An inn every 3 days
Home Inns is not the only budget brand to remain optimistic.
Jin Jiang Inn Co Ltd, the budget hotel chain under Shanghai Jin Jiang International Hotels Development Co, China's largest hotel operator, said earlier it will maintain its growth pace over the coming few years.
The company, the country's second-largest economy hotel operator, plans to extend its network to 600 hotels by the end of 2010 from the current 300-plus, including those in the pipeline. That means it will add one hotel every three days.
Jin Jiang Inn is focusing on consolidating its strength.
In an initial effort, Jin Jiang Inn has started to offer even cheaper hotels where rooms can be booked at around 100 yuan a night, a 50-percent cut from the mainstream budget hotel price tag.
The company said last month that seven such hotels are under construction across the country in cities including Shanghai, Beijing, Ningbo, Wuhan and Nanchang, and three to four are scheduled to go into operation either at the end of this year or the beginning of next year.
"The current global financial turmoil seems to have little impact on Jin Jiang Inn's business," Xu Zurong, general manager of Jin Jiang Inn, told the Xinmin Evening News earlier. "On the contrary, shrinking corporate travel budgets due to the economic slowdown will help bring more customers to budget hotels like Jin Jiang Inn.
"Moreover, it could also be a good opportunity for us as we might be able to secure cheaper properties for future growth,"
Han Ting Inns & Hotels, another major industry player with a multi-brand development strategy, also confirmed an aggressive expansion plan recently.
Ji Qi, chief executive officer of Han Ting, told the Shanghai Business newspaper earlier this month that it will add 100 new hotels next year as scheduled.
The hotel group, which runs two brands, the budget Han Ting Inns and the upmarket Han Ting Hotels, will also tap an even lower-end sector, mainly targeting backpackers and students, company officials said earlier.
