Hotel Wuxi International: Expansion into China By Leong Choon Chiang

Publisher Ref No:	ABCC-2007-006	Pub/Rev Date:	2007
Industry:	Hospitality & Tourism	Case Length:	17 pages
Teaching Note Ref:	ABCC-2007-006(TN)	Teaching Note:	3 pages
Organisation:	-	Period Covered:	2006
Country:	China	Level:	Undergraduate/ Postgraduate

Publisher:

The Asian Business Case Centre, Nanyang Technological University

Abstract

In December 2006, Sinchong Property Investment Pte Ltd (SPIPL), a Singapore-based property investment firm, signed a letter of intent to take over a partially completed hotel project from the Wuxi City Authority for consideration of a sum of RMB45 million. The original property development called for a 22-storey three-star hotel building with 220 rooms and a four-storey staff building. The concrete structure had already been built, but due to financial difficulties, the Chinese owner had to relinquish the project. Within 60 days prior to the signing of the final agreement to take over the project, SPIPL was keen to ensure that the project was feasible and that the new hotel, its first such project in China, would succeed. During this period, Liang Chee-Sian, the Chief Executive Officer of SPIPL must assess the business challenges of developing and operating the new Hotel Wuxi International.

Issues: Market and financial analyses; project costing and hotel operations

About the Authors