Hanting Inns & Hotels has announced the establishment of a company to pave the way for its further budget hotel development in North China.
Zhang Tuo, the chief operation officer of Hanting, stated that by the end of 2008, Hanting had completed its business plans for the major business and travel cities in China as well as the Yangtze River Delta Region, Pearl River Delta Region, and the Bohai Bay hinterland, and has opened a total of 187 hotels across the country. Zhang said that Hanting decided to set up the new company mainly because of increasing competition and the shift of competitive focus among budget hotels. Zhang disclosed that Hanting might also launch a new brand following the establishment of the new company.
Hanting currently owns three brands: Hanting Inn, Hanting Express and Hanting Hotel. The company would not comment on when the new brand will be launched or the name of the brand. Wang Haijun, vice president of Hanting, said that Hanting had achieved remarkable growth in 2008 opening 16 hotels in Beijing , making the total number of hotels belonging to the company in the city 21. Wang said that Hanting would continue to grow rapidly in 2009 by opening 100 new hotels — many of which will be located in North China.
Hanting completed a second round of financing of USD55 million in 2008. With its first round of financing of USD85 million, the company has had a total financing of USD140 million, an amount which is deemed to be enough to see the company through the current financial crisis.