Big picture of midscale ambitions

Eastern Crown links up with Marriott International to introduce Fairfield brand in China

Marriott International Inc and Eastern Crown Hotels group, one of China's fastest growing lodging groups, signed an exclusive development agreement on Wednesday to bring the Fairfield by Marriott brand to the Chinese mainland.

The agreement targets having 140 hotels signed in five years, with 100 opened by 2021.

The introduction of the Fairfield brand is a significant milestone in Marriott International's expansion into the midscale hotel segment in China, and is part of the company's strategic plan to expand rapidly across a broad spectrum of price tiers and locations across the country. The company currently has more than 80 hotels operating in China with a presence in 25 cities.

"China is the fastest-growing market in Asia for us. The rising disposable incomes of the middle class and development of a consumption-led economy is driving an increased demand for higher quality mid-range accommodation," said Craig S. Smith, president and managing director of Marriott International Asia Pacific, at the signing ceremony.

The Fairfield brand was inspired by the Fairfield Manor House at the Marriott Family Ranch in Virginia and is designed to live up to its heritage of providing a warm welcome and great service.

With a focus on young consumers and business travelers, the Fairfield hotels in China will be characterized by a contemporary American style, and each hotel will feature the brand's signature functions, including smart and flexible public spaces, spacious guest rooms, and comfortable workspaces. Each Fairfield hotel will offer between 100 to 150 rooms.

Fairfield is a global leader in the mid-tier hotel segment, and is Marriott International's second-largest distributed brand with more than 750 hotels worldwide. It will be the 10th brand in the Marriott International portfolio to be introduced on the Chinese mainland, joining six opened hotel brands - The Ritz-Carlton, JW Marriott, Marriott Hotels, Renaissance, Courtyard, Marriott Executive Apartments - and three signed new brands - Autograph Collection Hotels, Edition, and Bvlgari Hotels and Resorts.

"Due to the fast-growing global demand for quality mid-tier hotels, Fairfield currently has the largest development pipeline within Marriott International, positioning the brand as the fastest-growing in its portfolio," said Shruti Buckley, Fairfield by Marriott vice-president and global brand manager. "This partnership with Eastern Crown is proof of the brand's strong proposition and benefit to our owners."

Eastern Crown Hotels Group is a privately held hotel group that specializes in franchising and operating select-service hotels. It currently has a portfolio of over 700 hotels either open or under development in 200 cities in China and Malaysia. According to Hotels magazine, Eastern Crown is currently ranked No 38 among international hotel groups and No 7 among Chinese hotel groups.

"Eastern Crown Hotels Group and Marriott share the same goal of creating high-quality, customer-centric products, and continuing to develop and improve the products to meet customer needs. We are delighted to work with Marriott in this segment, combining our knowledge of the Chinese consumer and Marriott's quality and expertise in China market expansion," said Cheng Xinhua, founder, president and chief executive officer of Eastern Crown Hotels Group at the signing ceremony.

Guests of Fairfield hotels in China will have the same access to Marriott's award-winning loyalty program, Marriott Rewards, as all other guests at Marriott International portfolio hotels. Eastern Crown Hotels Group has over 8 million members in its own loyalty program, who will be able to convert their points to stay at 4,200-plus Marriott properties around the world.

Marriott International is a global leading lodging company based in Bethesda, Maryland, in the United States, with more than 4,300 properties in 85 countries and territories. The company reported revenues of nearly $14 billion in fiscal year 2014.

Based in Guangzhou, Guangdong province, China Eastern Crown Hotels Group currently operates under four brands, namely City Comfort Inn, Jtour, ECharm and ECheng.

"By leveraging the market knowledge, skills and expertise of a well-established hotel group like Eastern Crown Hotels Group, Fairfield is poised to develop at an exceptional pace," said Smith. "By working together, we will bring new options for travelers at a great value within China and provide access to and familiarity with an affordable option when traveling outside China as well."

Zhao Huanyan, chief analyst at Huamei Consulting, a firm specializing in the hotel industry, and senior researcher at the Tourism Research Institute under the Shanghai Academy of Social Sciences, said in an interview with China Business News that with high-end and economy hotel markets declining, with decreasing occupancy and room rates, investors are eyeing the previously neglected market of mid-level hotels. Hotel groups, such as Hilton, Accor, Jinjiang and Huazhu, are all targeting this market now.

Zhao said, it is not easy to choose locations and expand in China. Overseas hotel groups have globally renowned brands and local hotel groups know the market and policies, so much such cooperation is likely.

zhuanti@chinadaily.com.cn

(China Daily 02/20/2016 page10)