China’s open-door policy has resulted in the country becoming an extremely popular tourist destination. Throughout China there are now increasing numbers of independent tourists as well as rising numbers of tour groups. As a result, many hoteliers in the West are seeking opportunities to extend business in the China market.
Scenario:
The board of directors of Stern Hotels, a UK-based chain is considering the possibility of forming a joint venture with a locally-owned hotel chain China.
Your understanding is that any joint venture would begin with a single hotel in Beijing, with possible further expansion to hotels owned by the partner in other key cities at a later date.
Your director, the CEO of Stern hotels, John Sutherland, has given you the following brief:
After visiting Beijing with a translator and setting up a number of meetings, you have narrowed the field down to two possible ‘candidates’:
• Long Wu Jing Pin Hotel (‘LWJP’)
• Tang Ren Jie Hotel (‘TRJ’)
Task:
Use your own notes (below) to create an easy-to-read/comprehend task report for your director, in order to determine the next steps forward with the joint venture.