Strategy Research Of Acquiring Lijing Hotel Based On Hunan Huatian Great Hotel Co., Ltd.

Asset acquisition is a commonly used development tools by the world’s leadinghotel management group in the process of development and growth. Especially in theearly stage of development, through acquisition to have more self-hotels rapidly, isthe only way which must be passed to most international hotel management to achievegradual growth.when they need to training more hotel managers, improving the levelof hotel management and enhance the reputation. Hunan HuaTian Great Hotel Co.,Ltd.(HuaTian Hotel) is a hotel management group which listed on the ShenzhenStock Exchange in1997. Since2006, HuaTian Hotel start to explore and practice theway through asset acquisition to achieve the expansion of scale and brand enhanceeffective, but the implementation of the strategy is still in the early stage.The purpose of this study is to offer strategic recommendation to HuaTian Hotelfor his asset acquisition, and further enhance the operational, economy and riskcontrol on the process of project implementation, through the theoretical and practicalanalysis and research.On the beginning of the article, it analyzed the motivation and environment ofthe M&A strategy of HuaTian Hotel.The intensive competition and the brand reputation should be improved is theunderlying reasons for HuaTian Hotel selecting asset acquisition. The continueddevelopment of our economy, further opening of the capital market and the boom ofreal estate development, provides the external conditions for Huatian Hotel makingacquisition of assets. Then, the article analyzed and studied to HuaTian hotel’s assetacquisition strategy through a potential acquisition target as an example.For the analysis of specific case, the paper firstly introduced the potentialacquisition targets, and analyzed the location tourism market of hotel, estimated theinvestment after the merger carried out.And then, we made analysis on the implementation of the asset acquisition of theasset valuation, acquisition path selection, acquisition payment, acquisition financingstrategy one by one.On this basis, we put forward two sets of takeover proposal, and made thecomparison between the two proposals to explain how to make decision.Finally, to safeguard the merger and acquisition project and control the risk, the article provide the advise on platform building for the investment, preparatory work,project investigate process and content, merger agreements, arrangements, trainingand introducing qualified personnel, the effectiveness of coordination and otheraspects of a scientific and necessary safeguards.By combination of theory and practical the article made recommendations with astrong practical value and theoretical reference value.