Potential Market for the Hotel Business in China

Thursday, 28 April 2016 16:52

Although the current Chinese economy is not very good, we find the hotel industry is stilled attracted the foreign investment. Hilton recently set up the second JV hotel as Hampton Hotels with the local hotel brand as Plateno in Zhujiang City, Guangzhou Province. The first one was set up in Sanya City, Hainan Province last year and had good room occupancy. In the future 10 to 15 years, Hilton and Plateno plan to set up around 400-500 Hampton hotels in China.

In recent years, foreign hotel group had a rapid expansion in China. In Guangzhou, W Hotel, Four Seasons Hotels, The Ritz Carlton Hotel, and many other foreign brands, have entered the Zhujiang CBD and had a fierce completion with the local hotel brand as White Swan Hotel, Garden Hotel.

Whilst, more and more foreign hotel groups had the cooperation with Chinese local hotels for the purpose to entering into the middle end market in China.

Marriott also started to introduce its medium brand “Fairfield by Marriott” into China and authorized China Dongchen Group to develop and manage it.

Accor Hotel also entrusted China Huazhu Hotel to operate its middle class brand under Mercure and Novotel.

Dongjin comments: the cooperation between the foreign hotels with the local hotels can make a better solution in Chinese hotel industry for attracting more Chinese customers. With the raise of Chinese Middle class people, there is the big potential market for the foreign invested middle hotel industry.


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