OUTLOOK |
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Marriott signed an agreement with Zhong An Commercial Group , part of China New City Group , for the W Hangzhou , anticipated to open in 2031 . |
such as PwC , Ernst & Young , Exxon and Apple , moved their Asia hubs to Singapore due to the unrest and policy changes . Regulations have been updated in recent years to facilitate banking and encourage SME companies , startups and different kinds of organizations to do business .
“ Hong Kong is finding new and exciting ways to continuously drive the economy
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upwards ,” Bagaeen said . “[ It ] outperforms Shanghai and Beijing , but there ’ s one issue , which is cost .” For example , on average , he said , food is about 15 % to 20 % higher than in Shanghai . It ’ s not the cost for a customer to eat in a restaurant ; rather , the cost for the hotel operator when it comes to running the restaurant , which affects profitability . “ But Hong Kong is still the gateway for |
China and it will always have a place in the world ,” he said .
Luxury hotels ’ occupancy levels have yet to fully return to pre-pandemic levels , due , in some extent , because China was amongst the last countries to reopen after the pandemic and the demand for five-star properties is strongly driven by leisure travel . However , the last year has brought loosened visa eligibility for about a dozen countries as part of a wider strategy to bring back global holidaymakers .
“ While China as a whole is not yet at full pre-pandemic revenue and profit levels , if you look at tier-one cities , like Shanghai and Beijing , they ’ re solid ,” said Bagaeen . “ On average , they ’ re a few points below or even a few points above 2019 / 2020 levels , but second- and third-tier cities , depending on their location , are still at about 90-95 % of 2019 levels .”
Come Chinese New Year 2025 , those numbers are expected to exceed those from Chinese New Year 2019 .
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OUR PIPELINE IN THE REGION IS STRONG . WE SAW RECORD SIGNINGS IN THE FIRST HALF OF THE YEAR |
In January 2024 , Marriott International signed an agreement with Beijing North Star Company for The Ritz-Carlton Beijing , North , which is expected to open in 2026 . |
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– BART BUIRING , MANAGING |
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DIRECTOR , LUXURY , |
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GREATER CHINA , MARRIOTT |
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INTERNATIONAL |
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46 hotelsmag . com Jan / Feb 2025 |