BTG Hotels invests US$3.5 million for country resort and ecommerce subsidiaries
BTG Hotels is investing RMB22.5 million in the joint venture BTG Lohas Cultural Tourism and its wholly-owned subsidiary BTG Ecommerce.
BTG Hotels is investing RMB17.5 million (approx: US$2.74 million) in the joint venture BTG Lohas Cultural Tourism Investment Company, equivalent to 35% of the latter’s registered capital of RMB50 million (approx: US$7.85 million). Meanwhile BTG hotels will also set up another subsidiary, bringing the total cost of both investments to RMB22.5 million (approx: US$3.53 million).
BTG Hotels said BTG Lohas Cultural Tourism Investment Company will develop experiential leisure travel of traditional culture through the conservation of traditional villages and construction of new farm-based resort facilities after it has a thorough understanding of the cultural village resources in China’s countryside.
The company will use Beijing, Tianjin and Hebei area as a hub and extend outward nation-wide to implement in phases the development of seven directly-operated cultural village resorts within the period of the State’s 13th Five-year Plan.
Meanwhile, BTG Hotels will also invest RMB5 million (approx: US$785,650) in cash to set up the wholly-owned BTG Ecommerce Information Technologies Company.
BTG Ecommerce will consolidate various functions for BTG’s member hotels, including setting up a flagship store on Alibaba’s Tmall for the BTG hotels and take charge of marketing and booking online for the hotels. It will coordinate with partners to help member hotels set up PMS system as well as undertake related training, upgrading and maintenance services. BTG Ecommerce will also centralize the management of BTG hotels’ membership program, calculating loyalty points as well collecting and managing membership fees.
Additionally, BTG Ecommerce and partners will launch a targeted members channel for BTG Hotels Rewards loyalty membership program. BTG Ecommerce will also administer the BTG Hotels official booking site and set up an online marketing platform with real-time booking functions. Guests will be able to book hotel rooms and settle the bill online or offline via the central booking system.
BTG Hotels said BTG Ecommerce will leverage the BTG Hotels Rewards to increase booking traffic and save operating costs for the group. BTG Ecommerce will also operate the platform and take responsibility for the group’s entire online operations.(Translation by David)