DELUGE OF DEALS
GLOBAL UPDATE to purchase Interstate Hotels & Resorts , Arlington , Virginia . In April , HNA Group , Haikou , purchased a 20 % stake in NH Hoteles , Madrid , with a € 234 million ( US $ 307 million ) capital increase . The privately held Fosun International , Shanghai , along with AXA Private Equity , Paris , in May gave Club Méditerranée , Paris , a buyout offer estimated at € 556 million ( US $ 719 million ). “ We have the means to face shortterm uncertainties to support the development of Club Méditerranée , in particular in Asia , and consolidate its positions in Europe ,” says Jiannong Qian , Fosun ’ s business investment department general director and assistant president .
Some Mainland Chinese brands are making their first steps abroad . Leading the pack is Greenland Group , Shanghai , which in May rebranded a former Tryp hotel as the 177- room Qube Frankfurt as part of a strategic agreement with Meliá Hotels International , Palma de Mallorca , Spain . Operated by Greenland , the hotel provides customer service in Mandarin Chinese as well as Chinese food and beverage offerings and banquet and meeting arrangements . Greenland and Meliá plan to exchange further properties to give Greenland more hotels in Europe and Meliá a stronger foothold in China .
Dalian Wanda Group Chairman Wang Jianlin says his company will announce later this year a Wanda-branded luxury hotel in New York City , and it plans to build luxury Wanda hotels in up to 10 cities worldwide over the next 10 years .
In addition to its investment with Interstate , Shanghai Jin Jiang International Hotel Group Co . last year unveiled a co-branding agreement with Groupe du
Louvre , Nanterre , France , for 30 hotels , with 15 in France and 15 in China cobranded as Campanile & Jinjiang Inn hotels . The hotels in France are located in Paris , Bordeaux , Lyon , Marseille and Nice , and each hotel will display both trade names at its entrance . The hotels are equipped with Chinese language brochures and signs , telephone assistance for guests in Chinese , Chinese foods and dishes included in the breakfast buffet , green tea in guestrooms and Chinese channels on guestroom televisions .
This partnership also enables Louvre Hotels Group and Jinjiang Inn to share management experience and know-how as two Jinjiang Inn managers participated in a four-week exchange program in France .
Challenges remain Other Chinese operators are concentrating on their own market for now . “ Expansion outside China is not our priority in the near term ,” says Ida Yu , investor relations manager for China Lodging Group , Shanghai .
Chinese operators may still face a learning curve to compete in foreign countries where their brands are new to non-Chinese consumers . At the same time , Chinese consumers are becoming more familiar with Western brands that are rapidly expanding in China . “ For operators , excluding the economy segment , there is a still a learning curve in terms of management skills — particularly in the way management has learned to be more flexible and respond to demand fluctuations , be it in concept design , pricing , staffing or outsourcing ,” Voelim says . “ Chinese operators are unlikely to enter a market without any strategic leverage , be it through distribution or ownership .”
DALIAN WANDA GROUP CHAIRMAN WANG JIANLIN says his company will announce later this year a Wanda-branded luxury hotel in New York City , and it plans to build luxury Wanda hotels in up to 10 cities worldwide over the next 10 years .
World Economic Forum
DELUGE OF DEALS
The past few months have seen a number of examples of Chinese hotel companies venturing beyond Mainland China :
APRIL 2013
HNA Group , Haikou , China , purchased a 20 % stake in NH Hoteles , Madrid , with a € 234 million ( US $ 307 million ) capital increase .
MAY 2013
The privately held Fosun International , Shanghai , along with AXA Private Equity , Paris , gave Club Méditerranée , Paris , a buyout offer estimated at € 556 million ( US $ 719 million ).
Greenland Group , Shanghai , rebranded a former Tryp hotel as the 177-room Qube Frankfurt as part of a strategic agreement with Meliá Hotels International , Palma de Mallorca , Spain . Operated by Greenland , the hotel provides customer service in Mandarin Chinese as well as Chinese food and beverage offerings and banquet and meeting arrangements .
JUNE 2013
Dalian Wanda Group , Dalian , China , announced plans to invest US $ 1 billion to develop and brand a 160-room , 5-star hotel in London with Green Property .
www . hotelsmag . com September 2013 HOTELS 9