Core Viewpoint - The announcement from Junting Hotel on November 27 indicates that the company's stock will be suspended from trading starting November 28 for a maximum of three trading days due to the transfer of control from its 81-year-old founder, Wu Qiyuan [1][3]. Group 1: Company Background - Wu Qiyuan, the founder of Junting Hotel, is a veteran in the mid-to-high-end hotel sector, having established the brand in 2007 at the age of 63, focusing on business travelers [1][3]. - Wu holds a 33.93% stake in the company and has been instrumental in its growth, including its listing on the New Third Board in 2016 and the Shenzhen Stock Exchange in 2021 [3][4]. Group 2: Business Model and Expansion - Junting Hotel has maintained a high proportion of direct-operated stores, which accounted for 34% of its total by the end of 2021, significantly higher than competitors like Jinjiang and Huazhu [3][4]. - The average room price for Junting's direct-operated hotels was 367 RMB, approximately 40% higher than similar competitors from 2017 to 2021 [4][6]. - Despite the advantages of direct operation, the company faced slow expansion, with only 40 hotels by September 2020 compared to competitors with thousands of locations [4][6]. Group 3: Recent Developments and Challenges - In 2022, Junting began aggressive expansion, acquiring stakes in Junlan and Jinglan, increasing its hotel count to over 300 and planning to reach 452 hotels by the end of 2024 [4][6]. - The company has recently opened up to franchising, aiming to double its hotel count to 1,000 within three years, and has established a joint venture to facilitate this transition [7][10]. - However, as of September 2023, Junting has only opened 29 new hotels and signed 25 franchise agreements, with a significant drop in gross margin from 29.41% to 18.76% [10].