Hilton still keen to expand in China

The Chinese market is growing at an unprecedented pace for hospitality giant Hilton Worldwide Holdings, becoming the most important strategic market for the group outside of the United States.

Globally, Hilton has more than 4,300 hotels with more than 1,300 other hotels under construction. In China, 54 hotels have been established and more than 170 properties are in the process of being built, said Martin Rinck, Asia-Pacific president of Hilton Worldwide.

In addition to the world's top luxury hotel brand Waldorf Astoria, Hilton has already introduced into China its Conrad, Hilton Hotels & Resorts, DoubleTree by Hilton, and Hilton Garden Inn brands. In October of last year, it launched the Hampton by Hilton brand in partnership with Plateno Hotels Group, which is known predominantly for the budget hotel chain 7 Days Inn.

At the end of April, Hilton launched the Embassy by Hilton brand in China, its seventh brand in the country.

"Considering the fact that we are a hotel company that has 12 different hotel brands, we still have five brands up our sleeves to launch if and when we consider it's the right time," Rinck said.

Hilton has many newly opened properties that are still ramping up in performance, putting the company's performance north of GDP growth in China in high single digits.

The launch of Embassy by Hilton, which already has 220 properties in the US, has been planned for the last two years.

Before Hilton launches a brand in a market, they not only ensure the demand is there to support new supply in a particular category, but they also adjust and repurpose the brand to make it locally relevant, Rinck said.

Hilton also upgrades its properties and renovates their facilities on a regular basis in China.

"When we renovate, we also reassess the facility schedule - what we offer in terms of product for our consumers," Rinck said.

Some key drivers currently are larger communal areas and spaces that are interactive, he said. When it comes to areas such as lobbies or restaurants, everything flows with high technology enabling mobility.

"Mobile Room Select" is available for 4,300 Hilton hotels around the world, digital check-ins are enabled at every property and straight-to-room technology, which allows guest to use mobile phones as room keys is being piloted in many of its properties in the US before being rolled out elsewhere.

The central government's crackdown on extravagance and corruption has had little impact on Hilton's business.

"We represent the hospitality industry, so that doesn't mean that we only cater to government business. We have a lot of customers who are nongovernmental bodies and such," Rinck said.

"We are now at a point at the end of the tunnel where a new normal, a new reality has set in and we're seeing growth again. I think what happened with what you call a crackdown was finding the true north, and centering everything around what the new norm will be."

shijing@chinadaily.com.cn

(China Daily 07/04/2015 page10)