Business Intelligence on Retailing, Franchising, and Consumerism in China

Super 8 To Open First Self-Run Hotel In Beijing

Super 8, one of the largest budget hotel brands from the United States, will break from its global franchising format and set up its first directly-run hotel in China.

According to the Management Measures on Business Franchises issued by China's Ministry of Commerce, a franchiser shall have at least two directly-run stores that have been operating for at least one year, or two directly-run outlets run by its subsidiaries in China. Local media report this is why Super 8 has decided to set up its first directly-run hotel in China.

A representative from Super 8 China says that in order to prevent competition among its franchised hotels, Super 8 may choose to locate its first directly-run hotel on the outskirts of Beijing. Super 8 China plans to soon expand into more second and third-tier cities and also introduce a membership loyalty program called "Trip Rewards" to attract more guests.

Super 8 also says it has exceeded its 2006 development projection of 100 properties either open or signed by year end by 10%. The company says this is the second consecutive year it has exceeded its development goals.

Super 8 has 110 properties either open or signed in 58 cities across China, of which 32 are open and operating.

Super 8 Hotels (China), through its parent company Tian Rui Hotel Investment Corporation, is licensed by Wyndham Worldwide Corporation to develop the Super 8 brand in China. The Super 8 brand, one of 10 lodging brands franchised by Wyndham Worldwide, entered China in April 2004. The Super 8 brand is operated in China under license agreement with Tian Rui Hotel Investment Corporation, master licensee for the Super 8 brand for the Territory of China, including Hong Kong SAR and Macao SAR.

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