Vienna Hotel Huang Deman’s inspiring entrepreneurial story

Innovation and entrepreneurship refers to innovation based on technology, product innovation, brand innovation, service innovation, business model innovation, management innovation, organizational innovation, and market innovation. Entrepreneurial activities carried out based on one or more innovations in aspects such as , channel innovation, etc. Innovation is the characteristic of innovation and entrepreneurship, and entrepreneurship is the goal of innovation and entrepreneurship. The following is the inspirational entrepreneurial story of Huang Deman of Vienna Hotel that I carefully compiled. Everyone is welcome to learn from and refer to it. I hope it will be helpful to everyone.

Huang Deman, born in Yangjiang, Guangdong Province, was admitted to university in 1977. He is the founder and CEO of Vienna Hotel Group. Business model innovator and practitioner in China's hotel industry. It is known as "the first boutique hotel chain in China".

Huang Deman, Chairman of Shenzhen Vienna Hotel Co., Ltd.

Founded in 1993, Vienna Hotel is the world's first hotel chain with the theme of "music and art" and insists on creating "music and art" for customers. With the core consumption value strategy of "five-star experience, two-star consumption", after seventeen years of innovative development, Vienna Hotel has opened and plans to open a branch network all over the country in major and medium-sized cities. Vienna Hotel currently has 79 boutique business hotels (including hotels in operation and under preparation), more than 12,000 guest rooms, more than 8,000 dining places, and more than 4,000 employees.

On the evening of April 28, 2016, Jinjiang Co., Ltd. issued an announcement: It planned to acquire 80% of the equity of Vienna Hotel Co., Ltd. for RMB 1.7488 billion, and to acquire 80% of Shenzhen Baisui Village Restaurant Chain Co., Ltd. for RMB 800,000. % equity. Both companies were previously 100% held by Huang Deman personally. Based on the Jinjiang share acquisition consideration, the overall valuation of Vienna is 2.186 billion yuan.

Based on this calculation, Huang Deman, who started from scratch, earned 2 billion in 23 years.

Huang Deman’s personal honors:

“Global Hotel Outstanding Meritorious Figure”,

“2010 Brand China Chain Industry Person of the Year”,

"Outstanding Entrepreneur of Cantonese Cuisine Innovation in China",

"Top Ten Chinese Food Culture Contribution Awards",

"New Leader in China's Hotel Industry" and other honors and awards.

Huang Deman’s Entrepreneurship Story

Huang Deman was born in a poor mountainous area in Yangjiang, Guangdong Province. He was admitted to university in 1977, but because he could not borrow 50 yuan for the physical examination fee, he had no money to study. , had no choice but to go home and farm. In 1993, he came to Shenzhen to start a business with 5,000 yuan. He contracted a small hotel for 3,000 yuan, and the remaining 2,000 yuan was used for earthworks. In the next six years, the latter completed the initial capital accumulation of several million yuan.

In 1999, the earthwork project was unsustainable. Seeing the 50% annual profit of the hotel, Huang Deman began to focus all his energy on the hotel industry. The first hotel Huang Deman opened had 229 guest rooms at a cost of 40,000 yuan per room. He invested more than 9 million yuan in the initial stage, but he only had three to four million in cash. But with 30% cash investment, Huang Deman completed the layout of more than ten stores bit by bit. Cash is mainly used for property deposits, air-conditioning appliances, and other necessary prepayments for decoration, etc. The remaining 70% of the cost is for decoration, furniture, etc. These can be financed by loans from suppliers first, and at the same time, relying on the profits generated by other stores to pay the suppliers' debts while decorating. "We have always been down-to-earth in doing things ourselves, and our suppliers are willing to support us." Huang Deman said.

Generally, it costs 70,000 yuan to invest in a guest room of the same specifications. Huang Deman does not outsource it. He hires a construction team and buys materials himself, and can complete it with 40,000 yuan. While careful calculation, cost savings, profit creation, and continuous investment were made, Vienna completed the initial investment by borrowing money from suppliers. "If we have to talk about financing, let's get financing from suppliers," Huang said. At that time, he couldn't get any loan from the bank. "The hotel is not doing well. The money invested in decoration is almost equivalent to waste. The bank borrowing money is equivalent to wasting money."

100 with the budget hotel Compared with the house price of ~200 yuan, the house price in Vienna is between 200 and 300 yuan, and six service categories such as cafes, buffets, and conferences have been added. Although the total cost per room has increased by 15 to 30 yuan, the unit price has increased by 100 yuan. , the overall profit is 70 yuan higher.

