Hilton to expand Chinese footprint following major deal

by | 08 Jul 2020 | Chains

Hilton and Country Garden announced a wide-ranging strategic partnership in May 2018 (© 2020 Hilton)

Hospitality giant Hilton Worldwide has signed an agreement with Country Garden to introduce and develop the Home2 Suites by Hilton brand in China.

Hilton has signed an exclusive management agreement with Funyard Hotel Investment (Asia), a subsidiary of Country Garden, that will help ramp up its presence in China’s extended-stay market. We find out more about this important move for the Virginia-based business.

Targeting a new market

With the rise of China’s middle class, the demand for rooms in the upper midscale hotel segment has been rising by more than 10% annually over the past five years, according to Hilton. As consumer spending increases even in smaller cities outside China’s major hubs, brands such as Home2 Suites by Hilton would seem to be perfectly suited to catering to these customers.

“As our second largest market globally, China has consistently seen rapid growth and is forecast to become the world’s largest lodging market,” said Alan Watts, president, Asia Pacific, Hilton.

“We know from our success with several existing properties that Country Garden is one of the strongest players in the Chinese property market. We are thrilled to continue working with them to introduce a new Hilton brand to China and realise our shared vision to build more than 1,000 Home2 Suites by Hilton together.”

Taking the Home2 Suites success story to China

Home2 Suites is one of Hilton’s fastest-growing brands and has won numerous awards. 400 hotels currently run under its name in the US and Canada and another 450 are in the pipeline.

Hilton now hopes it can repeat the Home2 Suites success story in China by working with strong local partners and filling the gap in the rapidly developing midscale segment.

“We are excited to continuously explore new opportunities with Hilton, one of the world’s leading hospitality brands and a storied company with over a century of history,” said Ji Hongjun, president, Funyard. “China’s massive infrastructure development will further drive demand for products like Home2 Suites by Hilton and we look forward to working together to address the fast-growing demand for midscale hotels against the backdrop of this region’s increasing urbanisation.”

Diversifying Hilton’s offering

By introducing Home2 Suites into China, Hilton aims to diversify its offering and enhance its portfolio in the country. In particular, families travelling with children or parents as well as business travellers seeking reasonably priced long-term stay options may find the Home2 Suites’ offering extremely attractive.

“We are delighted to have continually strengthened our cooperation with Country Garden over the years, with six Country Garden-owned hotels now operating or in the pipeline that are currently managed by Hilton. As one of the largest real estate developers in China, Country Garden’s extensive legacy makes them well-equipped to operate expeditiously in the Chinese market,” said Qian Jin, area president, Greater China and Mongolia, Hilton.

“In light of the current climate, we expect domestic tourism to be a key pillar of China’s economy and hospitality market. Home2 Suites by Hilton aims to provide consumers with a well-trusted product that is market-relevant at a great value and we look forward to working with Country Garden to bring that to our consumers.”

Let’s take a look at the TOPHOTELCONSTRUCTION database and some Hilton projects in China:

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Hilton Worldwide is a leading global hospitality company with a portfolio of brands spanning more than 6,000 properties around the world.

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