Many Chinese hotel groups penetrated into overseas markets in the form of mergers, acquisitions and cooperation.t

Budget hotel faces operation difficulties under the impact of the increase of rent, human operating costs, maintenance investment, and the saturation of demand. According to the annual report of Home Inn and 7Days Inn, the development status of budget hotels is embarrassed. So from the beginning of 2012, most of hotel companies such as Plateno Hotels Group, Home Inns & Hotels and Huazhu hotels Group turned towards to High-end hotels and tried to invest abroad.

Recently, many hotel Groups launch mid-class hotel brands focus on business and fashion and upgrade their own original budget hotel brand. In fact, In the eyes of the hotel industry heavyweights, it is impossible for mid-class hotels to develop as budget hotels. The budget hotels are still the largest proportion in all kinds of hotels.

Apart from the “upgrade”, many hotel groups also penetrated into overseas markets in the form of mergers, acquisitions and cooperation. Recently, Jin Jiang International Hotels spent 1.49 billion dollars in acquiring French Louvre Hotels Group. Before that, Jinjiang, Plateno, New Century, GreenTree Inns and other hotel groups have started to penetrate into overseas markets and have obvious geographical emphasis. Jinjiang and New Century focus on expanding in European markets, but GreenTree Inns, Plateno and Home Inns focus on Southeast Asia market. GreenTree Inns began to enter the US market.

However, the overseas developments of these hotels are not very well. Zheng Nanyan, the president of Plateno Hotels Group, said that As a result of the property leasing difficulties and unfamiliar administrative approval process, the overseas development of Plateno is significantly slower than its domestic development.

Another interesting phenomenon is that international hotel brands still have a substantial expansion in the Chinese hotel market.

Many insiders believe that there is still much room for development of domestic hotel industry.(Translation by Ella)