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rce and Trade Co., Ltd. ( 80%), and Yang Xueyi (20%). Since 1991, Beijing Labor Hotel has been serving a large number of domestic and overseas guests. With the growing petition over the years, the hotel has gone throught a toug time. Although it became a privateowned pany a year ago, little improvement has been made because hotel management is a highlyspecialized industry today. The primary shareholder of this hotel is known for its expertise in merce and trade. Therefore it has decided to sell the hotel to a future investor whose expertise is in hotel management. What is unique about this investment? Location, location, location. Beijing currently has the highest mercial property value in China. Located in the eastern part of Zhongguancun, Labor Hotel sits between NO. 4 and No. 5 ring roads around the city. It is neighbored by the Olympic Village, National Forrest Park, Chinese Ethnic culture park, and many institutes of China’s Academy of Science. Most of the 2008 Olympic Games, according to the 2008 Beijing Olympic Organization Committee plan, will be held in this area.Great AccessibilityThe Beijing Labor Hotel has easy access to travel and transportation. It only takes 20 minutes to drive to the Capitol International Airport. It is also adjacent to a large number of public transportation services.Land ValueThe Beijing Labor Hotel is close to the Jingchang Highway, which is the north gate to Beijing. This has boomed the already prosperous real estate development in this area and thus substantially increased the land value and this trend will continue as the 2008 Olympic games are approaching.The Advantages Can Not be Replaced and but the Disadvantages Can be ChangedAn investigation made by Horizon Research showed 3 top advantages and disadvantages of Beijing Labor Hotel. The 3 top advantages are reasonable price (50%), good location (%), and good conditions of meeting rooms (%). The good location is the unique advantage of the hotel, which can not be obtained by its petitors. The 3 top disadvantages are low overall level (%), the circumstance is not good (%), and the acmodations is not good (%). Due to the aging of the building, neither the management nor the decoration design can cater to the taste of today’s consumers. This attributes to the assessment of low overall level and notsogood acmodations, which can be changed by increasing investment and introducing advanced management. With the development of Olympic construction and the Zhongguancun Science Park construction, the surrounding environment will take a new look in next 2 to 3 years.The reasons for