Research On China Budget Hotels' Capital Operation And Risk Control

In recent years, the rapid development of tourism market has created new development opportunities for the hotel industry. The budget hotel industry which provides cheap and good quality products to customers has become a hot spot for investment and the main source of profits. Budget hotel's related analysis has become a hot field of current tourism management research.With the 2008 Beijing Olympic Games and the 2010 Shanghai World Expo approaching, China's budget hotel brands expand with the rate of 200% -300%, and there are many new brands emerging. In order to win the fierce competition, the capital operation of budget hotels has been continuously enriched. With the influx of capital from all, budget hotels'investment costs is rising, which makes manage risk increasing continuously.In order to help the Chinese budget-hotel operators and potential investors get a clear understanding of the market, avoid risks, and achieve sustainable economic development, the paper analyze the status quo of China's budget hotels. In contrast with foreign budget hotels'development, the paper pointed out that China's budget hotels'development condition and related investment risk. Based on theoretical analysis and case analysis, the paper pointed out the necessary of capital operation in this industry. Through capital operation, Chinese budget-hotel operators can effectively control investment risks. Finally, this paper made a expansion on capital's meanings in China budget hotels'further development.