“Luxury Blue Horizon,” “Blue Horizon Jun Hua,” “Blue Horizon Langting,” and “Blue Horizon Xi Hua” are leading local brands in the luxury, medium, and high-end commercial and tourist hotel markets.

Luxury Blue Horizon: a luxury hotel with cross-regional influences, and floor area over 50,000 ㎡.

Blue Horizon Jun Hua: a mid-scale comprehensive business hotel with a floor area about 25,000-40,000 ㎡.

Blue Horizon Langting: a medium and high-end themed hotel with a floor area 10000-20000 ㎡.

Blue Horizon Xi Hua: a boutique hotel with distinctive fashion elements and a floor area less than 20000 ㎡.

(I) Brand Advantages

Our strategy is to develop the main brand together with the sub-brands. In order to avoid confusion by consumers, we seek coordinated development between brands, and establish core factors for market competition. 

(II) Differentiated Hotel Positioning (Fine Food & Graceful Residence) 

International hotel brands are mainly located in first and second-tier cities and often emphasize rooms over food. In third- and fourth-tier cities, there are not many travelers, and hotel consumers are mainly locals who not only require rooms, but more importantly food and other service facilities.
Due to different customer sources, operating models and products are different, so foreign brand hotels cannot match local market demands. Only local brands with reasonable scale, positioning, product structure, and location are competitive. 

(III) Management Model

A mature and complete management and support system ensures the operating quality of member hotels.
In 2000, Blue Horizon became Shandong’s first hotel group to be ISO9002 quality certified. 
In 2013, we passed the National Service Industry Standardization examination.
1. Centralized reservation system
A national 400 toll-free reservation hotline, hotel website, and mobile app reservation system
2. Group marketing system 
Carrying out the Group’s advertising strategy to advertise our brand image.
3. Integrated recognition system
Standardized hotel visual system
4. Planning and budgeting
Pre-opening technical services, pre-opening management, and post-opening operation planning and budgeting 
5. Group procurement system 
Pre-opening guidance provided for planning design and construction, preparations for opening, and product information databases. 
6 Standard operating manual 
Our Standards of Hotel Management Manual covers policies and executive procedures for all departments. 
7 Quality monitoring system
Unified organization and guidance for member hotels. We periodically inspect and test equipment, facilities, service standards, and management quality, and carry out an irregular examination system.
8. HR recruitment and training 
We have cooperation relationships with many domestic tourism academies. The Blue Horizon Vocational School cultivates roughly 2,000 tourism students each year, and our training center supports all Group hotels with comprehensive training.

(IV) Member System

Though our distribution channels, membership system, and mobile internet platform, we have about 2 million members with increasing demand for our rooms. Member purchases account for more than 30% of our total hotel revenue.

(V) Supporting Industries

The Blue Horizon Vocational School provides human resources.
The Blue Horizon Ecological Agriculture Company provides quality ingredients.
The Blue Horizon construction company is qualified for planning and design, renovation, and production and provision of hotel supplies.

In addition to guest rooms meeting international management and service standards, BHG also has advantages in food. Our differentiation strategy is “Fine Food & Graceful Residence.”

The Group has 2 million quality Preferred Guest members 

Integration of hotel industrial chain for profit maximization 

Three cooperation models: outsourced management, rental, and profit sharing

(1) Rental (limited to cities above the prefectural level)

Your company signs a rental contract with Blue Horizon, which obtains the right to use and independently manage the project area as stipulated.
Period of rental: 10-20 years
Rental conditions: Hotel functions optimize following the suggestions from Blue Horizon.
1. Your company provides all decorations, furniture, electric appliances, and equipment
2. Rental price: based on mutual benefit, negotiated based on budgeting.

 (2) Profit sharing (limited to cities above the prefectural level)

Period of cooperation: 8-10 years
Cooperation conditions: Both parties sign the cooperation contract.
1.Your company builds, decorate, and equips the hotel following the brand construction and planning standards of BHG. During the operating period, we assign full authority to a management team and employees for hotel operation and management.
2. We independently manage the hotel in accordance with the contract. Both parties share the Gross Operating Profit (GOP) from hotel management (ratio to be negotiated), referring to the balance after deducting taxes, costs, and operating expenses from sales turnover. 

