Analysis of BTG Hotel Mergers and Acquisitions of Home Inn

Abstract

The past forty years have seen increasingly rapid developments in the field of economy and hotel industry in China. One of the most significant current discussions in the hotel industry is in merger and acquisition (M&A). However, the analysis of M&A cases in the Chinese hotel company is unexplored. On this basis, this study aimed at investigating the impacts of BTG Hotel company M&A Home Inn. Based on annual report and other open-source data, this paper analyzes the motivation, risks and relevant business data of BTG hotel. According to the evaluations, this M&A case helps BTG Hotel achieve the business goals and reap business benefits, but also bring some operating risk. In general terms, this case accomplishes the expected purpose and can be considered as a successful M&A. These results contribute to the present understanding of the Chinese hotel company M&A and shed light on guiding further exploration of the effect of M&A on business valuation and goodwill.