hollywood billionaire

Chapter 451 Digging Deeper
“Oh, I’m very familiar with this brand.”

Madison recognized it immediately when she saw the house-shaped logo with classic red and blue colors and a strong American style.

“After growing up?”

"There's one in New York, too. I know one. It's on Long Island. Long Island City." Madison nodded. "It's right next to the Queensboro Bridge. Every time I go from Long Island to the city... oh, no, it should be when I go back to Long Island from the city, I can see this sign."

"How does it look?"

"Your question got me thinking. I haven't walked this road for a long time... But if I remember correctly, it should be a not-so-new but very clean building. It has four or five floors at most and is gray. But the location is very good, right by the East River. I guess many rooms can directly see the East District. It's just that there is a factory in front of it, which will block part of the view."

"There's a factory on the East River, across the river from the Upper East District?"

"Obviously, yes."

“That’s OK, I’m sure in a few years it’ll be a factory-themed park surrounded by a bunch of super-overpriced apartment buildings – that’s New York.”

"You do know New York very well. The buildings here are either pencil buildings with each room priced at $100 million or gangsters' paradises. There is no middle ground." Madison teased his hometown. "But before the Port Authority decides to turn the east coast of Roosevelt Island into another billionaire gathering place, the AmericInn should continue to remain in that inconspicuous and shabby state... By the way, how many stars does the AmericInn have? Does it have a star rating?"

"It has three stars marked on its logo, but I think... it's not very accurate." Han Yi's fingertips passed under the three five-pointed stars (one large and two small) above the AmericInn logo. "It's just a standard motel brand... It's not an economy hotel like Howard Johnson or Super 8, but a medium-sized hotel with an average of less than 140 rooms and limited additional services."

"What's the difference?" Madison Beal, who grew up in a wealthy area of ​​Long Island and has never stayed in a four-star hotel when traveling, finds it difficult to understand the difference between the two.

"If we want to know in detail, there are many technical specifications for reference... But to put it simply, an economy hotel - at least in the United States - is one where there are always fully armed police officers at the door, a few lights in the corridor are always out of order, the bed in the room is shaky, and there are bloodstains all over the carpet, mattress and walls. A mid-sized hotel is the place you would choose if you want to avoid the above situations but don't want to spend too much money to stay in a star hotel in a certain city." Han Yi's explanation was vivid and very vivid for everyone living in the United States.

"I see." Madison made a brilliant summary, "It's the kind of place that scumbags can't afford, but I don't think it's too expensive."

"Absolutely right!" Han Yi laughed, "Imagine that you have just visited Yellowstone National Park, bid farewell to the beautiful Old Faithful Spring, and drove back to Los Angeles..."

“Oh my god, I drove to Yellowstone?”

"Yes, because you and your husband have four children, a cat, and two dogs."

"We are really fertile." Madison did not lower her voice this time.

"What?" Xu Yiru stabbed her with her eyes.

"I'm talking about me and my husband... an imaginary situation." Madison swirled her index finger above her head. "Focus, Grace, focus! This scenario was constructed for AmericInn. It has nothing to do with how many children my husband and I have or how happy we will be in the future."

"...I'll find someone else to represent you. Kian, are you still on night shift today?" Han Yi called out to the private security guard Kian Griffin who happened to be passing through the corridor.

"I'm basically the one on night shift." Jian shrugged. "Feiyamu has to go back to take care of the children, and I don't have anything to take care of. I don't even have a dog at home."

"You don't really need to stay here all the time." Han Yi pointed to the top of his head. "There's a 24-hour security system, and the police station is only an eight-minute drive from here... It's not the 1960s anymore, we can do it on our own."

“Nah, I won’t abandon my clients, ever. It’s called professional ethics.” At this point, Kian grinned and shook a can of iced Heineken in his hand. “Besides, Bobby will be with me in the security control room today. Denver Broncos vs. Oakland Raiders, Sunday Night Football.”

"Is Bobby here too?"

"Of course I'm here!" Bobby Lewis, the mansion's gardener, appeared at the right time, holding an oversized bag of original Lays potato chips in his left hand and a - although it sounds stereotypical, it is true - Kentucky Fried Chicken bucket in his right hand.

