Tycoon: I Have an Unlimited Modifier

Su Kai’s tone shifted. ”But I hope to add a small clause. If Spicy King proceeds with a Series B funding round, Sequoia should have the right of first refusal for investment.”

”That’s not a problem. I can agree to that on behalf of Chairman Qi.”

Yuan Li didn’t mind a small right of first refusal.

It also showed that Su Kai and Sequoia were very optimistic about Spicy King.

”Then here’s to a successful partnership, and to Spicy King surpassing Haidilao soon!”

Su Kai smiled and extended his hand, voicing his expectations for Spicy King to Yuan Li.

”Haidilao?”

Yuan Li gave a faint smile. ”It’s only a matter of time.”

From the very beginning, Yuan Li had never considered Haidilao a true competitor.

’In terms of revenue per square meter, how could Haidilao possibly compare to Spicy King?’

”Haha, I admire your sharp attitude. President He and I are definitely going to make a fortune on this investment.”

Su Kai was taken aback for a moment. He hadn’t expected Yuan Li to be so audacious.

It had to be said, Yuan Li’s audacity was indeed backed by substance.

He thought of the 20 Spicy King locations in the Southwest Region that were about to open.

This would be an excellent opportunity to test Spicy King’s true mettle.

Even if their revenue was only one-fifth of the Taikoo Li flagship store’s and their monthly net profit could stay at one million, Su Kai was confident he could persuade President Shen, the head of Sequoia China.

He would convince him to give Spicy King a 5 billion US dollar valuation, completely beating back any other competitors.

A mere 2% stake was naturally not enough to satisfy a top-tier venture capital firm like Sequoia.

As the two venture capital firms signed the share purchase agreements one after another, Spicy King shot to fame overnight, becoming the new darling of the restaurant industry.

At the same time, with 30 million US dollars from Black Ant Capital, Spicy King now had the backing for another wild surge of expansion.

The Banyan Tree Group officially announced that all properties under its Banyan Tree Hotels and Resorts banner, with the exception of the core Banyan Tree brand, would host Spicy King branches.

Although there weren’t many hotels in the Banyan Tree Series in China, it was undoubtedly a huge boost for the newly established Spicy King.

Many of the venture capitalists who had been hesitating and watching from the sidelines could no longer sit still.

They started contacting Yuan Li one after another, wanting to get on board early.

But as far as Yuan Li was concerned, Spicy King wasn’t short on cash at all right now.

The most urgent task was still site selection and renovation, to get the other branches open as soon as possible.

’Time to use our outstanding performance to shock the hell out of these hesitant VC dogs.’

...

While Yuan Li was working hard and rushing about for her grand ambitions, Qi Sheng was leisurely taking the three little ones to Sanya.

The road trip was quite pleasant.

Along the way, they ran into quite a few fellow road-trippers.

The multi-million-yuan Cullinan still left many people stunned.

Especially when they stopped at service areas, the car would often be surrounded by a crowd of people taking pictures.

”Wow, Big Brother, the ocean is so beautiful!”

After parking the car on the ferry, Qi Sheng and the three little ones got out.

The fatigue from the journey dissipated as the slightly salty sea breeze washed over their faces.

”I’ll buy a yacht someday, and then our whole big family can go out on the ocean.”

Qi Sheng looked at the somewhat grimy ferry; it definitely couldn’t compare to the luxury yachts you’d find online.

When they reached the dock, Qi Sheng drove the car off the ferry.

With the three little ones in tow, he headed straight for the Banyan Tree Hotel in Sanya.

Among all the Banyan Tree hotels in China, the one in Sanya was probably second only to the one in Shanghai, highly esteemed by many Banyan Tree fans.

The Banyan Tree in Lovers’ Bay, at the foot of Lu Huitou Mountain, was the first all-pool-villa resort in China.

Upon seeing Qi Sheng’s Cullinan, a hotel doorman sprinted over as if running a 100-meter dash.

He eagerly pulled open the car door for them.

”Welcome, boss.”

Qi Sheng was in a good mood and smiled at the doorman.

”Boss, I’ve already notified President Ni for you. Please wait just a moment.”

The doorman, seeing Qi Sheng’s smile, immediately and excitedly reported.

”Mm, no rush.”

Qi Sheng knew that this bunch of hotel general managers were all eager to score points with him.

While waiting for President Ni to arrive, Qi Sheng and the three little ones looked around the hotel with great interest.

The 49 pool villas, adjacent to a tropical lagoon, were nestled within 130,000 square meters of tropical gardens.

Although there was no particularly outstanding design, the tropical-style architecture, coupled with the palm trees swaying in the breeze, helped one’s mood lighten up.

