Spring Breeze Twenty Years

Chapter 869 Supply and Marketing Cooperatives

Director Hu was in his fifties, with completely white hair; he was a thin, dark-skinned old man wearing a white shirt and a worker's hat. Director Mou, on the other hand, wore a coat, had rather dark hair, and always seemed cheerful.

Xiao Wei didn't mince words, saying, "We urgently need a hotel to join us for development. Originally, I was thinking of going to Beijing to look for the Sheraton, Mandarin Oriental, or Hilton in Shanghai. Then, Xiao Hui," he pointed to Chen Hui, "said, 'Why not develop our Fengtian Rose Hotel?' I thought about it and felt it should work. So I asked the district head to introduce us."

Our plan is to buy out all the shares of the supply and marketing cooperative in Rose, invest capital to redistribute the shares with the Hong Kong side, upgrade Rose in Zhongjie to four stars, and then build five more Roses in the Northeast, all five stars. I'm not one to lie; that's the whole story. You can name your conditions, and we can discuss it.

If we reach an agreement, I'll buy it. If not, we won't waste each other's time. I can go to Beijing to negotiate for the Mandarin Oriental or the Sheraton. For us, it's not a big difference; it's just a matter of brand ownership, and it won't affect our income.

Director Mou said, "There are still differences. Just like when we brought in Hong Kong partners, funding was only one aspect; the main problem was the lack of planning and management expertise. We needed their experience. And the facts have proven that our initial decision was correct; we couldn't have built this kind of star-rated hotel on our own."

The People's Hostel has invested just as much as us, and its land area is even larger, but it can't get a star rating or reach a certain standard, mainly due to issues with its facilities and management.

I dare not say about other things, but Rose Hotel is definitely the top-notch star-rated hotel in Fengtian City. Don't be fooled by the fact that it is only three stars. Its facilities are better than those so-called four-star hotels built in recent years, and its occupancy rate is also higher. The brand has now become well-known.

And then there's the Trade City. I'm not bragging, but it's one of the top three shopping malls in all of Fengtian. You all know that, otherwise you wouldn't have set your sights on it, right? These two are our golden goose, our cash cows. Chairman Zhang is taking them all away like this; we really weren't prepared at all. Haha.”

Xiao Wei said, "If this were three years ago, I definitely wouldn't have mentioned it at all. Back then, as Director Mou said, Rose and Trade City were indeed amazing and booming. But it's not three years ago now. Wu'ai South Tower has sprung up, and private trading is everywhere. How many night markets are there in Fengtian alone? What about free markets?"

How many large hotels and restaurants are there now? High-end ones include the Agricultural Bank of China Sheraton, the Marriott of Beihang University, and several international business hotels run by foreign companies. As for the lower-end ones, there are hotels and inns everywhere now, it's not an exaggeration, is it? Just look at how many there are along Zhongjie Street from beginning to end.

We conducted our research, analyzing the current operating status and revenue of Trade City and Rose before deciding to buy them. In fact, we're taking over; we're helping you shed a burden. After all, they still have income now, but what about in two years? Unless you can invest a large sum of money for a complete overhaul, can you afford that?"

Director Hu said, "We have already started studying this matter. We just had a meeting a few days ago to see how to make some changes to the operation of the trade city. As for the hotel, in terms of both land and hardware, we are still among the top in Fengtian. We will definitely be in the top fifteen. We are not in a hurry. The occupancy rate is about the same for everyone. It is not just a matter for me."

Xiao Wei looked at Director Hu: "Does Director Hu run the hotel not to make a profit? Is it just to compete with everyone else, and just be about average?"

Director Mou said, "The trade city is our priority. The hotel isn't urgent for now; we'll find a way."

Xiao Wei said, "I've never been to school, nor have I ever worked within the system, so I'm a very direct person. I speak directly and act directly. As things stand now, the revenue of the trade city and the hotel is declining, and declining very quickly. Selling them to us is probably the most cost-effective thing for the supply and marketing cooperative right now. We can get cash back, do other things, and avoid continuing to invest aimlessly. We can get rid of two burdens that are about to start losing money."

However, as the old saying goes, you can't force a melon to ripen. I understand what the two directors mean: they don't want to sell, so we can build one ourselves. It won't take much effort, since we're building a building anyway. But, how should I put it? If the two directors don't have any better ideas, I suggest they just sell it to us, to avoid becoming competitors.

We plan to develop Rose into a high-end hotel chain, starting with five-star hotels, and expand to Jilin, Beihai, and Longjiang next year. We are also very sincere; otherwise, we wouldn't have asked the district head to approach you.

We hope that through the district head, we can reduce unnecessary speculation and increase sincerity, so that neither side wastes the other's time, and both present their true information. If it's a good fit, we'll close the deal; if not, we can remain friends.

The district head chuckled and said, "Old Hu, Old Mou, let's get serious. Xiao Wei and the others are young and have never worked in the system. Their way of doing things and their way of thinking are different from us old guys. Don't let a good thing turn into a misunderstanding. If you're going to sell, let's talk about the terms. How much do you want to sell for, or what conditions you have? If you're not going to sell, just say so. We can chat and have tea, and we'll still be friends when we meet again."

Director Hu glanced at Director Mu, who coughed and said, "Well, after the district head mentioned it the other day, we discussed it together. To be honest, there's not much consensus internally. Some comrades think it's better to continue operating, while others agree to sell. Old Hu and I are also in a dilemma about this."

Director Hu asked, "Chairman Zhang, what price can you offer?"

Xiao Wei said, "The item belongs to you, so I'm sure you have a good idea of ​​what it is. You name your price, and we'll buy it if it's right."

The district head said, "Are there any rooms available? Let Lao Hu and Lao Mou discuss it, maybe call home or something. This is a bit sudden."

Xiao Wei said, "Yes, any of the rooms next door will do."

The district head stood up and accompanied Directors Hu and Mou to the next room. Chen Hui said, "What does this mean? It feels a bit unreliable. It's like they're trying to raise the price."

Xiao Wei said, "Isn't this how it works in China? It's normal within the system."

Meanwhile, the district head entered the room and said to Director Hu, "Old Hu, what are you two doing? Weren't we having a good discussion?"

Director Hu said, "They seem quite capable. They can afford to sell this building for more money."

The district chief said, "Don't underestimate him just because he's young. Do you think he earned hundreds of millions for nothing? Let me tell you, Lao Hu, he has powerful backers. You can sell or not, but don't try to cheat me. I worked hard to build this relationship."

Director Mou asked, "Who's behind this? Whose business is it?"

The district head said, "It's their own business. Chairman Zhang's father-in-law is the head of the provincial capital's construction department, he's in the Party committee, and he'll definitely become a department head in the future."

(End of this chapter)