A Case Study On The Financial Performance Of BTG Hotels M&A Homeinns Hotel

With the rapid development of China's economy,the competition between different industries has become increasingly fierce.Major companies are looking for opportunities that are suitable for their long-term development.Among the many choices faced by enterprises,The Merger and Acquisition has received strong attention from major companies and has become its preferred method of expanding its scale of operations and improving its structure in order to achieve diversified development.Since 2012,due to China's hotel industry is in good condition in the early stage,many hotel companies have expanded rapidly.therefore,the overall hotel industry market has experienced the oversupply,resulting in a decline in overall industry a slowdown in development.The Merger and Acquisition events can be found everywhere,such as Jinjiang merged Platinum,and Marriott International merged Starwood.As the hotel market matures,the competition in the hotel industries has been more and more fierce,and each hotels are developing towards branding and grouping,entering a new era of scale and capitalization operations.This article selects the case of BTG Hotels merged Homeinns Hotel as an example for studying.Firstly,introducing the basic situation and development status,from the perspectives of macro and micro to analyzes the motivation of the BTG hotel to merge the homeinns hotel.Then by using financial indicators,non-financial indicators and EVA indicators to compare and analyze the business performance and development of the before and after stages of the BTG Hotel from 2013 to 2018.Based on the analysis of financial indicators,firstly through subitem financial analysis,it is found that in terms of profitability,operational capability and solvency,the various indicators of the company have been greatly improved.For the development capability,the performance of Merger and Acquisition in the current year is more obvious.Secondly,through comprehensive financial analysis,Du Pont analysis system was used to review the historical data of the first half of the hotel's financial statements from 2013 to 2018.It was found that the net profit return rate of the BTG hotel reached the highest in 2018.Based on the analysis of non-financial indicators,the number of hotels has expanded year by year and the market share has increased.Based on the analysis of EVA indicators,it is found that the Merger and Acquisition behavior is reasonable and successful.Finally,according to analyze this merger case,optimize the payment method of the Merger and Acquisition,improve the profitability and working capital efficiency of BTG Hotels,seek the long-term development opportunities of BTG Hotels,and get corresponding enlightenment.