TravelNews

[Travel News]: Hotel giant seeks “innovative structure, approach” in upscale expansion

TheTourAttraction.com aims to provide the latest global travel and free travel news, travel and visa policies, and flight information. We hope to provide insights into tourism market, technology and development trends with everyone by providing the latest relevant information. Despite the raging COVID-19 epidemic in 2020, we always firmly believe that mankind will overcome the disease and the tourism market will definitely recover. TheTourAttraction.com look forward to your attention and support, and witness the development of the global tourism industry with us. Looking forward to the information TheTourAttraction.com provide can help you. We will continue to follow up and obtain the latest data, and look forward to your attention and support.

The following is the [Travel News]: Hotel giant seeks “innovative structure, approach” in upscale expansion from [ChinaTravelNews] recommended by TheTourAttraction.com:

Huazhu’s target is to reach 10,000 – 15,000 hotels in the next five years and the majority of them will still be midscale or economy hotels.

Shanghai-based hotel chain Huazhu Group is penetrating into the high-end segment through its recent joint-venture partnership with real estate company Sunac. 

“Our collaboration with Sunac is the first breakthrough of our upscale hotel segment. Up to today, we plan there will be 26 hotels signed up in this year and another 50 hotels to be signed up next year,” Huazhu chairman Mr. Qi Ji said during the latest earnings conference call.

Comparing the upscale expansion of international chains like Intercontinental, Marriott and Hilton in China, Mr. Ji said Huazhu will need to accelerate expansion and use more innovative structure and approach. 

“Take Intercontinental for example, they’ve entered the China market for more than 36 years. They have 256 hotels in operation, meaning they open seven hotels per year. Marriott opens 11 upscale hotels per year. So I think we are going to accelerate our expansion in upscale hotel segment and use some more innovative structure and approach.”

Mr. Ji said the company foresees promising growth potential in all segments including economy and midscale hotels. 

Huazhu will penetrate into lower-tier cities focusing on midscale and economy, and add more upscale hotels in the Tier 1 and Tier 2 cities. Mr. Ji revealed that the company’s target is to reach 10,000 – 15,000 hotels in the next five years and the majority of them will still be midscale or economy hotels. 

CEO Mr. Hui Jin said Huazhu will deploy a multi-brand strategy in the upscale segment as the company sees more diversified demand from various customers. 

“For example, InterCity will follow the deployment of high-speed train network in China to facilitate the transportation. And Joya represents more about the confidence, the new style of Oriental culture. So in short, there’ll be different kinds of hotels catering to different kinds of the customer need.”

Huazhu noted that its acquisition of Deutsche Hospitality accelerated the revenue contribution from the company’s midscale and upscale hotels.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button