”Boss, I’m sorry to have kept you waiting.”

A middle-aged woman in a white pantsuit, with a neat, medium-short haircut, walked over quickly in high heels.

”You’re Ni Fang?”

Qi Sheng smiled and shook her hand.

”I’ve seen your file. You were previously an assistant executive manager at the Banyan Tree hotels in Ren’an and Shangri-La.”

”You’ve been managing the Sanya Banyan Tree quite well.”

”You’re too kind. To be honest, I’m ashamed to say the owner of our hotel has never been very satisfied with our performance. Recently, they’ve even been thinking of putting the entire property, including the hotel, up for sale.”

Ni Fang had also heard about the recent changes within the group.

This new big boss was clearly a man of decisive and swift action.

First, he halted the Meibei Lake project in Xi’an and announced the withdrawal of the Banyan Tree brand.

Then he dispatched Wang Huazhang to scout the Great Wild Goose Pagoda scenic area to find a new location for a hotel.

In Hangzhou, he made a huge move, spending 680 million to acquire the Sofitel West Lake Hotel.

And he was preparing to spend an additional 320 million on a complete renovation.

Spending a billion in total was clearly no small amount of pressure for the Banyan Tree Group, which had always operated on an asset-light model. It would nearly empty the group’s coffers.

But it had to be said, this series of moves by Qi Sheng had greatly boosted the morale and pride of everyone in the group, from top to bottom.

Under the He Clan, the former Banyan Tree Group had been somewhat conservative.

Only the Banyan Tree brand itself could barely hold its own against other luxury hotel brands.

After Qi Sheng took over, the latest brand positioning for the group had left professional managers like her secretly shocked.

A price hike across the board was somewhat unfriendly to fans of the Banyan Tree Series.

But it was indeed a significant boost to the Banyan Tree brand’s value.

”How long until our operating management contract with the Shouliu Group expires?”

Qi Sheng watched the three little ones chattering away in excitement and couldn’t help but smile along with them.

”It was a 15-year contract. We started operating and managing it in ’08, so it expires in April of ’23.”

Ni Fang aired her grievances with a wronged tone, ”Boss, it’s truly not that my staff and I aren’t dedicated. It’s that the Shouliu Group’s appetite is too big.”

”Our hotel is part of the first phase of the project. It covers a total of 100 mu, and our business has always been profitable.”

”But the Shouliu Group has been hoarding the land for phase two, sitting on it for over a decade without developing it.”

”Now the authorities have established a 200-meter marine protection line, and that parcel of land is going to be directly expropriated by the local government.”

”They can’t handle the pressure anymore, which is why they’re planning to sell the hotel and the land together as a package deal.”

Qi Sheng nodded in understanding. No wonder the other party was so anxious.

’They originally planned to hoard the land and wait for property values to keep rising. And now, the local government is just going to reclaim it. The cost of capital alone is enough to give the Shouliu Group a major headache.’

Qi Sheng asked casually, ”How much was the initial investment for the phase one land and hotel?”

Ni Fang answered without even thinking, ”The total investment for phase one was 750 million, including over 100 mu of land.”

”Our hotel’s annual revenue is 40 million, with rooms accounting for 70% and food & beverage, wellness spas, and other income making up the other 30%.”

”The average room rate is 4,500 yuan, and the average occupancy rate is only 34%.”

After she finished speaking, Ni Fang was a bit too embarrassed to look at Qi Sheng.

’That performance was, frankly, a bit shameful.’

”The occupancy rate is acceptable, but the revenue is lower than the Banyan Tree at Xixi Wetland.”

Qi Sheng frowned slightly but didn’t criticize Ni Fang too harshly.

”As you know, a hotel should generally undergo renovation and remodeling every 10 years or so.”

”Given the Shouliu Group’s situation, it’s impossible for them to spend another cent.”

”Our hotel’s hardware and facilities are all aging.”

”And every year, new five-star hotels open in Sanya, siphoning off a lot of our customers.”

Ni Fang was indeed very frustrated.

When she first took the position, she too was ambitious and wanted to achieve great things.

But the Shouliu Group’s constant lack of cooperation was a major blow to her management of the hotel.

The He Clan was notoriously stingy and would never have just thrown extra money at the group for no reason.

”Only 600 million?”

Qi Sheng glanced at the mandatory acquisition price shown by the system.

For just 600 million, he could acquire the 100-plus mu of land and the hotel property.

He certainly didn’t have that kind of money right now, but that didn’t mean he wouldn’t have it in the future.

’I’ll set a small goal for now.’

’Once I have the money, I’ll acquire the entire first phase as a package and tell Shouliu to get lost.’