[hotel]Enjoy Media Switches To Hotel Management Services
Posted:2007-5-18|Source:China Hospitality News|No. of Views:
Enjoy Media Holdings says it is terminating all its advertising services and has commenced a new business direction in hotel management services in China.
Enjoy Media says China's saturated advertising market has left little room for profits and has therefore decided to change its focus to a booming budget hotel industry in China where the demand for hotel rooms at economy rates is growing faster than supply.
Enjoy Media has established Square Inn Limited, a hotel management company, to expand and provide hotel management services to budget hotels in China. It has acquired a hotel property in Chengdu and has been in negotiations with several potential acquisitions in other provinces.
Enjoy Media expects to bring in between three to eight more hotels in 2007 for a projected revenue between US$800,000 and US$1.6 million, and net profit between US$270,000 and US$540,000. In addition to acquisitions, Enjoy Media expects strong growth for 2008 and 2009 as it will add management contracts, and explore lease and franchise options.
Budget hotel chains have emerged recently to target value-conscious business and leisure travelers in China. A study conducted by the National Development and Reform Commission showed the country had about 50 registered budget hotel chains with more than 600 outlets in 2005. In 2006, the number of outlets approached 1,000 with major budget hotel brands such as Home Inns, Motel 168 and Jinjiang Inn expanding at 74% average annual growth rate.
