Retailing, Franchising, and Consumerism Business Intelligence in China

Super 8 China Accelerates Direct-Owned Property Expansion

Super 8 Hotels is accelerating its direct owned property development in China, starting with five directly owned properties to open in the next 60 days, and is offering cash rewards to the general public for introducing properties which are successfully acquired by Super 8.

Mitchell A. Presnick, Super 8 China chairman said, "Super 8 loves China, and we put people first. We want to help others receive benefits as we further develop our operations here. We have a large and talented development team, but China is a big country, and local people always have the best local knowledge. Like the Chinese saying goes; whatever mountain you go to, you sing the local song."

The company has spent one year building its property development and hotel management teams. Super 8’s direct-owned development strategies include acquisition of other economy hotel brands, cooperation with state owned enterprises, individual property acquisitions, and cash awards to anyone bringing a successfully-acquired property deal to the company. The company plans to develop 48 direct owned properties in China this year and 268 directly-owned properties by 2012. These targets are in addition to Super 8’s franchise development goals.

The company has set aside RMB10 million to pay rewards to the general public to help search for new sites for Super 8 hotels anywhere in the country. Super 8 will pay RMB248 per room that can be created on the site, with a reward maximum of RMB35,000 per property. A property must be successfully leased by Super 8 before the reward can be paid.

Super 8 entered the China market in 2004 and opened its first hotel in Beijing on June 8, 2004. As of February 28, 2008, the company had 67 properties open and operating in more than 40 cities across China.

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