 (3) Outsourced management 

Your company signs a contract to fully outsource management to BHG. BHG assigns a management team, led by a general manager (about 8-10 personnel) for fully outsourced management following Blue Horizon standards.
1. Period of Management: 8-10 years.
2. Brand franchise fee: negotiable based on management scale
3. Technical consulting fee: negotiable based on hotel construction preparation
4. Basic management fee: charged from the date of first clients payment; 3-5% of the sales turnover 
5. Performance management fee: charged from the date of first clients payment; 5-8% of the lowest GOP
6. Fees for membership and channel maintenance: 
5% of the actual orders revenue from BHG’s direct channels (bookings from the Group’s 400 reservation hotline, official website, and WeChat account).
Other fees are negotiated separately.

(1) City and Location Requirements 

1. Hong Kong, Macao, Taiwan, and overseas cities (Singapore, South Korea, Vietnam, Thailand); domestic first-tier cities (Beijing, Shanghai, Guangzhou and Shenzhen), provincial capitals, municipalities directly governed by the central government, cities under separate state planning, and sub-provincial cities (Hangzhou, Zhengzhou, Hefei, Xi'an, Shenyang, Nanjing, Fuzhou, Chengdu, Chongqing, etc.), sub-provincial cities (Suzhou, Dalian, Ningbo, Fuzhou, Xiamen, etc.) and key domestic tourist cities; prefectural cities with GDP over 200 billion; top 100 counties, and cities with great potential for economic growth.
2. Locations in the key areas of urban development plans, close to urban CBDs, political centers, and in commercial and residential surroundings, or located in urban planning unction zones (e.g. old city and new city or development zone), or notable scenic areas or tourist destinations, with abundant business and tourism resources.
3. Convenience for transport, located close to major urban roads, highway (bypass) exits, and railway stations, etc.
4. Locations at the junctions, intersections, T-intersections of urban major roads (at least 6 lanes both ways), or on either side of ring roads, with good visibility.

(2) Property Management Requirements 

1. Themed hotels with floor area about 10,000 ㎡, four-star hotels with floor area about 30,000 ㎡, and five-star hotels with floor area over 40,000 ㎡.
2. Contract period: 15-20 years, with explicit property rights
3. Number of rooms: themed hotels not less than 120; four-star hotels not less than 200; and five-star hotels not less than 260.
4. Dining capacity
4.1 Themed hotel: about 200
4.2 Four-star hotels: about 700 dining places. The dining area must be larger than 5,000 ㎡, meeting area larger than 2,000 ㎡, and multimedia hall about 800 ㎡, with no pillars and ceiling height at least 6m.
4.3 Five-star hotels:  1000 dining places. The dining area must be larger than 7,000 ㎡, meeting area larger than 3,000 ㎡, and multimedia hall about 1,000 ㎡, with no pillars and ceiling height not less than 6m.
5. Parking spaces: In principle, parking spaces are required at a 100:1 ratio with the operating area (one space for each 100 ㎡ of operating area).
Indices for major buildings: applicable to four-star hotels and above (themed hotels excluded, discussed separately)
1. Guestrooms must be larger than 35 ㎡, and over 4m wide.
2. Ceiling height: ground level: 6m; other podium buildings: 5m; main building section: 3.6m.
3. Municipal conditions (water, electricity, gas, steam, heating, sewage system) as required. 
4. Complete fire safety procedures or conditions to meet the requirements.

Blue Horizon has rich experience in construction management, cost control, schedule management, and new equipment and technology application. We have a full-time technical advisory group that can provide professional technical support services during project planning, design, and construction.

Our technical information and consulting services include: 

1. Market positioning based on professional market research 
2. Architectural design based on positioning
3. Professional decoration consulting
3. Detailed suggestions for functional layout
4. Equipment and technology standards in line with positioning
5. Information and services based on the Group’s purchasing platform
6. Timetable in preparation for construction and opening, and budgeting for opening 
7. Overall operation and development plans
8. Formulation and implementation of recruitment plans
9. All-around support for opening, taking advantage of the Group’s resources.
10. Overall business training before opening. 

I. Technical Support Service Changes 

1. Construction Preparation Period (2.4 million RMB)

2. Opening-Preparation Period (2.2 million RMB)

(II) Charging Standards for Outsourced Management Projects