Relying on the business philosophy of "five-star decoration, two-star consumption", Vienna has never spent a large amount of advertising expenditures. It is basically a word-of-mouth effect. The occupancy rate is as high as 100% and it has 1.3 million members. "Wherever we go, these members will follow." Huang Deman said. "Nowadays, many people who are engaged in marketing and brand planning say that the fragrance of wine is not afraid of the depth of the alley. It is outdated. I believe in quality. It will never be outdated. I will always believe in it."

1999 to 2006 , with an average of two stores per year, 16 chain stores have been opened in Vienna. The annual turnover in 1999 was 10 million yuan, which increased to nearly 400 million yuan in 2007, with a net profit of 51.8 million yuan. The growth rate in Vienna exceeded 100% or even 200% every year.

Huang believes that after more than ten years of experience accumulation, Vienna has formed a mature management system and personnel training system, and now it is time to achieve economies of scale. But opening dozens more stores requires a lot of capital, and it will be very slow if we continue to follow our own snowballing method. In addition, competitors such as AccorHotels, Intercontinental Holiday Inn, Hanting Business, etc. have begun to expand, but are still as slow as before. Huang Deman feels that there is definitely no way to win this battle.

In October 2006, the budget hotel Home Inn was listed on Nasdaq. Huang Deman was very stimulated. He saw that Home Inn was launched three years later than himself. There were more than 100 hotels when it was listed, and he had only just launched it. It was 1/4 of others, and he began to consider borrowing money from external capital to speed up his own business like Rujia.

At first he didn’t know how to find institutional investors. In June 2007, a financial consulting company took the initiative to find Huang Deman and introduced SoftBank SAIF Fund to him. In June, he met Yan Yan, president of SoftBank SAIF, and in September SAIF transferred 115 million yuan to Vienna's books, accounting for 23% of the shares. Vienna recently plans to introduce a French fund and start its listing plan.

When Huang Deman, who has never dealt with capital, introduced institutional investors, he was most worried about gambling and the decision-making obstacles that institutional investors might bring. In order to protect their own interests, many institutional investors will set up a lot of betting clauses. "If an entrepreneur falls into it, he will do a lot of stupid things, such as getting money and not doing the brand promotion that he should do, and it will become a betting situation." Profit has caused the company to only pursue short-term profits and ignore the overall consideration of long-term development, which has brought great disaster to itself. "He feels that these problems must not happen to him. "My first consideration is the best overall interests of the company. I will still do what needs to be done and pay what needs to be paid. I will not be as stupid as other bosses. I will not do such a thing."

In his cooperation with SAIF, Huang Deman asked the other party to agree that no matter how bad his business was, he could not dilute his equity indefinitely and it could not exceed 3 points, that is, it could not exceed 26% on the basis of 23%. "This is a negotiation. If everyone agrees, we will do it. If you don't do it, I can't do anything." "I must hold more than 50% of the shares. We are not playing with capital here. We really want to do one thing well. I have experienced After a lot of suffering and twists and turns, I will love my business very much and understand a lot of things."

After the introduction of investment, Vienna opened 18 new hotels in 2008 and plans to open 30 new hotels every year thereafter. 60 stores, ranging from two to dozens per year. The pole vault in Vienna will also face many challenges. First of all, it was difficult to maintain a high occupancy rate of 100%. After large-scale expansion, its occupancy rate dropped to 93%. Although Huang Deman believes that he will first ensure quality and maintain steady growth, Huang Deman faces challenges as to whether the camel company can succeed in accelerating its acceleration and whether it can complete the last jump before going public.

Vienna Hotel Chairman Huang Deman reveals the secret of success

Vienna Hotel founder Huang Deman once shared "Six Things Entrepreneurs Need to Have" at the Vienna Global Summit "Deep Sleep·Great Health" theme forum "Big Trait", this article will briefly analyze how founder Huang Deman led Vienna to become the first in the industry from the successful experience of entrepreneurs.

1. Mind

Regarding the six characteristics of successful entrepreneurs, Huang Deman was the first to put forward the mind. He believes that as a leader of an enterprise, he must have values ??that are good at sharing, be willing to help employees realize their personal ideals and pursuits, be willing to achieve others, and be willing to conquer the world and share the country with talents. This is also the Vienna Group's comprehensive implementation of internal entrepreneurship drive type, as well as the original intention of the corporate governance model of equity incentive talent partnership. In this passage, it is not difficult to see that Vienna Hotel Group attaches great importance to talents and improves its talent management incentive mechanism. The strong talent team has also become the basis for the development of Vienna Hotel Group, providing inspiration and strength for the continuous innovation and advancement of Vienna Hotel.

