chapter  7
17 Pages

Case study I: Home Inn

Home Inn was founded in 2002 as a joint venture by Ctrip, a leading China-based online travel company, and Beijing Capital Travel International Hotel Group, China’s largest hotel group by assets. With a vision of delivering a new type of comfortable lodging experience throughout China, Home Inn achieved impressive growth rapidly, as evidenced by its initial public offering (IPO) on the Nasdaq in 2006 and becoming the fi rst ‘China hotel service share’ in the overseas stock exchange market, which stands out as one of the notable landmarks in the history of China’s hotel development. The past decade has witnessed Home Inn’s signifi cant growth and expansion. Its hotel chain units in operation grew rapidly from ten hotels in four cities as of the end of 2003 to a total of 1,682 hotels spanning across 243 cities under three brands (i.e. Home Inn, Motel 168, and Yitel) as of 30 September 2012. With 10.6 million individual frequent guests and 104,000 corporate accounts, Home Inn has become an undisputed market leader in China’s economy hotel sector based on the number of hotels and hotel rooms as well as its geographical coverage as shown in Figure 7.1 (Home Inn, 2013 ). Since its establishment, Home Inn has received recognition and won various honours including 2012 CCTV Chinese Brand of the Year, International Franchisor Award, China’s Most Popular Brand in Green Economy Hotels, and Golden Pillow Award for the best brand in economy hotels in China. With professional and courteous service, comfortable rooms, convenient locations, and moderate prices that primarily accommodate value-conscious individual business and leisure travellers, Home Inn, as a national brand, has been showing the world the Chinese service philosophy of ‘home-like’ culture, aiming to be the leader within the Chinese hotel industry providing lodging services to the general public.