ABSTRACT
With increasing expansion of the middle class and continued economic growth of China, the hospitality industry has been gradually recognized as a center for companies to reshape the investment landscape and secure longterm competitive advantages. As a result, some Chinese companies have started to aggressively acquire both hotel management companies and properties, trying to accomplish vertical integration of businesses in travel and
tourism. Some have focused on acquiring well-established brands and managerial expertise to extend and enhance their domestic lodging businesses, while others have tried to diversify into the hotel businesses by acquiring existing hotel companies to reduce risks associated with developing new products or services and achieve greater market power. In contrast, international hotel companies have continued to increase their presence across China by focusing on gaining market share through strategic alliance, franchise, management contracts, joint ventures with local partner, and other light-asset strategies. Therefore, this chapter is designed to provide a brief description of Chinese hotel mergers and acquisitions (M&As) in its three development stages and offer several insights and reflections relevant to the industry, academia, and government agencies.
