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

This price will reduce the hotel's profit margin infinitely!

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

It has become the kind of business that is purely about 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 based on standards and services.

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

In this type of luxury hotel, the most common room prices are around 2,000, and the most expensive presidential suites cost tens of thousands.

Of course, the services, hardware facilities, etc. of this type of hotel are all top-notch. Not only does it have personal butler service, but its hardware equipment is also far ahead of other five-star hotels. They all use top-quality materials and selections. Design and decoration by the world's best designers.

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

Their locations are also generally in prime locations and are common in first-tier cities.

The second category can be called luxury. This type of hotel includes Marriott Hotel, JW Marriott Hotel, Westin Hotel, InterContinental Hotel, Hyatt Group's Grand Hyatt, Shangri-La, Kempinski, etc. .

The price of ordinary rooms in this type of hotel is generally between 1,000-2,000 yuan.

Compared with top luxury hotels, this type of luxury hotel is far behind.

In addition to the more formalized hotel decoration and material selection, there are two most obvious differences. The first is that you can no longer feel the one-on-one exquisite service from the personal butler, 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 rooms in luxury hotels are generally between 35-48 square meters.

The third category is the common standard five-star hotels.

This type of hotel generally adheres to the basic standards of a five-star hotel, with prices ranging from 300 to 1,200. The prices in this type of hotel are obviously more affordable.

It can be seen from this that not all five-star hotels are expensive. The main reason is that domestic officials do not recognize the titles of higher-star hotels such as six-star and seven-star hotels. Therefore, five-star hotels give people 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, with only a few luxury five-star hotels.

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

This means that the price itself is not high. If you give it a 50% discount in this case, you 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, various consumables in the room, shower gel, bedding, pajamas, towels, etc.

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

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

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

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

There are also well-known construction costs. The amount of money required to acquire land and build a five-star hotel. Generally, the total investment starts at 1 billion.

Let’s talk about another statistic.

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

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

Of course, this is just an average figure, 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 of an investment in real estate.

It can be imagined from this that if the price is discounted by 50% and the profit margin is compressed, the payback period will be greatly extended!

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

Because as the number of guests increases, the demand for consumables will also greatly increase, and the cost will naturally continue to rise by then, making it simply unprofitable!

To put it simply and easily understandable, if high-end hotels could make money by cutting prices, someone would have done it long ago! Why wait until this time?

And in recent years, due to various reasons such as oversupply and demand, the high-end hotel industry has been having a hard time.

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

The reason why the Xie Group packaged and sold so many hotels back then was largely due to this aspect. Otherwise, how could it be called inferior assets?

It’s because of losses all year round!

Those hotels that really make money, Xie's Group keeps them in its pocket and does not sell them!

"Okay, I understand this. You can go out." After withdrawing his thoughts, Sun Binhong waved his hand.

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

"What's the origin of this Shiwang Group? It's a company I've never heard of before. It seems to have appeared out of thin air. It seems quite powerful..." After muttering, Sun Binhong decided to ask Xie Jianlin.

What did the other party mean by this move?

Is it for marketing and fame?

then what?

It shouldn’t become the norm, right? !

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

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

...

Headquarters of Xie Group.

Xie Jianlin is taking a break in the office.

Who would have thought, the phone calls come one after another!

Within a few minutes, four or five phone calls were made!

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

I only sold three assets. Although there was a Qianda Hotel among them, did it attract so much attention?

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

Only one house is for sale now, why has it changed like this?

These people are really weird!

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

At first, he thought that others were interested in the sale, and wanted to know the background of Shiwang Group. After all, they would be in the same industry in the future, so there was nothing wrong with understanding it.

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

Something must have happened!

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

This kind of person made a special trip to inquire about the details of the Shiwang Group, which itself shows a hint of unusualness.

"I should have asked just now." Xie Jianlin muttered in hindsight.

When he answered the phone before, others were congratulating him on the phone. After exchanging pleasantries, they casually asked him how the Shiwang Group was doing.

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

‘It seems like we have to ask, maybe something happened to the Shiwang Group again! ’ Xie Jianlin thought secretly.

Just when he was about to call Xie Qing's number, this was the moment.

The phone rings again!

"Old Sun?" Xie Jianlin glanced at the caller ID: "This guy actually called too?!"

"It seems like something really happened!"

Now Xie Jianlin was determined in his heart.

After pressing the answer button, Xie Jianlin asked directly without waiting for the other party to speak: "What's wrong, Old Sun? Is something going on with the Shiwang Group?"

"Haha, Lao Xie, don't pretend to be confused because you understand." Sun Binhong said with a smile.

It sounds like the relationship between the two is quite good.

It's normal, after all, tens of billions of transactions have been made.

‘It seems like something is really going on! ’ In just one sentence, Xie Jianlin suddenly understood.

