A qualitative study of budget hotels' mode of development in China

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A qualitative study of budget hotels' mode of development in China

 

Author: Huang, Shuang
Title: A qualitative study of budget hotels' mode of development in China
Degree: M.Sc.
Year: 2007
Subject: Hong Kong Polytechnic University -- Dissertations.
Hotels -- China.
Hotel management -- China.
Hospitality industry -- China.
Department: School of Hotel and Tourism Management
Pages: viii, 81 leaves : ill. (some col.) ; 30 cm.
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b2166823
URI: http://theses.lib.polyu.edu.hk/handle/200/2806
Abstract: Budget hotel is a relatively new concept in China. After a slow start, China's budget hotel industry has started to move forward at a high speed. Budget hotel properties are critical to the long-term success and sustainable development of the tourism industry in China. Most of the budget hotel enterprises in China are renting properties from landlords in order to save cost and shorten the construction period. However, at the same time, these budget hotel enterprises are also facing risks such as adjustment of government policies and rising rents imposed by property owners in seven to eight years when the leasing agreements expire. The purpose of this study is to explore why budget hotels choose leasing as a mode to expand their budget hotel business in China. Further, an analysis of the difference between leasing and new construction as mode of development is also conducted in terms of cost, speed of expansion, and government policies related to such modes of expansion. Both primary data and secondary data were collected. The interviewees from four budget hotel enterprises in China that represent the industry segment in terms of characteristics accepted the face-to-face interviews. The author's analysis and findings provides budget hotels within China with information on what factors to consider when choosing between leasing and new construction as modes for development.

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