2. Pattern

“Entrepreneurs must have a sense of mission to achieve big dreams, be willing to make lifelong efforts to achieve a great company, and be dedicated to doing practical things. "This is also the second characteristic among the six characteristics proposed by Huang Deman - pattern. At the beginning of its establishment, Huang Deman positioned Vienna's brand development as a "light five-star" mid-range hotel with "five-star experience and two-star consumption". In the course of the next 23 years of development, Vienna has been unswervingly exploring the market - it was established in 1993 and opened franchising in 2009 when it already had dozens of directly-operated stores across the country. By 2015, Vienna was in With more than 500 branches across the country, the group has eight sub-brands and eight industrial chains. Vienna Hotel Group has formed a multi-dimensional industrial network system with hotels as the leading core industry, market competitiveness and sustainable industrial development. The establishment of this pattern has enabled Vienna to steadily move towards the position of the first brand of mid-range hotels even when it encounters a financial crisis or is in a sluggish environment in the hotel industry.

(The picture shows the Vienna Group’s health industry ecosystem)

3. Faith

Regarding faith, Huang Deman used the success of Jack Ma, founder of Alibaba Group, to explain ——Even Jack Ma, who is known as the "lucky man" by the public, has gone through countless hardships and hardships before achieving today's achievements.

Any success is hard-won. There is not much chance, coincidence or luck to speak of. Qualified entrepreneurs and successful companies should understand that only by having a strong belief that every effort will reap rewards and every effort will be rewarded, can something be achieved. Today, it seems that every cause must have an effect. Huang Deman's belief in exploring and developing mid-range hotels has remained unchanged for ten years. This is the "cause" that has made Vienna the number one brand of mid-range hotels.

4. Vision

The greatest ability of an entrepreneur is to foresee the future, to more accurately predict future social and business development trends, and to accurately formulate business models and development strategies. Vision is regarded by Huang Deman as the most critical and irreplaceable core task for entrepreneurs. It is precisely because Huang Deman has the vision to foresee the future that Vienna can grow from scratch, from small to large. When he opened his first store in 1993, Huang Deman made a bold innovation by delaying the hotel's check-out time to 2 p.m., which was widely recognized by the industry and became an industry standard. In 1997, he discovered the demand for short-term housing and became the first to introduce hourly rooms in the country. , became an important part of the guest room standards in today's hotel industry; after that, it opened up franchising and took advantage of the "Internet +" to formulate a grand plan of hundreds of cities and thousands of stores, and continue to advance with strong execution capabilities. Vienna's development reflects founder Huang Deman's insight into the market and consumers. Entrepreneurs use today's vision to win tomorrow's achievements.

5. Wisdom

“Entrepreneurs must have great wisdom.” This is agreed by everyone, but wisdom not only comes from talent, but also from acquired efforts. Huang Deman pointed out that later learning ability, experience, experience, and the guidance of experts, master guidance and godfather influence are the keys to the great wisdom of entrepreneurs, and learning ability also determines whether an entrepreneur can make the company stronger and bigger. And the key factors that can lead the enterprise to sail. In order to grow the company, Huang Deman not only requires himself to strengthen his learning ability, but also organizes the "Deep Sleep·Great Health" global summit in Vienna to discuss the innovation and development of China's hotel industry with many industry leaders and elites, injecting top industry expertise into the hotel industry. Innovative wisdom perspective. Within the company, he has also established a comprehensive training mechanism to improve the professional quality and business wisdom of all employees.

(The picture shows the "Deep Sleep·Great Health" Global Summit in Vienna)

6. Positive energy

Positive energy, Mr. Huang Deman will be the sixth quality - —Decomposed into the heart energy of doing things with heart, being a person with heart, and treating others with heart and energetic physiological energy. Vienna Hotel Group advocates that people should be upright and honest, be efficient and innovative in doing things, and treat others with respect and sharing. It requires corporate leaders and group executives to be forerunners and set an example for employees. Not long ago, the news that a room attendant at a Vienna hotel returned a huge amount of money to the owner was exposed by the media. This is a reflection of the "positive energy" in the corporate culture of the Vienna hotel. In addition, innovative models such as check-out without stopping and self-check-in through one machine also coincide with the efficiency and innovation proposed by Mr. Huang Deman.

In the past 23 years, Huang Deman has led Vienna to become an industry giant with his broad mind, advanced layout, firm belief, far-sighted vision, outstanding wisdom, and positive energy. He has also contributed to more hotels Leaders explained the development path to becoming the industry’s No. 1 brand. For entrepreneurs who are still ups and downs in the hotel industry, only by being well versed in business wisdom, grasping market development trends, and having strong personal beliefs can they push their brand to the top.

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