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W Hotels is betting China’s growing middle class–who’ve already shown a predilection for luxury items–will buy into its design-led lifestyle brand.
W Hotels is betting China’s growing middle class–who’ve already shown a predilection for luxury items–will buy into its design-led lifestyle brand. The hotel brand, which is owned by Starwood Hotels & Resorts Worldwide, opened W Guangzhou earlier this month–it’s first W Hotel in mainland China. The opening marks a rapid Asian expansion for the brand, which plans to add 10 more hotels in the region over the next five years, the company said. W Hotels has previously announced plans to open properties in Shanghai, Beijing, Changsha and Suzhou. The hotel, which was designed by architect Rocco Yim, is located in Guangzhou’s Pearl River New Town District, a center of business, entertainment and luxury shopping malls. China has been a viable market for Western hotel companies for some time. Starwood opened the first 5-star international hotel in China, the Great Wall Sheraton Hotel in Beijing, way back in 1983. These days, Western hotel companies are developing properties to accommodate international travelers and, increasingly, Chinese tourists and business people. China is one of the fastest growing tourism markets globally with hotel revenue reaching $39 billion in 2012, up 6.3 percent over five years, according to market researcher IBIS World, reported CNBC. IBIS forecast revenue will rise to $56.2 billion by 2017. Starwood has opened some 50 hotel properties under its various brands in the past two years alone. And other hotel owners are in step with Starwood’s China strategy. InterContinental Hotels Group, which owns the Holiday Inn brand, has 160 properties in the pipeline, reported CNBC. |
