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China’s share of cross-border hotel purchases will increase to 10% by 2017 from the current level of 4%, fueled in part by its domestic hotel brands going global.
China’s share of cross-border hotel purchases will increase to 10% by 2017 from the current level of 4%, fueled in part by its domestic hotel brands going global, according to a new report by British real estate advisor Savills. In line with the overall flow of overseas Chinese tourist travel, the regions most likely to benefit are the Asia-Pacific and the United Kingdom, Savills said. Maturing growth and moderating economic growth in China will also fuel the trend, it said. Chinese tourism spending has been on the rise follow three decades of the world’s best economic growth among large economics. Shares in Chinese online travel company Qunar have doubled since listing on the Nasdaq at the end last year, as have Ctrip’s — another online travel business – in the past 12 months. Among the Chinese billionaires will hotel business interests on the 2014 Forbes Billionaires List unveiled this month are Yang Huiyan of Country Garden and Wang Jianlin of the Dalian Wanda Group. Global brands such as the Hilton and Starwood have been expanding into China. "The last decade has been about Chinese developers growing rapidly and building their scale in the domestic market as China’s economic growth has maintained a torrid rate and presented many opportunities to developers,” James Macdonald, head of research in China at Savills said in a statement. “As the China market matures and economic growth moderates, many companies are looking at opportunities overseas. The best chance of succeeding is looking at where they might have a comparative advantage to their local competitors. "Tapping into the rapidly growing tourism sector is an astute way to capitalize on the quite significant trend,” he said. |