"Good evening, Uncle Bobby."

"Hi, Uncle Bobby."

The girls all like this black uncle who is always smiling.

"Good evening, my nieces." Bobby chuckled, then looked at Han Yi, "Don't worry, Yi. These beers and food were bought by Jian and I... We won't get drunk. Half a dozen beers is just enough for us to rinse our mouths."

"It's okay. I told you you could take whatever you wanted from the fridge, and I meant it."

"Thank you very much, but we will never do that because of respect, because of boundaries, because..." Bobby shook the fried chicken bucket, "it'll never be finger lickin' good like this bucket."

"Haha, that's true." Han Yi laughed. He had prepared about 20 or 30 jokes about fried chicken in his mind, but he was never going to tell them out loud. In the current American social environment, maintaining cultural sensitivity is much more important than maintaining a sense of humor. "When does the game start? Do you have two minutes?"

"There are still five minutes until the third quarter starts... But it's okay. We don't like the Broncos or the Raiders. We're just looking for an excuse to drink together." Kian nodded and put the Heineken beer next to the sink. "Is there anything I can help you with?"

"We are doing... market simulation." Han Yi spread his hands and pointed at Jian and Bobby, "We are assuming a consumption scenario - suppose you and Bobby are going on a road trip..."

"Alright." Kian put his hands on the counter and responded with interest, "Where did we go?"

“Yellowstone.”

"Great!" Bobby's voice is always hoarse, but always high-spirited.

"You guys had a barbecue, drank some beer, had a blast, and then you drove back to Los Angeles..."

“Shit, we drove to Yellowstone from Los Angeles?”

"Really? Really?!" Madison seemed to have found a soulmate, "Who would drive to Yellowstone?"

"If we drive, we have to go through Utah, right?"

"Ew, Utah."

"How could I possibly last that long without coffee?"

"These details are not important." Han Yi frowned, "Just treat it as if you just bought a new car and want to run it in... Let's get back to the point. You drove back to Los Angeles from Yellowstone. As it got dark, you decided to find a small town to stay overnight. Half an hour later, you arrived at the first city you encountered on the road, Rexburg, Idaho."

"Is there really such a city?" McGrady asked.

"Yes, the population is 24000, and there is indeed an AmericInn there." Han Yi gave a positive answer, "Brigham Young University's Idaho campus is there."

"Then run quickly, what are you thinking about?" Jian curled his lips, "There is definitely no coffee here."

"You can drink coffee. There's a Starbucks right next to the I-20 freeway." Han Yi didn't know whether to laugh or cry. It seemed that the jokes about regional discrimination and religious discrimination had to be played by Americans themselves. "In this case... come and take a look at this Google map and all the hotels marked on it. If it were you, where would you choose to stay?"

"let me see……"

Ji An took the phone that Han Yi handed over, and the map on the screen showed seven hotels.

"First of all, I won't stay at that Best Western. It's right next to the Rexburg-Madison County Airport. It's definitely noisy. Ignore the Super 8. I don't want to die in Idaho for no apparent reason... What the hell is this Raspberry Garden Luxury Suites? $150 a night for three shabby houses? You call it a luxury suite hotel?"

"As a business owner, the worst thing you can do is try to claim that you built a luxury hotel on a shabby piece of land in a remote town." Han Yi's eyes swept back and forth in the room, explaining his own views to everyone, "There is no such infrastructure, and there is no such audience."

"Isn't it? I'm definitely not going to spend $150 to stay in Idaho for a night unless I step over my dead body." Bobby Lewis also leaned over to look at the map. "By the same token, this SpringHill Suites Rexburg looks better, but it's not worth my $150 just to make do with one night. Wait, wait, the Hampton Inn next door is also $120? Crazy?"

"After looking around, I would choose this... AmericInn." After exchanging a glance with Bobby, Jian returned the phone to Han Yi, "Did I make the right choice?"

"There is no right or wrong option." Han Yi had already hidden the AmericInn brochure under the dining table to ensure that Kian and Bobby's choices would not be affected by it. "Can you tell me why you chose this hotel?"

