Attracted by the burgeoning budget hotel business in Guangdong, Guangzhou Lingnan International Group has launched a budget hotel brand of its own.
Lingnan Group's new budget hotel brand is called Garden Inn. With its opening, the total number of budget hotels in Guangzhou has reached nine.
With a state-owned background, Garden Inn has been positioned as a high-class budget hotel brand. Its Yan Jingdong Outlet and Luoxi Outlet will be formally opened on June 28, 2006.
Zhao Li, director of the Marketing Department of Garden Inn, disclosed that during the soft launch period, the average occupancy of their hotels reached 80%.
The company expects that they will earn back their investment on the hotels in five years. They also have plans to open 100 chain hotels in the next three years, the investment on each of which will be about RMB5 million.