Research of Economies of Scale of Chinese Hotels Based on Theory of Economies of scale: A Case Study of Jinjiang Hotel Group

The scale of Chinese hotels industry has been expanded since 2000. The gap in the scale between China and developed countries has been gradually decreased. However, it is generally accepted that the increase of the scale absolutely does not mean that the profits be enhanced. According to the hotel business's statistical data, the hotels that the scale is expanded don't achieve the expected return, even lead to the phenomenon of diseconomies of scale. Although the hotel belong to the non-significant cultural industry, which isn't characteristic of significant economies of scale, it is possible that the unit cost decreased, efficiency is enhanced through the special technology and management ways, when scale is expanded. In this paper, based on the theories of economies of scale, I will analyze the feasibility of economies of hotels scale and its factors how to be realized, then explore ways of operation, finally take Jinjiang international hotel group (SJI) as an example.