Hilton bets big on China

As the consumption habits of Chinese citizens grow and their economy continues to boom, global hospitality giant Hilton is seeing a huge potential for growth. The American hotel chain recently announced their plan to open more than 1,000 additional properties across China over the next half decade, making it clear that they see a bright future in the world’s most populous country. From luxury properties in Shanghai to budget hotels in rural areas, read on for more details of Hilton’s massive bet on the Chinese market.

1. From Las Vegas to China: Hilton Bets Big

Hilton Hotels and Resorts have long been synonymous with luxury and style. Now, the hotel chain is investing heavily in the Chinese market in an effort to strengthen its position as a global leader and take advantage of the increasingly affluent Chinese middle class.

With its sights set on tapping into the burgeoning Chinese traveler market, Hilton is rolling out an ambitious plan to open 200,000 hotel rooms by 2025 – more than all the existing rooms in their entire global portfolio.

Hilton is placing strategic investments all over the country, ranging from luxury resorts to select service hotels to extended stay properties. This includes the opening of three luxury hotels in Macau and the recent opening of the luxurious Waldorf Astoria in Shanghai.

With its long-term investments, Hilton is hoping to tap into the immense potential of the Chinese travel market. And, by positioning itself firmly in China, the company expects that it will be well-placed to capture more of the pie as the market continues to grow in the coming years.

2. A Record Investment in Chinese Hotels

Chinese investors are making an unprecedented move, investing heavily in the nation’s hotel sector. With Chinese travelers discovering the joys of international travel and with big companies and wealthy individuals investing more in the hospitality industry, the outlook is positive for these hotel investments.

• Google’s Operators Alliance – This joint venture between Google, Huawei Technologies and the China Lodging Group is planning to open up at least 10 hotels throughout China in the next couple of years.
• New Hotel Chains – Several new hotel chains are also in the works, ranging from budget-friendly options to high-end boutique hotels. These new hotel brands offer Chinese travelers more choice when it comes to their accommodations.

Chinese investors are not only investing heavily in the construction of new hotels, but also in the restoration and renovation of existing ones. Properties such as the famous Garden Hotel in Beijing have seen a remarkable makeover in the past few years, turning it into a luxury destination.

3. Opening Up New Horizons for Hospitality Tourism

Discover Greater Possibilities

Revolutionizing the hospitality industry, modern technology is now enabling hoteliers and tourism professionals to gain unprecedented leverage and create innovative experiences that are more immersive, personalized, and tailored to their guests’ needs. Places to stay are no longer just destinations for people but a source of discoveries, with virtually every element of the establishment, from room to dining areas, built to accommodate a range of diverse needs.

Apart from upgrades in spaces and facilities, hospitality businesses are also finding exciting ways to integrate service packages that focus on providing travelers with memorable and unique travel moments. Guests now have the opportunity to access tailored activities such as cultural sightseeing and food tours, outdoor activities, educational programs, and more, all of which can be tailored domestically and abroad.

• From exceptionally crafted cuisine specific to the country of their location to activities and tours that showcase its culture
• Accommodation businesses can offer immersive experiences, allowing visitors to truly experience the culture of their country
• By letting people explore unique places, from a Michelin-starred restaurant to a hidden café in a back street, there are more opportunities for travelers to discover something special

4. Charting a Course for Global Expansion

As businesses look to expand their market share both domestically and internationally, they’ll need to plot a strategic course for global expansion. Charting the right course can have a significant impact on success, as well as the bottom line.

To start, businesses should look at the big picture. Developing a long-term business strategy that maps out the steps to global expansion is key. This strategy should include:

• Data: A thorough analysis of global market trends and macro-economic indicators.
• Markets: A careful evaluation of potential consumer markets in foreign countries.
• Resources: An assessment of the resources required to expand globally, both physical and financial.
• Risks: A clear understanding of the associated risks and the ability to mitigate them.

Once the groundwork for a global expansion strategy is laid out, businesses can focus on setting the course. They’ll need to identify the specific countries or regions to target and determine how best to access those markets, whether via a direct approach or partnering with a local provider. This means mapping out the necessary resources, process, and timeline for getting a foothold in each market. Finally, shift focus to continually measure, monitor and adjust to ensure the most successful global expansion.

The future is bright for Hilton as the company bets big on China, changing the face of the hospitality sector. With ambitious goals to triple its China presence by 2020, it’s on track to make a lasting impression on the Chinese hospitality landscape. With this strong commitment, Hilton is sure to become a household name in China in the years to come.