I Want To Be a Rich Man on Hong Kong Island

The high-level meeting of the Shining Star Group was held in the meeting room of the Ritz-Carlton Hong Kong Island.

The hotels of Shining Star Hotel Management Group are divided into three categories: luxury hotels, mid-range hotels, and resort hotels;

Luxury hotel brands - Ritz-Carlton Hotel, Shangri-La Hotel;

Mid-range hotel brand - Holiday Inn;

Resort hotel brand - place name + Ritz Hotel.

Currently, Shining Star Hotel Group has opened nine luxury hotels: 8 Ritz-Carlton Hotels (Boston, New York, Washington, Los Angeles, London, Paris, Osaka, Tokyo, Hong Kong Island), 1 Shangri-La Hotel (Hong Kong Island );

The luxury hotels under construction of Shining Star Hotel Group include: Four Shangri-La Hotels (Singapore, Kuala Lumpur, Bangkok, Fiji)

The strength of the thirteen luxury hotels naturally belonged to the well-deserved overlord in this era when the hotel industry was just starting.

Shining Star Hotel Group also has three luxury resort hotels, namely the Ritz Hotel in Las Vegas, the Ritz Hotel in Los Angeles, and the Ritz Hotel in Rome.

Shining Star Hotel Group also has 30 mid-range hotels, all of which are franchised Holiday Inns, including 20 in the United States, 7 in Europe, and 3 in Asia.

In the meeting room, there are 16 executives in total, including CEO Charles, CFO George, COO Louis, 12 hotel general managers (9+3), and Holiday Inn manager Will;

Most of them are Europeans and Americans, only two are Asians (one Chinese and one Japanese).

CEO Charles took the lead in making a report: "Currently, the overall operating status of hotels under Shining Star is at the forefront of the hotel industry in the world....... The service concept and modern hotel concept of the Ritz Hotel are the first of its kind. Our two magic weapons for success; when it comes to modern hotel concepts, that is the modern concept of hardware equipment and software (service) management, we have to mention our wise BOSS, every opinion he puts forward is precious, I I believe that everyone who is doing it agrees with this point of view.”

What Charles said seemed to be flattering, but in fact it was just an expression of true feelings, which won enthusiastic applause from the crowd.

In fact, Wu Guangyao also gave a lot of ideas based on some memories of living in a luxury hotel in his previous life, and became a time-space porter once;

These ideas have undoubtedly accelerated the process of modern luxury hotels!

Charles continued: "I have two options,

Need the consent of BOSS, and support from colleagues! "

Wu Guangyao said, "Well, tell me!"

Charles said: "First, we already have the naming rights of the Ritz-Carlton hotels outside the United States, so we should take the naming rights of the Ritz-Carlton hotels in the United States next, and acquire seven Ritz-Carlton hotels. In this way, the Ritz-Carlton hotels The Scarletton Hotel all belongs to our Shining Star Group."

Charles' first plan made everyone in the conference room feel short of breath. This is a big acquisition plan, and it is estimated to cost 150 million U.S. dollars.

Wu Guangyao was smiling, and everyone couldn't see the boss's decision.

Charles continued: "Second, we need to invest in a hotel management school to meet our rapidly growing talent needs."

After the two proposals were finished, Charles quietly waited for Wu Guangyao to express his opinion.

Wu Guangyao said to George, the chief financial officer: "You first report the financial situation to everyone."

George listened, paused for a few seconds, and said: "Last year (1966), there were five luxury hotels and 25 mid-range hotels operating throughout the year, with a profit of 10 million US dollars, of which... The rest of the hotels that have been in operation have a total profit of 3 million US dollars. …”

Why does George need to calculate it separately for everyone? Naturally, it is convenient for everyone to calculate the rate of return.

Wu Guangyao quickly calculated the rate of return, which was about 10%.

In other words, investing in a luxury hotel will take ten years to pay back!

No, this is the rate of return of the best-run hotels in the world;

The normal level should be about 15 years to pay back, and there are many hotels that are directly losing money.

Since the hotel industry is so 'unprofitable', why are there so many people chasing after it?

The reason is that hotels are a capital-heavy, cash-flow-heavy industry.

Heavy capital refers to the land and property of the hotel. You may get back the cost of a luxury hotel from the day you acquire the land, because the land and property are also appreciating.

In terms of cash flow, hotels are undoubtedly cash cows, which is very convenient for bank loans, and banks are willing to lend to hotels.

It is precisely because of these two willingness that even if it takes 20 years to pay back, there are too many capitals willing to enter this industry.

In short, investing in five-star hotel projects is not something ordinary people can afford. Generally, they will adopt a capital operation model to reduce operating risks by releasing equity financing. There must be sufficient financial support and a plan for a long-term investment return cycle.

Of course, Wu Guangyao is not an ordinary person, and he has too much money to spend, so capital operation is not considered for the time being.

Wu Guangyao said to everyone in the meeting room: "I agree with both of George's proposals! However, the acquisition of the six Ritz-Carlton hotels in the United States needs to be postponed for a year or two until I get the funds out of shipping. OK. First buy the naming rights of the Ritz Hotel in the United States and open a professional hotel management school, preferably with the cooperation of the local government of the United States. Make a good plan and send me the complete plan."

Wu Guangyao can get 200 million US dollars, but the money is needed to buy real estate and stocks in Hong Kong Island, and cannot be embezzled;

As for loans, Shining Star Hotel Management has already borrowed tens of millions of dollars, and will not make too many loans for the time being;

Moreover, as long as the U.S. naming rights of the Ritz Hotels are purchased, the six Ritz Hotels can be acquired at any time without any impact.

George said happily: "BOSS is wise..."

A flattery was delivered, so that everyone could see that George was not only capable, but also a strong flatterer. No wonder he could own 0.5% of Xingyao shares.

Wu Guangyao's next words made all the senior executives very excited.

"Five years later, I will take out 2% of the group's shares and carry out an equity incentive. If there is a hotel brand listed in the future, I can transfer it to it. You have to work hard, my shares are not so easy to get!"

Wu Guangyao doesn't care about 2% of the shares, but cares more about the five years that everyone is motivated to work hard.

Five years later, maybe this hotel group is worth 1 billion US dollars, and 2% of the shares are 20 million US dollars;

There are hundreds of mid-level and high-level managers in Shining Star, and they all have the opportunity to share this bonus.

What Wu Guangyao wants is these people, to have a state of being motivated.

After the meeting is over, a group of high-level executives will stay in the hotel for another two days, and the general managers of each hotel will hold an exchange meeting to learn from each other and summarize areas for improvement in operation.

In short, the general managers of these five-star hotels are the mainstay of Shining Star Group. \u003c/div\u003e