Elephants turn around, it has never been so easy.
Huatian Hotel, which has been seeking asset-light operation, has once again reported the news of the transfer of assets at a discount.
According to the company's announcement recently, the company will be listed for the second time on the Hunan United Property Rights Exchange on October 22, and the reserve price of the listing will be adjusted to 637 million yuan according to the 10% reduction of the 100% equity appraisal price of Changchun Huatian Hotel Management Co., Ltd. This is because the latter's 100% stake failed to solicit interested transferees during the first listing period.
Bar Steward Finance noted that this is not the first time huatian hotel has encountered this situation. As early as 2019, when Huatian Hotel transferred 100% of the equity of Hubei Huatian, it also lowered the transfer amount.
Behind the "sale" of assets is the strategic transformation of Huatian Hotel after the change of the actual controller. After deducting non-net profit for 7 consecutive years, the company's original "hotel + tourism + real estate" model is gradually adjusting to the direction of asset-light operation. In the future, self-owned property hotels in non-first-tier and provincial capital cities may face the situation of sale.
The transformation will inevitably experience pains, where should this hotel Xiang army sail in the future?
1
sell! Even if it's a discount
The asset transferred by Huatian Hotel is Changchun Huatian Hotel. In August this year, Huatian Hotel listed for the first time to transfer 100% of the equity of Changchun Huatian corresponding to the appraisal price of about 708 million yuan. After this discount, it was 637 million yuan, a 10% reduction from the first time.
This hotel was formerly known as Changchun Kyoto Hotel. As early as 2009, Huatian Hotel spent 400 million yuan to acquire Changchun Huatian, which caused a sensation in the capital market at that time.
By the first half of 2021, Changchun Huatian's operating income was 21.9445 million yuan, operating profit was -8.2874 million yuan, and assets totaled 847 million yuan.
Why is Huatian Hotel sold at a discount?
According to Huatian Hotel's 2021-2023 three-year action plan, the company should accelerate the disposal and revitalization of heavy assets. Dispose of the inventory of hotel assets, only retain the first-tier cities and provincial capital cities of self-owned property hotels, quickly withdraw funds, lay the foundation for transformation and development; withdraw real estate, accelerate the deregulation of stock land, commercial properties, etc., and fundamentally solve the company's heavy asset burden and capital pressure.
The above action plan is based on the large decline in the performance of Huatian Hotel. Affected by the epidemic and its own business, Huatian Hotel's revenue and net profit have declined significantly, and the debt ratio has climbed.
According to the above plan, the company plans to enter a benign development track by 2023, complete the de-assetization, reduce the asset-liability ratio to about 50%, and significantly enhance profitability. The hotel industry has managed more than 100 hotels, leading the hotel group in the central region.
In order to achieve heavy asset de-assetization and asset-liability ratio reduction, divesting assets is the most direct path, and the sale of Changchun Huatian Hotel at a discount is an example.
"Liquor Management Finance" noted that in 2021 alone, Huatian Hotel has listed related assets many times.
In March, Huatian Hotel intends to transfer 70% of the equity and related debt of its subsidiary, Zhangjiajie Huatiancheng Real Estate Co., Ltd., and in July, it intends to transfer 100% of the equity and related debt of its subsidiary, Xiangtan Huatian Hotel Co., Ltd.
If the timeline is extended forward, in 2019, the company also transferred 100% of the equity and related claims of Yiyang Yincheng Huatian Hotel Management Co., Ltd., 100% of the equity of Hubei Huatian Hotel Co., Ltd., part of the claims of Hunan Gray Tang Hot Spring Huatiancheng Real Estate Co., Ltd., and Zhangjiajie Huatiancheng Shopping Center.
It is worth noting that Hubei Huatian Hotel also found the intended transferee after lowering the transfer amount. The payment allowed the established hotel company to avoid being hatted for two consecutive years of losses.
However, the immediate divestiture of assets is not enough to extricate Huatian Hotel. By the first half of 2021, the company has a total of 44 self-operated plus managed hotels (40 have been opened), including 16 self-operated hotels and 28 hosted hotels. This is still far from its 2023 target of 100 companies.
At the same time, Huatian Hotel's asset-liability ratio in the first half of 2021 was 73.89%, an increase over the previous two years, and there is also a gap from the 50% red line set by huatian.
2
Why did you fall behind?
Huatian Hotel, which originated in Hunan, has a glorious history. Formerly known as the second guest house of Hunan Military Region, it became the first four-star hotel in Hunan in 1992, the first listed hotel in Hunan in 1996, the first five-star hotel in Hunan in 1997, and has been selected as "China's Top 20 Hotel Groups" for many times.
