Under the epidemic situation, the tourism industry suffered significant setbacks, with many hotels facing a double decline in occupancy rates and room rates.But there are also companies at this time contrarian expansion.Hilton today announced the alliance with the core of country garden enterprise - feng yue hotels and resorts is the Hilton Home2 Suites (Home2 Suites by Hilton) hotel brand cooperation, feng yue will be the Hilton Hilton group Home2 Suites brand is the sole strategic partner in China, solely responsible for Home2 Suites Hilton hotel brand in the Chinese market development, planning, operation and management work.
"As Hilton's second-largest market in the world, China continues to grow rapidly and is poised to become Hilton's largest hotel market in the world," said Allan Watts, President of Hilton Asia Pacific.We are very pleased to continue our long term relationship with Country Garden and introduce the Hilton Home2 Suites Hotel brand to the Chinese market."
It is reported that Home2 Suites hotel is one of Hilton's fastest growing hotel brands, positioned as a permanent hotel, the brand has about 400 hotels in the United States and Canada market, with more than 450 hotels under construction.Hilton's goal is to grow the brand to 1,000 in China over the next few decades.
Talk about the current travel market setbacks, why contrarian expansion?Qian Jin, President of Hilton Greater China, told China Business News: "Looking at the current situation, domestic tourism in China will become an important pillar of the Chinese economy and hotel market for some time to come, which brings opportunities for the Hilton Home2 Suites hotel brand.We had contact with Country Garden before the outbreak, and developing the brand is part of our strategy.In fact, the crisis is the coexistence of challenges and opportunities, some people think it is a crisis, we see more is the opportunity.The current market is also forcing us to improve the hotel market, the hotel market opportunities outweigh the challenges.
Not only Hilton, Radisson and other international brands are also actively seeking cooperation with local enterprises. Ye Shijun, vice-president of Radisson Blu's China operations, told China Business News: "Hotel occupancy dropped significantly during the epidemic, but is now recovering.Cut-price hotel rooms, which are popular during live broadcasts, can be a marketing tool, but not a long-term solution.Considering the hotel's profit margin, we still need to practice our internal skills, such as improving the quality and safety of the hotel itself and strengthening the expansion cooperation with partners."
China Business News understands that radisson is also strengthening the cooperation with local hoteliers to open new projects after it has acquired capital links with the Jinjiang department. The target market is mid-range fashion hotels, and radisson will strengthen its expansion in the Chinese market in the future.
The supply of rooms in China's mid-to-high-end hotel market has grown by more than 10% a year for the past five years, according to public records.At the same time, with the increasing consumption power of consumers in China's second - and third-tier cities, people's demand for high-quality tourism and hotel services is gradually increasing, creating opportunities for middle - and high-end hotel brands, especially mid-end hotel brands, to enter the Chinese market.
Colorful chief Zhao Huanyan knowledge experts pointed out that relatively pure high-end hotel market, in the end or partial high-end hotels in the higher rate of return on investment, relatively short back to this issue, some international hotel brand relying on local partners, can rapid expansion, although outbreaks affect the hospitality industry, but also is the 234 line market opportunities, can use relatively low cost to obtain project, and now have part of the small and medium-sized hotel projects facing financial difficulties, it is a large hotel chain enterprise incorporated this kind of project.
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