chapter  8
15 Pages

Case study II: 7 Days Inn

As illustrated in Figure 8.1 , 7 Days Inn has been developing and expanding at a fast speed. So far, its development can be summarised into two phases. The fi rst phase (March 2005-November 2009) saw 7 Days Inn’s early rapid growth from a base of only six hotels to nearly 400 hotels. By the end of 31 December 2007, 7 Days Inn was ranked No. 4 in the Chinese economy hotel market with the

number of its opened hotels reaching 121, which contrasts sharply with its ranking of No. 10 at the end of 2005. As a late mover in the economy hotel sector, 7 Days Inn has been playing ‘catch-up’ with its own unique business strategies. Since its establishment, 7 Days Inn has kept an annual growth rate of 400 per cent towards its listing on the New York Stock Exchange in 2009. The successful initial public offering secured 7 Days Inn adequate capital, marking a new starting point for its massive expansion. The second phase (December 2009 to the present) witnesses its ‘leap forward’ in development. In February 2012, 7 Days Inn built its nationwide network system with a total number of 1,000 member hotels. In a short period of about 7 years’ development, 7 Days Inn has become the second largest economy hotel chain company in China with over 1,345 member hotels.