"Well, first of all, it's right next to the entrance of the highway. I can take a nap, get up, leave town, and be on the road in two minutes. In addition, across from it is the Starbucks you mentioned, and there is also an Applebee's. This means that when I arrive in the evening, I can have a good dinner without leaving this square. When I leave in the morning, I can just buy a cup of coffee before driving. Simple, convenient, and comfortable, who can ask for more than these three points on a road trip?"

"That's what I wanted to hear, Kian. Thank you, and thank you, Bobby."

"At your service anytime, boss. If you still need us, we're in the security room." "And this is why AmericInn has become a successful hotel chain brand." Han Yicai continued, watching Kian and Bobby disappear outside the porch, "It understands what it is, what people expect of it, and where it should be located to meet those expectations. It has never dreamed of surpassing itself now, it just keeps increasing in quantity and copying and pasting things that have been proven successful... Let's take a look at a few more examples and you'll understand."

"AmericInn in Fort Dodge, Iowa, has an average price of $85 to $100. It is located at the junction of old I-20 and I-169, next to McDonald's and Subway, and a five-minute drive from Central Iowa Community College."

"At the junction of I-183 and I-40, Hays, Kansas. There's Bo Peppers Fried Chicken, Applebee's, and Walmart in the same shopping mall."

"McAlester, Oklahoma, right next to the north-south artery I-69. The highway access road is right outside the car. There's Arby's on the left and Chili's on the right."

"You see, this is not a fancy brand, it's not sexy at all. Its name won't excite people, but it digs deep, deep into the heart of the country, directly reaching those who live in remote areas and whose needs are ignored." At this point, Han Yi knocked on the table, "The silent majority is the ultimate and most influential force, and many people will realize this fact on Election Day."

"You're talking about... our election?" Maddie was stunned.

“No, no, no, I’m talking about the elections in North Macedonia… your elections, of course.”

"So, from what you've said, you really think the Republicans will win the entire election?" Maddie's eyes widened as she looked at him in disbelief. "Under the leadership of that lunatic?"

“No politics in this room.”

Yi had no interest in discussing this with anyone in California. Before Election Day 2016, no one here believed that the real estate tycoon from New York could actually move into the White House. Under the influence of mainstream media reports and late-night talk shows, most people regarded him as a complete joke, a reality show star who acted too much and was too dedicated.

They have intentionally or unintentionally ignored the silent majority living in the heart of this country.

The same logic applies to many investors who would turn their noses up at AmericInn, which focuses on serving affordable consumers in the Midwest.

What’s cool, trendy, and sexy is the only thing that matters.

The popularity of this concept is the success of consumerism and the failure of capitalism.

"I have not made any predictions. I have not donated to any presidential candidate. I am not a U.S. citizen and if I did that would be foreign interference in an election."

Han Yi's self-defense is actually not wrong - he did not donate to the presidential candidate.

Those who accepted his donations were all members of Congress.

"I just want to say that for emerging investors like us, if there is no mature brand and no fancy Wall Street address to put on our letterhead, then we need to see the essence through the clouds and dig deep into the soil to dig for treasures. Antoine does a good job in this regard." Han Yi put the brochure back on the table. "Who can guess, with a room costing $85 to $100, what is the average daily revenue per room at AmericInn?"

"30?" McGrady guessed conservatively.

"higher."

"35?" Xu Yiru also joined in.

"higher."

"...45?" McGrady frowned and raised the bet to another level.

"It needs to be higher."

"It's not... $55?"

"The specific number is $57.93."

"Wow." Xiaoru exclaimed, "Then calculated proportionally... AmericInn's profitability is almost three times stronger than Banyan Tree, whose average room price is 400-500 US dollars, but the average daily revenue per room is only 79 US dollars?"

"This is the benefit of digging deep into the soil." Han Yi nodded heavily and laughed. "The RevPar of the Ramada Hotel of the same grade is only 36.05. AmericInn currently only operates in 23 states in the United States, and most of its stores are in the Midwest. There are 200 self-owned properties and 11600 franchise stores, with a total of 67.2 rooms. In other words, the daily operating income of this brand is 2.45 US dollars. Expanded to a full year, that is 2015 million US dollars. In 38, the average gross operating profit of American hotels was 9310%, so the profit that the AmericInn brand can generate each year is million US dollars."

