugh on the spot.

What are you kidding me about?

But for now, put it on Shiwang Group.

This thing is absolutely true!

no doubt!

No need for Sun Binhong to say anything more, Xie Jianlin believed it 100%!

Just because the other party is Shiwang Group!

Due to the investment, especially the three valuable assets to be invested in the past, Xie Jianlin has increased his understanding of Shiwang Group these days. For this reason, he has read the information of Shiwang Group several times .

Although he can't say that he has memorized the astonishing measures of the Shiwang Group's operations, he has also done it by heart!

Such a company offers a 50% discount on hotels

It's so normal!

This is totally their style!

only

Why do you want to do this?

Those physical catering stores lowered their prices, at most they only suppressed the original high net profit, and there will still be a small profit in the end.

But a 50% discount in a five-star hotel is something that will definitely lose money!

There is no room for manipulation!

What are you drawing?

Xie Jianlin couldn't understand the intention of Shiwang Group's move at all!

What's the matter, old Xie? Why didn't you talk? Sun Binhong on the other end of the phone asked in confusion.

It's okay, it's just a bit of a surprise. Xie Jianlin responded.

What's the situation with this Shiwang Group? Thank you, tell me in detail? Sun Binhong asked.

It's a company that has just been established for less than three months. I don't know the specific situation very well. Xie Jianlin replied.

What? It has been established for less than three months? Sun Binhong said with a look of surprise:

In such a short period of time, you can buy all the assets of your Xie Group in Sansha City?

It seems that the other party has a lot of background behind it.

It should be, there is a mysterious capital behind it. Xie Jianlin did not hide this point, in other words:

However, I know what you are worried about. Is it just that you are afraid that this momentum will be brought up by the other party? Are you afraid that the price system in the high-end hotel industry that has been established with great difficulty and is generally accepted and used by the public will be broken?

I think your worries are completely unnecessary.

The other party is just a hotel, and no matter how noisy it is, it won't be able to make big waves.

When can the hotel industry be affected by a hotel? What a joke!

As for whether other hotels will follow suit, this is even more nonsense. As long as you are in the hotel industry and know how to do it, you can't do it. This is a self-defeating move.

The hospitality industry won't change a bit without hotel advancements!

I also have similar thoughts. Sun Binhong nodded with a smile, That's why I came to ask you about the situation of Shiwang Group.

Oh, are you worried about the other party's expansion? Opening more five-star hotels? This will affect the industry? Xie Jianlin immediately understood the other party's intentions and asked.

That's right. Sun Binhong admitted: After all, the other party bought the assets of your Xie Group with a lot of money.

To be able to make such a large transaction, its strength must be extraordinary.

If the other party continues to acquire hotels and operate them in this way, the impact on the hotel industry will be enormous.

Hehe, just put your mind at ease. Hearing this, Xie Jianlin said with a smile:

The main business of Shiwang Group is not hotels.

What they mainly do is brick-and-mortar chain stores.

I've calmed down now, and after thinking about it carefully, I now roughly understand the real intention of Shiwang Group's move.

They probably want to use this hotel to gain more attention in this eye-catching way, and then convert these traffic to their chain brands.

So even if they pay some price for this, they can accept it.

It should be what I guessed. Don't worry, you don't have to worry at all.

Use this kind of self-defeating move to gain attention? Sun Binhong raised his eyebrows, a little in disbelief.

Otherwise? How do you explain their behavior this time? Xie Jianlin curled his lips and said, Could it be that you thought they were thinking about changing the hotel industry?

Stop making trouble. Let's not talk about whether the Shiwang Group has the strength to acquire more big hotels. If a hotel loses money like this, it will be too much.

If the quantity is too large, who can afford the 50% discount?

So, this situation is already obvious. The other party is just trying to gain attention and attract attention.

En. Hearing this, Sun Binhong nodded.

He thought what Xie Jianlin said was very reasonable.

In my opinion, you might as well arrange public relations as soon as possible to suppress the public opinion on the Internet and suppress the heat of this matter. Don't let everyone know about it. That will have some impact. Xie Jianlin After a reminder, he said:

Okay, let's do this first. I'm still busy here. I'll talk about it later when I have time.

Obviously, Xie Jianlin didn't want to say more, and was anxious to find Xie Qing to confirm.

Okay. Sun Binhong replied.

hang up the phone.

Xie Jianlin immediately dialed Xie Qing's number.

Hey, Dad, you know? A cheerful laugh came from the other end of the phone.

Hmm! Xie Jianlin said in a deep voice, What's going on? How could Shiwang Group operate the hotel like this? What exactly do they want?

The specific intention. It seems to be to create momentum! Xie Qing replied.

Building momentum? Xie Jianlin pursed his lips, which was close to his guess just now.

Is it really to use the hotel to gain more attention?

It's just this way, the cost is not low!

Father, actually. Xie Qing paused and said meaningfully: This is just the beginning!