Budget hotels are also called limited-service hotels. Their biggest feature is cheap room prices and their service model is "b&b" (accommodation + breakfast). It first appeared in the United States in the 1950s, and is now a fairly mature form of hotel in European and American countries.
The initial development of my country's economy hotels began in 1996, when "Jinjiang Inn", a subsidiary of Shanghai Jinjiang Group, was launched as China's first economy hotel brand. After nearly 20 years of development, a large number of fast hotel brands have been born, including Jinjiang Inn, Home Inns, 7 Days Inn, Thank Inn Chain Hotel, Hanting Hotel and so on.
Location and environment
●Budget hotels are not cheap hotels. Less investment and low operating costs are one of the characteristics of budget hotels, but they are not the essence or the absolute purpose. The essence of an economy hotel is small burden and quick return. These two factors give the general scale and business positioning of an economy hotel a relatively certain range.
●Budget hotels are characterized by spending less and making money quickly, but they often can only survive in cities or regions with developed economies, fast population mobility, high density, convenient transportation, and mature municipal facilities. It is difficult for economic hotels in economically backward areas to be born in the true sense.
●Economy hotels mainly operate guest rooms, with few or no supporting facilities such as catering, recreation, and conferences. Therefore, there should be facilities within a 300m radius around the hotel that meet the comprehensive needs of guests and are within walking distance. Restaurants, bars, shops, post offices, entertainment, convenience stores and other facilities, as well as transportation stations should also be nearby.
●When selecting a location for a budget hotel, special attention should be paid to the existing local municipal conditions and communication conditions.
Investment and Evaluation
●There must be a reasonable balance between investment amount and investment objectives. When selecting a site, it is necessary to evaluate the customer source structure and its reliability and durability.
●The determination of the investment amount is based on an accurate understanding of construction costs and operating costs, as well as an objective calculation of the feasibility and cycle of investment return.
●The more rooms there are, the lower the unit cost.
●Pragmatic choice of equipment.
Scale and Function
●Budget hotels can be large or small, but a setting with 16-20 rooms on each floor and no more than 10 floors in total is ideal. The appropriate total building area should be limited to 6000-10000m2. Of course, it can be smaller.
●A budget hotel can also be built in a large commercial building group, so that other functional areas of this group of buildings (such as restaurants, bars, theaters, shops, etc.) can naturally provide supporting facilities and services for the hotel. .
●A certain area on the first floor of the hotel can also be used for investment and rental, such as arranging fast food restaurants, laundries, travel agencies, etc., which not only supplements the functions, but also facilitates guests.
●"B&B" (Bed and Breakfast), the guest rooms are the most important function of a budget hotel, accounting for 70-80% of the total hotel building area; followed by a front hall (lobby), a restaurant ( (or cafeteria), sometimes there may be a bakery, a small merchandise kiosk, a small bar, etc. Budget hotels do not want guests to stay in the hotel public area for a long time, and the lobby is exquisite and practical. The hotel's operations, scheduling, monitoring, and financial functions are all located in the front desk area.
●Safety, hygiene and convenience are the basic standards.
●Support and guarantee of social service supporting system.
●Employee management model and application.