Compared with state-owned hotels of government reception, the hotels owned by giant state-owned enterprises have already competed with other hotels in the market. Their transformation focuses more on competition and cooperation in the operational course.
The Transformation Tactics of Hotels Owned by Central Enterprises
From a historical perspective, the giant state-owned enterprises in possession of a series of these hotels are basically affiliated to the Central Government or the Ministries and Commissions of the State Council. That is to say they are under the leadership of “horizontal system” in the planned economic system. Their main characteristics include that they have a huge stock of assets, a large number of enterprises and a national market layout has been formed; they are suffering a small business proportion against the whole industry, low professional level and low efficiency in operation. At present, with deepening and widening of the market course oriented towards competition, the property right and the dominion over these hotels have already started to become pluralism and there may be two directions in the future development. On the one hand, in the precondition of independent property right and relying on industrial identification and on non-market relations in terms of administration, business and personnel, the hotels will ally strategically, and will decide whether to take measures in the transactions of property right. On the other hand, they can negotiate with hotel groups or hotel management companies both home and abroad, and reform in transaction of property right and management.
Transaction in Property and Management
The principles in this transformational strategy are “integrating regional hotels and managing by classifications; cultivating brand image and increasing the asset value and selling by classifications and regrouping the enterprises”. Take the state-owned hotel assets owned by four major state-owned commercial banks as an example. At the present stage, they are increasing the state-owned assets through management; then with the maturation of capital market, trading objects will be introduced to make a multiple property right with negotiable securities. After the state-owned inventors retreat from hotel management, the capital gained through trading will eliminate the bad assets resulted from bad historical credit loans travel guilin things to do. When the platform of negotiable securities has been built up, the investment organizations of state-owned banks can decide whether to hold partly or to drop out completely. During this process, decision makers should intensify the confidence and capacity of the operators in long term through a clear development strategy, and they should also avoid low efficient operation as “rubbish retrieving”.