Mountain chalet JV gets 51% investment from BTG Hotels
BTG Hotels’ invested RMB5.1 million investment and Shanli Hanshe Tourism Investment contributes RMB4.9 millionto BTG Hanshe Hotel Management JV.
BTG Hotels is to invest RMB5.1 million (US$815,000) in its mountain chalet joint venture BTG Hanshe Hotel Management, which is poised to open 10 hotels in 2015.
BTG Hotels’ investment in the joint venture gives it 51% equity, while the other investor Shanli Hanshe Tourism Investment contributes RMB4.9 million for 49% equity of BTG Hanshe Hotel Management giving it registered capital of RMB10 million (US$1.60 million).
Nine of the 10 mountain chalets to open in 2015 under its Shanli Hanshe and Shanli Yiju brands are in Beijing and one is in Suzhou, and three of them – in Beijing’s Miyun Valley and Miyun Huangyakou and Suzhou’s Wujianglili –were operational since mid February sites. Ten more hotels are planned for each year in 2016 and 2017.
BTG Hotels said BTG Hanshe will adopt a fixed fee model charging RMB1,000 (approx: US$160) monthly management fee for each chalet. A total of 202 chalets will be operational in 2015 and the number will double year on year 2016 and 2017 according its business plan.
BTG Hanshe expects a loss in 2015 but anticipates management fee income of RMB1.261 million (approx: US$201424), RMB3.685 million (approx: US$588,620) and RMB6.109 million (approx: US$975,816) for 2015-2017 respectively, if its development schedule goes according to plan.(Translation by David)