Hotel chain plans to expand in China
By Ding Qingfen (China Daily)
Updated: 2006-06-07 10:22
WORLDHOTELS, a worldwide hotel group for independent hotels and regional
hotel brands, plans to grow its China member hotels from the existing 30 to 50
by the end of July in 2008, according to the company's Asia-Pacific
executive.
"We want quality growth in China, and our major (business
expansion) focus in the next two and a half years would be on China's secondary
cities," said Roland Jegge, vice-president of WORLDHOTELS Asia-Pacific
region.
Currently the company's Chinese member hotels are mainly located
in the nation's major cities, with six in Beijing, six in Shanghai and seven in
Hong Kong.
"We would expand to cities like Guangzhou, Xiamen and
Shenzhen," Jegge said.
Founded in 1970, WORLDHOTELS provides hospitality
services including sales, marketing and distribution to 500 member properties in
70 countries worldwide.
Throughout the Asia-Pacific, the company has 70
member hotels. China accounts for 43 per cent with 30 hotels having joined the
group since it took on its first Chinese member in 1993.
"China is our
biggest market across Asia, it's fantastic," Jegge said. "And it is also the
most rapidly growing market as well."
In 2005, hotel room bookings
through the company's central reservations system (CRS) from Greater China,
including Hong Kong, increased 20 per cent.
Unlike international hotel
groups such as Marriott and Hilton, which mainly offer hotel management
expertise and provide global networking to their local hotel partners,
WORLDHOTELS offers its Chinese member hotels more flexibility and focuses on
properties with character and distinction, Jegge said.
"They have to sign
a 20 to 30-year-long contract with Hilton or Marriott. But for those joining in
WORLDHOTELS, five or six years is OK," he said.
The firm's Chinese member
hotels can also retain their independence, while being able to make use of the
collective strength of its global sales, marketing and related
services.
"Guests get a different experience in each of our member hotels
here, but the international hotel management companies want to design
themselves, making all hotels the same around the world," he said.
"Given
its targeted niche market, the WORLDHOTELS business model should be more popular
in China, as more Chinese hotels want to be the masters of themselves," said
David Zhong, publisher with www.micechina.com.
But there are
still challenges to be faced by the group, Jegge said.
While its member
hotels enjoy a good reputation among Chinese customers such as Kunlun Hotel
Beijing, WORLDHOTELS is not yet well-known.
"We will try to provide
customers with more access to us, and help them recognize us," Jegge said. "But
quality is still more important as it can both bring us up and bring us
down."
This July, the company will kick off a quality assurance programme
among its China members, which it began last year in Europe.
(For more biz stories, please visit Industry Updates)
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