A lot of hotels with huge reputation set foot in China, like IHG, Marriott, Hilton, Kempinski and so on, the international hotels put a lot of investment on building new ones in China.
Luxury is a big focus area for the top chain hotels. It’s a US$60 billion segment that’s expected to grow by half over the next decade. So there is vast room for the development for these hotels in China.
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Just in 2016, In the quest to build scale and brand recognition, (1) Anbang Insurance Group bought Strategic Hotels & Resorts for $5.5 billion, including virtually all of Strategic’s luxury US hotels. (2) China Life Insurance forged a joint venture with a sovereign-wealth fund to buy a $2 billion portfolio of limited service hotels from Starwood Capital Group. (3) Cindat Capital Management concluded a $571 million joint venture with Hersha Hospitality Trust for seven hotels in New York City. (4) HNA Group (HNA) announced plans to purchase about 25% of Hilton Worldwide Holdings – in addition to its earlier acquisition of Carlson Hotels Inc.
Eager for foreign top hotels
Specifically there is a gap in the upper-luxury segment, which can develop or acquire brands. Either the mainstream luxury in the InterContinental brand, or boutique luxury in Kimpton or upper luxury in Regent, there are huge potentials in them.
Across all industries, China spent nearly $2 billion acquiring foreign assets last year, outpacing 2015 when they spent $61 billion on offshore international mergers and acquisitions, according to the Rhodium Group.
The location of these investments explains a lot about why so much money has flowed out of China in recent years. They went mainly into mature markets in the US and Europe and into safe sectors like established hotel brands. This suggests that Chinese companies are interested in protecting themselves against domestic market risks, including the devaluation of the Yuan that has fallen 10.5% against the dollar.
Another contributing factor is the vibrancy of the outbound Chinese travel market on which the Chinese hotel companies want to capitalize. Last year, more than 100 million Chinese tourists visited global gateway cities like New York, London, Paris, Tokyo and Sydney, thanks in part to cheaper airfares and more frequent flight schedules. This volume is expected to grow at an annual rate of 8.5% through 2021.
They contacted GMA for helping them to help Marriot world wide Hotel to get visibility in China and we worked on the Ereputation.
- Hotels Ereputation
- SEO on Baidu
IHG reaped wealth and reputation in China
More and more top chain hotels value the market in China due to the huge demand in China, especially for more premium, upscale brands globally, such as IHG.
In the first quarter alone IHG opened 11 hotels with 3,000 rooms, on top of 43 hotels that opened in 2017, an annual record for the group. Since 2011, when the company established Greater China as a standalone region for its business, IHG has opened 62,000 rooms there, and increased fee revenues by 70 per cent. With a further 75,000 hotel rooms in the pipeline, China will soon account for a third of the group’s global portfolio.
Hotels are always closely associated with tourism. IHG notices Chinese people are willing to have a tour to cities or spots in western China that boast distinctive natural beauty and cultural heritage, and thus it signed another ten hotels in Sichuan, Chongqing, Shaanxi, Yunnan, Gansu, Guizhou this year.
These strategies are paid off well. Having signed management contracts with 33 hotels in the first quarter, IHG on Tuesday signed another ten hotels in Sichuan, Chongqing, Shaanxi, Yunnan, Gansu, Guizhou, areas of western China that boast distinctive natural beauty and cultural heritage.
Plus IHG deserves to invest in China in a larger scale. In the first quarter, revenue per available room(RevPAR), a key metric gauging hotel performance, increased 11 per cent in Greater China – 10 per cent in the mainland and 15 per cent in Hong Kong, well ahead of the 3.5 per cent increase worldwide.
The Branding is the Key for top chain hotels
Even though it is lubricate for these foreign top chain hotels to establish more and more new hotels in China, at the same time they will bear the risks. This means they have to do a great job for branding because Chinese people mostly trust brands than anything else.
Branding and reputation are the crucial reason to achieve the success. Lack of branding and reputation can straightly lead to depress the room rates.
Hotel de Castiglione 4 stars in the heart of the Faubourg Saint–Honoré in Paris, famous for its designer boutiques. This luxurious hotel in an Art Deco-style building is closed to the Champs-Elysées and the Palais Garnier.
Hotel Casteglione understood how important Wechat is for a marketing in China.
- WeChat H5 Ebrochure
How to develop branding for your hotel in China
PR. We recommend PR solution, the power of Chinese online media. It is cost effectively and really can get lubricant result. The power of PR is also about e-reputation for the hotel brands.
Wechat. Due to the huge registered user base, WeChat is the perfect platform for the hotel brands. You can use WeChat mini programs or WeChat stores for the start. It is a good way to acquire lots of Chinese followers and fame.
SEO. The reputation of your hotel brand will genuinely arise if you make sure your hotel can rank at the top when people search any information about hotels. Because the key to sell online is to have a good image and to be reputable, We recommend to use digital tools including: Baidu SEO and SEM, E-PR, Media Buying (DSP) & Community Management. Then, we’ll manage the campaign and assure its optimization & success.
Website. It is essential to have a quality site and be easy to be found on Baidu. Chinese people use Baidu to do the initial research frequently, so it will get more chances to raise your hotel’s fame. And establishing a Chinese website will be better for e-reputation.
Influencers: To gain in visibility and e-reputation, it is crucial to encourage a positive word-of-mouth, which influencers can be really handy. A good influencer can attract millions of fans for your hotel brand. In these fans’ mind, if the influencer can trust the brand completely, then it will give more faith in fans’ minds.
If you are interested to develop your branding, GMA can help you with the reputation and marketing. We have worked with various top chain hotels like IHG, Marriott, Hilton, Kempinski. Do not hesitate to contact us for more information.