Chinese hotel chain Sunmei Group announced on Monday that it had received a strategic investment from Xiaomi. Lighthouse Capital served as the exclusive financial adviser for the investment.
Founded in Qingdao, Shandong Province in 2010, Sunmei Group integrates hotel chains, home furnishings, new retail, catering and entertainment in addition to offering quick furnishing services to customers who need renovations done in a shorter period of time. Currently, the group owns over 5,500 stores, including 5,000 hotels, 200 KTVs, 30 home furnishing retail stores and 300 catering businesses. The group counts over 120 million VIPs in its membership program.
In their recent strategy conference, Sunmei Group announced their intention of “opening 30,000 hotels in 10 years, so that consumers can stay in quality hotels in any town they travel to.”
The first step in the strategic cooperation between Sunmei Group and Xiaomi is to upgrade the Thank Hotel. The Thank Hotel brand is the main hotel brand of Shangmei Group, with more than 3,000 hotels in China. According to a research report released by Qingbo Intelligence, Thank Hotel ranks first in their coverage of third-, fourth-and fifth-tier cities, with more than 120 million VIPs.
Sunmei Group is scheduled to complete a complete upgrade of Thank Hotel’s products in 2022 using modern smart technology. The improvement is to reduce costs and increase efficiency for investors which should enable the company to establish quality hotels faster, generate profit quickly, and bring consumers a better experience overall.
Jiang Wen, managing director of Xiaomi’s strategic investment department, said, “We are very optimistic about the future business development of Sunmei and the strong strategic connection with Xiaomi. We look forward to working with Sunmei to integrate Xiaomi smart rooms into small-town and rural markets.”