Regional PRofile : China
The march into
China ’ s secondary cities continues , as evidenced by the October 2014 launch of the 360- room Wyndham
Chongqing Yuelai .
China : Then
now
it ’ s going to take a lot moRe homewoRk — and legwork — for established global players and upcoming regional and local groups to mine the sprawling opportunities of today ’ s China .
by Oriana LErnEr , COnTribuTing EdiTOr
China ’ s transition from the golden child of hotel development to a promising adolescent with some growing pains can be summed up simply . “ There ’ s no more ROE — return on ego ,” says Howard Ho , director of development for Shangri-La Hotels and Resorts ’ Hotel Jen . “ Owners are taking a much closer look at the profitability of hotels .”
The maturation of hotels from status symbols to profit centers is one of the key factors reshaping the development landscape in the world ’ s most populous nation . Even with access to China ’ s massive domestic and inbound travel markets , hotel companies can ’ t rely on numbers alone to make projects pencil out . “ The hotel investment market is mainly driven by the real estate market ,” says Daniel Voellm , managing partner , HVS Asia Pacific . “ For the time being it will likely remain slower than in previous years . Once the new supply is absorbed and market fundamentals improve , more ‘ technical ’ opportunities will surface .”
That hasn ’ t taken China off hoteliers ’ wish list for international expansion , but it has rewritten the rules . “ More diversified , marketdriven and personalized products will become popular ,” says Julie Dai , director , Horwath HTL .
Trending projects Expect luxury to stay on the radar ,
30 HOTELS May 2015 www . hotelsmag . com