At present, Huatian Hotel's main business includes hotels and catering. The former has brands such as "Huatian Hotel", "Huatian Holiday Hotel", "Huatian Selection" and so on. The latter launched xiaoxiang Huatian "Nanyue Early Spring", Hunan Huatian "Chinese kitchen cuisine" and other new catering products. At the same time, the "Huatian Story", which is mainly engaged in the sale of hotel ingredients, supplies and famous and excellent products, has taken shape.
However, the current Huatian Hotel has gradually fallen behind. In terms of revenue, 515 million yuan in 2020 is less than one-third of the 1.645 billion yuan in 2012, and the company's deduction of non-net profit has been negative for 7 consecutive years, and its profitability can be seen.
In the industry's view, the turning point in the development of Huatian Hotels was a divestiture incident in 2011. At that time, Huatian Hotel will transfer the 7 Days Hotel Chain Group for 136 million yuan to Huatian Star, which has been established for 4 years, and divest its own economy hotel business. The company plans to use the funds for the operation and management of high-star hotels and the development of tourism resources.
From the current point of view, Huatian Hotel's action at that time may be slightly sloppy. From 2005 to 2015, it was known in the industry as the Golden Decade of Budget Hotels. Moreover, the eight regulations since 2012 have inhibited the development of high-end hotels for a considerable period of time. Between one increase and one decrease, Huatian Hotel missed many opportunities.
Moreover, Huatian Hotel was once "addicted" to capital operation. In October 2013, Huatian Hotel announced that it intends to invest 10 million yuan to set up a joint venture company with Rongwang Wisdom to enter the mobile game field. At that time, the capital market was enthusiastic about the game theme, however, huatian hotel's investment proposal was not passed by the shareholders' meeting.
On March 20, 2014, Huatian Hotel once again announced that it intends to acquire Tianjin Aidi Tongzhi Company, which is engaged in the online game industry. However, in the end, due to the lack of agreement with Tianjin Aidi Tongzhi, Huatian Hotel announced that it would abandon the acquisition.
Later, at the end of 2014, CEFC Hengyuan was introduced to complete the mixed reform, and diversified industries such as health, financial management and tourism were expanded. However, these actions have burdened Huatian Hotel. Looking at all industries, almost all enterprises with diversified layouts have failed to "break the circle" successfully.
3
The future of the hotel Xiangjun
As a regional state-owned hotel group, the future of Huatian Hotel is bound to be supported by the local government. In 2020, Xingxiang Group succeeded Huatian Group as the actual controller of Huatian Hotel.
Xingxiang Group is the only state-owned capital operation platform in Hunan Province. As of the end of 2020, Xingxiang Group has total assets of 57.6 billion yuan and net assets of 39.6 billion yuan.
With the entry of the new owner, Huatian Hotel's strategy has been adjusted, abandoning the original "hotel + tourism + real estate" model, adhering to the asset-light operation and development model, and insisting on focusing on the main business of the hotel and the coordinated development of "1 + N" multi-format.
Specifically, based on the main business of the hotel, vigorously develop hotel trade and washing, housekeeping, property, security and other life services, accelerate the disposal of heavy assets, and withdraw from the real estate industry.
In the main business of the hotel, we will upgrade the construction of the brand system, optimize the brands of "Huatian Hotel", "Huatian Select Hotel" and "Huatian Holiday Hotel"; promote the asset-light operation of the hotel, retain some high-quality self-owned property hotels, and achieve the management of more than 100 hotels through leasing operation, entrusted management, franchising or merger and acquisition; create the unique catering, room and other product standards of Huatian Hotel; rely on government and shareholder support to integrate internal and external hotel tourism resources in a timely manner.
Due to the short transition time and the repeated occurrence of the epidemic, Huatian Hotel is still not out of the quagmire. The company expects net losses in the first three quarters of this year to be between 225 million yuan and 240 million yuan. This narrowed from a loss of $381 million in the year-ago quarter.
It should be noted that the current market competition faced by Huatian Hotel has long been different from the past. International and local mid-to-high-end hotels have been attacking the city in these years, and the market has already entered the stage of hand-to-hand combat.
However, the current reform of this hotel Xiangjun is still worthy of expectations from the outside world. The experience and lessons brought about by its growth and development history also provide reference for the entire industry. At this time, we have only blessings.
Co-ordination 丨LaoDian Editor 丨 Wang Shanshan
Some of the pictures in the article come from the Internet
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