Shanghai Jin Jiang International Hotels (Group) Company Limited: Company Strategy & Performance Analysis
Shanghai Jin Jiang International Hotel, headquartered at Pudong (Shanghai), was founded in the year 1995. The company operates star-rated hotels, budget hotels, and restaurants. It also undertakes franchising activities. Its key segments include service hotels, passenger transportation vehicles and logistics, full service hotels, and travel agency. The service hotels segment reported an increase in its revenue from US$167.0 million in 2015 to US$322.0 million in 2016, reflecting a growth of 93%. The service hotels accounted for 61% of the company’s total revenue. In terms of geography, China contributed to 79% of the company’s total revenue.
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Acquisitions to expand its hotels portfolio
Jin Jiang completed various acquisitions to expand its portfolio within the hotel business. The company had acquired an 80% stake in Vienna Hotels Group to add an additional 479 hotels and 60,000 rooms to its portfolio. In addition, the company’s significant partnership with Louvre Hotel Group and Plateno formed a combined portfolio of over 6,000 hotels and 640,000 guestrooms in 55 countries across all regions. This led the company to rank among the world’s top five hotel groups.
Expansion strategies to improve its market presence
Jin Jiang is looking to buy hotels in major European cities, including Paris to expand its luxury portfolio. The company is looking to address the growing demand in luxury segment to remain competitive in the market. The company announced its plans to expand its business operations with five new hotels by the end of 2017. This initiative will help the company to achieve its goal of building 2,000 Jinjiang Inn hotel rooms in the Philippines by 2020.
Aims to expand its managed and franchise portfolio
The company is aiming at improving its hotel base particularly in managed and franchise segment. In addition, the company has been pursuing inorganic growth strategies such as acquisitions to expand its footprint in the market. Out of the 5,868 select service hotels in operation, 1,093 were managed by Jin Jiang accounting for approximately 19% of its total select service hotels. It operates 4,775 franchised hotels, which account for approximately 81% of its select service hotels. The company looks to continuously generate significant revenues from the managed and franchise segment.
Company Snapshot - details key indicators and rankings of Shanghai Jin Jiang Hotel Group in terms of revenue, net income and operating income, ADR, RevPAR and occupancy rates in the company’s key markets.
Company SWOT Analysis - outlines Shanghai Jin Jiang Hotel Group’s Strengths and Weaknesses, and weigh up Opportunities and Threats facing the company.
Growth Strategies - understand Shanghai Jin Jiang Hotel Group’s corporate goals and strategic initiatives and evaluate their outcomes.
Company Performance and Competitive Landscape - analyse the company’s performance by business segments such as operating revenue, full and select service hotels, food & restaurant, passenger transportation vehicles and logistics and travel agency besides peer comparison on parameters such as revenue, number of hotel properties and rooms.
Key Developments - showcase Shanghai Jin Jiang Hotel Group’s significant recent corporate events, changes or initiatives.
ICT Spending Prediction - Understand how the company allocates its ICT budget across the core areas of enterprise ICT spend, namely hardware, software, IT services, communications and consulting.
Reasons to buy
How does Shanghai Jin Jiang Hotel Group ranks among peers in terms of the number of rooms and properties globally?
What are Shanghai Jin Jiang Hotel Group’s main growth strategies and how successful has the company been at implementing them?
How has the company performed since 2014 in terms of its segments operating revenue, full service hotels, select service hotels, food & restaurant, passengers’ transportation vehicles and logistics and travel agency?
How has Shanghai Jin Jiang Hotel Group performed in comparison to competitors such as Hilton Worldwide, MGM Resorts International, Accor Hotels and Wyndham Hotel Group?
What are Shanghai Jin Jiang Hotel Group’s strengths and weaknesses and what opportunities and threats does it face?