(Yicai Global) April 12 -- Themed accommodation operator Film Hotel has secured CNY100 million (USD16 million) in A-round funding as it looks to franchise out and set up 200 more of its unique establishments.
IDG Capital led the round with support from Buhuo Ventures and the startup’s founding team, which chipped in CNY30 million, online news portal QQ Tech reported. The firm’s unique model involves renovating budget hotels with a cinematic theme: placing 133-inch screens and 3D surround sound in rooms, decorating with sculptures from famous flicks and cladding service staff in costume. The venues also host themed parties and conferences to add value to the hotel experience.
Film Hotel has more than a dozen locations running at an average occupancy of over 95 percent and garnering more repeat custom than typical budget hotels, said founder and experienced hotelier Jia Chao. At an average rate of CNY400 (USD64) to CNY900 a night, a single hotel can pull in around CNY10 million a year in revenue at a 40- to 50-percent margin, breaking even in about one year, he added.
Fifty of the new hotels will be directly owned and the remainder franchised, Jia continued, saying the first licensee for each new city will be able to operate without paying franchise fees.
Copy-edited by James Boynton