Hotel strategies for developing in China

2 min reading time

Published on 18/05/11 - Updated on 17/03/22

China is the next “el dorado” as Western chains are aggressively attempting to increase their market share in the Asian country. We have currently seen three different types of partnerships with Sol Meliá, Hilton, and NH Hoteles

Last February, the Spanish group Sol Meliá announced a cultural alliance with Chinese giant Jing Jiang where the two chains exchange know-how in sales, marketing and operations but no official banner changes. However, they did hint that this initiative could eventually flourish beyond the co-management agreement they have on selected properties.NH Hotels is a financial commitment in addition to a marketing initiative. The Chinese group will actually own a portion of the company and participate in the strengthening of their capital while simuntaneously allowing the Spainish group to enter the Chinese market.Yesterday, Hilton Worldwide demonstrated a different strategy in Chinese partnerships when they announced that they have signed three management agreements with New Huadu Industrial Group for a Waldorf Astoria-branded resort and a Hilton Hotels & Resorts property in Hainan and a Hilton Hotels & Resorts property in Hunan.NH hotels demonstrated a third and completely different form of partnership when they announced last 10 May that the HNA Group will become a strategic shareholder of NH Hoteles by subscribing to a 20% increase in the capital amounting €431.6M at a price of €7 per share. HNA will have two members on the Company's Board of DirectorsAll three strategies are distinct.Hilton’s results are immediate and concrete: we will actually see their banner flying between 2013 and 2014 as the three properties will add another 930 hotel rooms to Hilton Worldwide’s pipeline in China.Sol Meliá will see results in the longterm. Their partnership is centered around customer satisfaction as hotel staff will be adept in the Asian and European cultures, thus encouraging them to come back. Furthermore, their strategy does indeed take into consideration one very important aspect: Chinese tourists travelling outside their country.NH Hotels is a financial commitment in addition to a marketing initiative. The Chinese group will actually own a portion of the company and participate in the strengthening of their capital while simuntaneously allowing the Spainish group to enter the Chinese market.

Meliá Hotels International

Meliá Hotels International

Hotel Group

  • Meliá Hotels International Spain
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NH Hotel Group

NH Hotel Group

Hotel Group

  • NH Hotel Group Spain
SEE THE NOTE
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