The wealthy entrepreneur: I want to support millions of employees!.

Chapter 1099 Tongcheng's Concessions! Cooperation and a Betting Agreement!
Su Yang was in a good mood after receiving Sun Zhiliang's call.

Without a doubt, this is definitely a peace talks!

Su Yang didn't mind continuing the conversation, but he might not be able to handle a full-journey trip.

As for Tencent, they wouldn't offer an exorbitant price to join!
After all, Tencent's money is still money. These professional investors are very shrewd; they also need to consider their own company's investment performance and the return on investment.

The high-priced acquisition of Yida Hotel Management is clearly a risky move by Tongcheng Travel. They are unlikely to pay for Tongcheng's services... If they want their help, there will definitely be additional conditions!

Sun Zhiliang said helplessly, "Chairman Su, you win!"

Su Yang feigned surprise and asked, "You mean you're going to give up Yida Hotel Management and hand it over to us?"

"No!" Sun Zhiliang denied. "I mean, we can consider cooperation!"

Giving up Yida is impossible; he will incorporate the Yida Hotel brand into their company's hotel product line no matter what!

“That’s right! This is a collaboration, how can you say I won?” Su Yang said with a smile, “This is a win-win situation for both of us!”

"Okay! It's definitely a win-win situation!"

"Chairman Sun, you should be happy to have us on board!" Su Yang said earnestly. "I have great confidence in running a hotel, and with the addition of Jufan Hotel Management, you've gained a powerful ally!"

"Chairman Su is so confident?"

Sun Zhiliang could clearly feel Su Yang's confidence, and that confidence was even somewhat infectious to him!

“Of course!” Su Yang said with a smile, “I have never failed in business!”

"Is that so?"

"From Jiuxiang Foods to Jiuxiang Catering, from Xinghuo Fitness to Gaoxing Retail!" Su Yang chuckled, "Even when I was making cola drinks, I managed to turn a profit!"

Sun Zhiliang fell silent!

He had to admit that Su Yang was indeed a business genius who spanned multiple fields!

His defeat at the hands of Su Yang this time is not shameful!
Perhaps... a collaboration wouldn't be bad?

If Su Yang can really run the hotel well, then providing traffic recommendations might not be a bad idea?
At this point, Sun Zhiliang began to consider the benefits of cooperation between the two parties!
Since he can't stop Su Yang anyway, why not consider the potential benefits of cooperation?

"Could Chairman Su come to Hong Kong? Chairman Wang is getting impatient!"

"can!"

After hanging up with Sun Zhiliang, Su Yang called Wang Jianlin.

"Chairman Su, is there something you need?"

"I reckon we'll have to partner with Tongcheng!"

"I see!" Wang Jianlin said calmly. "I understand!"

Clearly, he was mentally prepared!
Su Yang then added, "But Mr. Wang, you should remember my kindness!"

Wang Jianlin asked in confusion, "What do you mean by that?"

"If it weren't for my involvement, I estimate Yida wouldn't have sold for 3 billion!"

"That...that's true!"

Wang Jianlin admitted this point. If Su Yang hadn't interfered, Yida Hotel wouldn't have fetched such a high price... He knew this from Tongcheng's first offer.

"You owe me a favor!"

“Okay, but I don’t like owing favors!” Wang Jianlin thought for a moment and said, “How about I sell you a few Yida Plazas at a discount, and you repay the favor?”

"Uh... never mind!" He currently has no plans to invest in asset-heavy projects; he'd rather buy US stocks than buy Yida Plaza!
"Then forget it, it's yours to leave!" Wang Jianlin felt that Su Yang was a wonderful person. If they met again in their youth, they would definitely become friends. "But if you can cooperate with Tongcheng to run a hotel, you should be making a profit!"

On June 2nd, Su Yang led a group of people to Hong Kong to negotiate with Tongcheng Travel on the matter of jointly acquiring Yida Hotel Management.

At Su Yang's insistence, Jufan Hotel Management invested 1.6 billion yuan to acquire 51% of Yida Hotel Management's shares and management rights over Yida Hotel Management.

Yida Hotel Management must also cooperate deeply with the Tongcheng Travel platform.

For example, Tongcheng enjoys priority or exclusive rights to new store launches, membership system integration, and marketing activity resources.