"I'm not pretending to be confused." After a pause, Xie Jianlin curled his lips and said: "Just before you called, I made four or five calls, all of them asking about the Shiwang Group! You can't do the same, right? "

"Oh? It seems that this incident has caused quite a stir." Sun Binhong immediately realized it. Then he thought about it, what the Shiwang Hotel did was indeed beyond people's knowledge, and he was definitely not the only one who was confused.

"What's going on? Tell me quickly." After hearing this, Xie Jianlin quickly asked.

"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 story, Xie Jianlin couldn't help but exclaimed: "50% off? Real or fake?!"

Xie Jianlin was once a major high-end hotel operator in China, and he is very familiar with the ins and outs of the hotel industry.

In his opinion, instant sales and five-for-one are all within acceptable limits.

It’s not like many hotels haven’t had some flash sales. At most, the price from Shiwang Group is cheaper.

There are also similar member points redemptions such as staying five and getting one free.

This cost is actually nothing.

The only thing he couldn't accept was the 50% discount!

This is incredible!

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

After a pause, Sun Binhong continued: "Lao Xie, what is the origin of this Shiwang Group? Do you not understand the rules of the hotel industry? How can anyone run a hotel like this? Isn't this nonsense!"

"If they continue like this, how can a five-star hotel survive? Who would be willing to do it if they are losing money and making money?"

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

If it were in the past, when he heard such news, his first reaction would definitely be disbelief, and he would laugh on the spot.

Are you kidding me?

But now, when it comes to the Shiwang Group...

This thing is absolutely true!

no doubt!

Sun Binhong didn't need to say anything more, Xie Jianlin believed it 100%!

Just because the other party is the Real King Group!

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

Although he can't say that he knows all about the amazing management measures of Shiwang Group, he is familiar with them!

Such a company offers a 50% discount on hotels...

It’s so normal!

This is totally their style!

only...

Why do we do this?

Those physical catering stores that lower their prices will at most only suppress the originally high net profits. In the end, there will still be small profits.

But offering a 50% discount on a five-star hotel is definitely a loss!

There is no room for maneuver!

What are you picturing?

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

"What's wrong, Lao Xie? Why don't you talk anymore?" Sun Binhong on the other end of the phone asked confused.

"It's okay, it's just a bit unexpected." Xie Jianlin responded.

"What's going on with this Shiwang Group? Lao Xie, can you tell me in detail?" Sun Binhong asked.

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

"What? It was established less than three months ago?" Sun Binhong said with a surprised look on his face:

"Can you acquire all the assets of your Xie Group in Sansha City in such a short period of time?"

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

"It should be that there is mysterious capital behind it." Xie Jianlin did not hide this. In other words:

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

"I think your worries are completely unnecessary."

"The other party is just a hotel. No matter how noisy it is, it won't cause much trouble."

"When has the hospitality industry been affected by one hotel? What a joke!"

"As for whether other hotels will follow the trend and imitate, this is even more nonsense. As long as you are in the hotel business and know the industry, it is impossible to do this. This is a move that ruins your own job."

"Without the advancement of hotels, the hotel industry will not change at all!"

"I have similar thoughts on these." Sun Binhong smiled and nodded: "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? Will it affect the industry?" Xie Jianlin immediately understood the other party's intention and asked.

"That's right." Sun Binhong admitted: "After all, the other party purchased the assets of your Xie Group in a big way."

"The ability to make such a large transaction must be extraordinary."

"If the other party continues to acquire hotels and operates them in this way, the impact on the hotel industry will be extremely large."

"Haha, just be more at ease." Hearing this, Xie Jianlin smiled and said:

"The main business of Shiwang Group is not hotels."

"They mainly do physical chain stores."

"I have calmed down now. 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 this traffic to their chain brand."

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

"That's probably what I guessed. Don't worry, you don't have to worry at all."

"Using this kind of move that costs you a thousand dollars to gain attention?" Sun Binhong raised his eyebrows and said, a little unbelieving.

"Otherwise? How to explain their behavior this time?" Xie Jianlin curled his lips and said, "Do you still think they are thinking about changing the hotel industry?"

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

"If the quantity is large, who can withstand the 50% off price?"

"So, in this situation, it is already obvious that the other party is just trying to attract attention and attract attention."

"Yeah." Hearing this, Sun Binhong nodded.

He thinks what Xie Jianlin said is quite 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 that for now. I'm still busy here. We'll talk in detail later when we have time."

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

"Okay." Sun Binhong responded.

hang up the phone.

Xie Jianlin immediately dialed Xie Qing's number.

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

"Well!" Xie Jianlin said in a deep voice: "What's going on? How could Shiwang Group run a hotel like this? What do they want to do?"

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

"Building momentum?" Xie Jianlin pursed his lips. This was close to what he had just guessed.

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

But this way, the cost is not low!

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

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