BTG-Homeinns goes for franchise as combined net income drops
BTG Hotels, the new parent company of Homeinns, reported 66.73% decline in net income for the first half of 2016.
In releasing a progress report about BTG Hotels’ acquisition of Homeinns Hotel Group and the group’s results of the first half of 2016, BTG’ newly-appointed general manager Mr. David Sun pledged that the company would expand its portfolio of mid-ranged hotels from now on.
Of the 400 new hotels BTG Hotels plans to launch this year, 30% of them will be in the mid-range category. The company also wants to make all its budget hotels operated by franchise.
Mr. Sun, former CEO of Homeinns Hotel Group, was named by BTG’s board of directors as general manager on September 9.
Together with six newly appointed assistant general managers, they form a seven-member management team – three of the team previously worked for Homeinns and the other four were from BTG before the merger.
The net income of BTG Hotels after the merger dropped 66.73% YoY in the first half of 2016, according to the company’s interim financial results released on August 30.
Homeinns, a budget hotel chain previously listed on Nasdaq, completed its privatization and became a subsidiary of state-owned BTG Hotels on April 1, 2016.
After the merger, Beijing-based BTG Hotels boasts a total of 3,187 hotels and 367,000 hotel rooms, and became China’s second largest hotel group as of the end of June. （Translated by Jerry）