There is also a "most favorable treatment" clause to ensure that the room rates and package policies obtained by the Tongcheng platform are the best among all channels, thus guaranteeing its market competitiveness.

In addition, subject to compliance with laws and regulations, Tongcheng requires limited access to its data interfaces so that Tongcheng Travel can analyze user accommodation preferences and optimize its overall travel product recommendations.

There are also preferred shares and dividend commitments; Tongcheng's 49% stake may be in part or in whole "preferred shares".

This means that when distributing profits, Tongcheng Travel has the right to receive a stable dividend before Jufan Hotel Management (which holds common stock).

In addition, Tongcheng also required Jufan Holdings to sign a performance-based agreement, stipulating that Yida Hotel Management's revenue and net profit would grow at an average annual rate of no less than 20% within three years, and promising to convert a certain percentage of Yida's customers into members shared by Tongcheng and the hotel.

If this cannot be accomplished, Su Yang will need to transfer some of his management rights or compensate Tongcheng Travel with a portion of its shares in order to regain control.

In addition, the two parties also agreed that after 5 years, Tongcheng Travel has the right to require Jufan Hotel Management to repurchase some or all of its shares at the agreed price (initial investment amount + 8% annualized interest).

Provides a safe exit channel for investments in Tongcheng Travel.

If Su Yang ruins Yida Hotel, they can still run away!
In addition, Tongcheng also needs to have a veto right on the board of directors. Although Tongcheng does not participate in day-to-day management, it will request a veto right on major matters in the board of directors, including annual budget and over-budget expenditures, major asset disposals (such as the sale of core hotel properties), issuance of new shares or major debt financing, etc.

Of course, completing the process also requires considerable resources!

Tongcheng needs to provide Yida Hotel brand with a prime homepage entry, the hotel channel homepage of the app, and a permanent exclusive recommendation area for Yida hotels to ensure top-level exposure.

It is also necessary to deeply integrate Tongcheng's massive membership system with the hotel's membership system to achieve interoperability of points and sharing of benefits.

This means that guests staying at Yida Hotels can accumulate points that can be redeemed for air tickets or vacation packages, thereby increasing user loyalty.

In addition, Tongcheng Travel also relies on its big data capabilities to accurately push hotel packages and offers to core users and business travelers, thereby achieving efficient traffic conversion.

In addition, Tongcheng will leverage its centralized procurement advantages to help hotels reduce costs, provide financial support, management system access, and smart hotel solutions as technical support!
The two sides were slightly unequal, and it seemed that Su Yang was at a disadvantage.

However, Su Yang felt alright. He currently only runs one hotel, so it's normal for his hotel management skills to be questioned... He's not Lao Wang!

And what about Tongcheng Travel? It's one of the leading travel platforms in China, and it's backed by Tencent, allowing it to leverage Tencent's extensive traffic for promotion...

Most people would assume that Su Yang got the better deal by partnering with such a large company to run a hotel!

After all, the resources that Tongcheng has invested are something that many domestic hotel chains would only dream of!
Think about it, just like Alibaba or JD.com, they give their company's products free homepage recommendations every day... and even provide various points subsidies!
"But what if I exceed the performance targets in this deal?" Su Yang said, patting the table. "Shouldn't I be able to get a larger share of the benefits?"

Su Yang is quite confident that Yida Hotel Management will achieve 20% annual growth in revenue and net profit over the next three years!

Because Yida Hotel Management's profits were already low last year, and there are still more than 400 hotels that have not yet opened, this is still quite advantageous for them!

Based on his experience with Tiancheng International Hotel, completing these tasks within three years should not be a problem.

If he really can't complete it, he can totally consider leaving the hotel industry!

Of course, this 20% growth is not because Tongcheng is giving him preferential treatment. It's mainly because Su Yang has money and can go it alone without them, but they are reluctant to give up Yida Hotel Management!

Furthermore, even during the hotel industry's growth phase, a 20% compound annual growth rate is quite difficult to achieve, but not outrageous either.

With the current low profit margins of Diejia Hotel Management and the support from Tongcheng Travel... it's not that difficult!

Sun Zhiliang pondered for a moment and said, "Okay, that's fair!"

(End of this chapter)