GLOBAL UPDATE : PROFILE
“ We are extremely committed to the international expansion , but we need our rebranding and domestic operational changes to be completed first . When we have this in place , then we have a strong platform to go international , and I do hope that we have some news on this by the end of this year .” – Bernold Schroeder
the brand ,” Schroeder says . “ On a more sensitive note , so many straightforward management contracts in China are sometimes so weak that a franchise makes sense . A franchise is easier to manage when you have the local DNA , which we have and gives us a competitive advantage .”
A one-off , 5-star showcase being given special status will be the Jin Jiang Hotel in the French Concession area of Shanghai . It sits on 322,917 sq ft ( 30,000 sq m ) of land over four separate buildings , and was the first Jin Jiang hotel opened in 1951 . “ So , for what Peninsula Hong Kong is for Peninsula or Raffles Singapore is for Raffles , this hotel will be our version ,” Schroder says .
The core 5-star corporate business model will reflect a more traditional approach and will be showcased in the 582-room Jin Jiang Tower , which is being renovated this year and scheduled for a 2013 opening with a rooftop restaurant . “ We have defined the scope of work and have done the RFP process for design firms ,” Schroeder says . “ We are now in a costing stage and should make a decision over the next few months .”
Inside the 5-star category will be sub-brands . Jin Jiang is launching a “ Heritage ” 5-star brand for smaller , more individual hotels in China . The Park Hotel in Shanghai is currently under renovation and will act as the Heritage flagship when it re-opens later this year . Jin Jiang has plans to similarly reposition hotels such as the Pacific Hotel or Metropole Hotel in Shanghai . “ Everything here is new-build , and the few existing heritage hotels will not be sufficient to cater to the demand ,” Schroeder says . “ While we have oversupply in many categories in Shanghai ,
this is definitely not the case for heritage hotels . Foreigners want to see the old , regional Shanghai with all its rich culture and heritage .”
Next , a new 4-star brand as yet to be named is under development . Schroeder says , ideally , it will be a hybrid name similar to the old Holiday Inn Crowne Plaza . “ Then , when you had critical mass , you just called it Crowne Plaza ,” he says .
On a slower rollout trajectory is the 3-star Marvel brand , which is debuting in Shanghai , as well . Schroeder expects to announce news on Marvel later this year .
In total this year , Jin Jiang will open 3,274 star-rate rooms in China , of which 90 % will be 5-stars , according to Schroeder .
Global player Perhaps the most compelling play Jin Jiang has ahead is growing its brands outside China . “ We are extremely committed to the international expansion , but we need our rebranding and domestic operational changes to be completed first ,” Schroeder says . “ When we have this in place , then we have a strong platform to go international , and I do hope that we have some news on this by end of this year .”
Schroeder points to the more than 50 million outbound Chinese travelers , a number that is supposed to double within a few years . “ If you look at last year ’ s autumn holidays , the so-called Golden Week , we had over two million outbound travelers who spent on average US $ 950 ,” he says . “ We have to cater to this market and have Jin Jiangbranded hotels that provide Chinese outbound travelers with a certain comfort zone when going international .”
To meet all these lofty goals , Schroeder is in the process of developing a new executive team with a strong local complement , adding that he has found the existing Jin Jiang team to be polite , smart and contemporary in its thinking .
Guestroom at the Jin Jiang Tower in Shanghai , the prototype for the corporate 5-star brand
www . hotelsmag . com June 2012 HOTELS 9