“How much is their franchise fee?”

"35000 US dollars is the brand franchise fee. The rent and decoration costs of each store are borne by the franchisee, and AmericInn provides designated suppliers."

"How much is the commission?"

"5% of the operating income, and the other 2% is marketing expenses."

"That's 7% in total." Xiaoru calculated quickly, "That is to say, AmericInn can get $1543.5 million in commissions from franchisees every year. If the 23 hotels it owns are operating at the same level, the gross profit will be about $1070.65 million, and the net profit should be around 10-15%, right? Even at the lowest, the net profit is $281.75 million... Add the two together, $1825.25 million, minus the operating expenses of AmericInn's headquarters... I estimate 1600 to 1700 million, right? Since hotels are all operated in towns and suburbs, it doesn't make sense for them to put their headquarters in a place like Manhattan and employ one or two hundred people to work there."

"You're right." Han Yi replied, "The current owner of AmericInn is Jim Graves, a businessman from the Twin Cities of Minnesota. AmericInn's first store is in the Twin Cities, and its headquarters is also in the Twin Cities. The operating costs should be very low."

"That name sounds familiar." Madison thought.

"He's the same Democratic candidate who ran against Michelle Bachmann in 2012."

"No wonder!" Maddie suddenly realized. She was not interested in politics, but Michelle Bachmann, a congresswoman from Minnesota's 6th District, was a celebrity who was often ridiculed on Saturday Night Live and other comedy shows, mainly because of her conservative stance that was as far to the right as possible and some crazy words that seemed unreasonable to contemporary young people.

As Michelle Bachmann's opponent in the election, Jim Graves' name naturally often appears in the newspapers - and not just in the political edition. As Michelle's opponent, his name will occasionally appear in the society and entertainment editions.

“So he is planning to focus on politics, and that’s why he plans to sell the brand?”

"No. After Michelle gave up the election in 2013, Jim didn't continue to run. Through this experience, he should have gotten to know a lot of Democratic bigwigs, and he is now upgrading his industries. InterContinental Hotels, Marriott Hotels, high-end restaurants, and it is said that he recently acquired a piece of land in New York to develop luxury real estate." Han Yi briefly introduced what Antoine had investigated.

“So he wants to sell all 223 stores of the hotel chain he has built over decades to achieve industrial upgrading?” Xu Yiru shook her head with some regret. “I hope he realizes that the brand he is giving up is his 401-K retirement insurance.”

"I hope he doesn't realize this." Han Yi laughed. "He doesn't ask for much... 1.7 million US dollars to transfer the entire brand, and he doesn't have any other requirements for the transferee, just a one-time payment. Maybe he needs funds for another real estate project. Who knows?"

"After hearing about the total investment amounts of the previous projects, I actually feel that $1.7 million is not a lot of money." Madison said in amazement, "What's wrong with me?"

"With so many branches, $1.7 million is actually... not a lot." Xu Yiru thought further, "Moreover, these seemingly inconspicuous motels have laid a very good foundation for you. In the future, whether you want to cooperate with other hotel management groups or acquire properties to build your own brand, this is a strong endorsement and a good case study."

"OK, so how do we decide?"

Han Yi stretched out his index finger and pointed it at Xu Yiru.

"I think it's okay." Xu Yiru expressed her support.

"Maddie?"

"I'm not an expert, but I think it's a wise investment... after you explained it in detail." McGrady also echoed.

"Yujin?"

"Yujin? Hey, where has your mind wandered to again?"

"I... I'm also... thinking about this... the investment prospects of AmericInn." Zhao Youzhen came back to his senses, sat up straight, and cleared his throat. "I think it's great. If you think it's feasible, then go for it boldly. I believe in you... By the way, check your phone, Yi, they just sent an email about the streaming performance of "Bad and Boujee" last week."

"It was sent today? Sunday?"

Han Yi frowned in confusion, muttered something in a low voice, and then slid open the screen of his mobile phone.

Where is the email?
The only thing that appeared in the push notification bar was a message sent to him by YooJin Cho via WeChat.

"Can you take my car when you go to work tomorrow?"

(End of this chapter)