Big-name hotels begin to branch out in China

November 5, 2014 Mark Dauner

In one of the biggest announcements in the hotel industry this year, Hilton Hotels and Resorts has recently gone public in regard to a partnership they’ve formed with Plateno Hotels Group, one of the leading hospitality groups in China. The agreement is to begin establishing a new Hampton by Hilton brand in China, and there are currently plans to start building at least 400 hotels, with the first resort expected to open to the public by the end of 2015.

Hampton by Hilton currently possesses more than 2,000 hotels in 17 countries around the globe, and the collaboration is with Plateno Hotels Group, which currently controls more than 3,000 hotels across 300 cities in China. This partnership is seen as a move that could help increase international travel and bring more U.S. tourism to China. In addition to boosting foreign traveler numbers, China is currently experiencing an increasing need for more mid-tier hotels, typically around the three-star rating range. Hampton by Hilton resorts will provide China with a more recognized brand name that combines affordability with various luxury amenities.

Further developments
This isn’t the only big news that Hilton Worldwide has disclosed in terms of their developments in China. On Nov. 1, 2014, Hilton Worldwide announced DoubleTree by Hilton Qinghai-Golmud. The 112-room hotel is the first internationally branded hotel in the Chinese city of Golmud, and is expected to become a more alluring resort option for incoming tourists staying in the area.

Other big-name hotel chains are also starting to take an interest in developing more properties in China. Carlson Rezidor, one of the leading international hotel chains known for their ownership of Radisson and Country Inn & Suites hotels, announced last month of its plans to initiate an Asia Pacific launch of its new Radisson Red hotel brand in the Hunnan district of northeast China. This region will be the first ever location for a Radisson Red hotel, and the development is also part of a  twin hotel deal that will also include new construction of Radisson Blu hotels within the district.

Finally, the Jumeirah Group, an international luxury hotel chain based out of Dubai, has also recently reported their intentions of building three new ritzy resorts across China. This includes the Jumeirah Haikou Resort, which includes amenities such as an exclusive golf community that’s situated on its own private island in Hainan, and is expected to be open in 2018.

Boosting US tourism in China
What’s intriguing to note is that all of these recent hotel announcements and developments have been delivered not long after the 7th Annual China-U.S. Tourism Leadership Summit took place in Chicago from Oct. 9 -10. The meeting brought together some of the biggest names of both the Chinese and American tourism industries, including Shao Qiwei, the director of the China National Tourism Administration, and Chris Thompson, president and CEO of Brand USA, a company devoted to promoting more international travel to the U.S.

The summit was an attempt to brainstorm how to boost tourism numbers between travelers from both countries, and laid out specific goals each party had in mind, including increasing direct flights between both countries, making visa access more accommodating and establishing better communication between U.S. and Chinese travel agencies.

The China-U.S. Tourism Leadership Summit reported that approximately $9.8 billion was spent by Chinese tourists in the U.S. last year, while American tourists spent an estimated $6.3 billion during their travels to China in 2013. Both of these figures are expected to rise in the forthcoming years, signaling a progressing and prosperous relationship between both countries’ tourism industries.

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