China’s tourism industry may benefit from a government directive ordering State-owned enterprises to shed their hotel assets and focus on their core businesses.
Tourism officials have expressed a strong interest in purchasing some of the government’s hotels. The State-owned Assets Supervision and Administration Commission (SASAC) made the announcement but added that state-owned enterprises whose core business is hospitality will not be included in the plan.
Hotels taken off the books of government-owned enterprises could be transferred for free to other State-owned businesses specializing in the hospitality sector. In addition, ownership could also be transferred via corporate agreements or public sales.
People’s Daily Online
reports it is estimated there are currently over 2,000 State-owned enterprises nationwide, across a variety of different market sectors, that set up their own hotels. Each firm owns more than one property.
That unofficially makes the government the nation’s largest hotelier, ranking way ahead of privately owned 7 Days Inn with over 300 hotels, and Home Inn, with a portfolio of over 600 hotels.