Nanjing hotel sector gets fresh impetus with high speed rail approval

by | 20 Sep 2022 | Pipeline

Pictured: rendering of Andaz Hexi Nanjing.

A new rapid train line linking three provinces in China’s Yangtze River Delta could prove good news for hoteliers in one of the cities it will pass through, Jiangsu province capital Nanjing.

The cultural centre in eastern China has suffered a slight dip in its hotel project development rate over the last year, but news of the rapid rail green light could reignite the pipeline.

Economic boost

The long anticipated Shanghai – Nanjing – Hefei high-speed line has recently been given the go-ahead, after the State Council, China’s cabinet, first proposed the infrastructure project in 2013.

After nearly a decade of discussions, preliminary designs were given the go-ahead by Chinese authorities, along with a 180 billion yuan (US$26 billion) total investment, aimed at boosting closer integration of China’s largest economic circle.

Welcome boon

With Nanjing set as one of 16 stations on the line, this could bring many more national and international business travellers to the city, a welcome boon for local hotels. While there is no current timetable for completion of the rail project, global hotel chains may want to get in on the ground to have additional capacity ready for the opening.

This could reverse a recent small downwards trend in the high end hotel pipeline which the TOPHOTELPROJECTS database has recorded. A year ago, there were 46 projects under development, encompassing 9,648 keys, but our latest information shows that currently there are 44, totalling 9,246 rooms – a 4% fall in each case.

Even segmentation

High end hotel segments are fairly evenly matched in the pipeline, with 55%/24 projects in the five star luxury category, with the remaining 45%/20 projects being upscale four star entries.

After a development lull this year, with just three further projects to be delivered, the pace picks up in 2023, when at least 14 high end hotels – 32% of the current pipeline – are due to open. A further 11 follow in 2024, but the remaining 16 are either yet to be definitively scheduled or are expected in 2025 and beyond.

Diverse pipeline

There is a wide spread of international chains looking at this Chinese cultural city, but in terms of hard brands, Hilton Hotels & Resorts is currently top with three high end projects, followed by stablemate DoubleTree by Hilton, plus Marriott Hotels & Resorts, Club Med and IHG’s Hualuxe Hotels & Resorts, all on two developments.

One major hotel heading to Nanjing is the 365-key Andaz Hexi Nanjing, located atop Nanjing Metro Yuantong station. Part of the Nanjing IFC tower, the hotel will showcase panoramic cityscapes from its top floor meeting and dining space. Also housed in the skyscraper will be a shopping centre and office space. The five star boutique hotel is slated to open in Q2 2023.

River rival

Another upcoming landmark will be Mandarin Oriental Hotel Nanjing, located on the Qinhuai River. The hotel will feature 106 guestrooms and suites with views of the river and the ancient city wall. three restaurants and bars include an all-day dining option, a Chinese restaurant and a Lobby Lounge.

There will also be a range of adaptable meeting facilities, and a large ballroom that will cater to events and social functions. The onsite Spa at Mandarin Oriental will provide treatments and therapies, as well as an indoor swimming pool and fitness centre.

Many TOPHOTELNEWS articles draw on exclusive information from the TOPHOTELPROJECTS construction database. This subscription-based product includes details of thousands of hotel projects around the world, along with the key decision-makers behind them. Please note, our data may differ from records held by other organisations. Generally, the database focuses on four- and five-star schemes of significant scale; tracks projects in either the vision, pre-planning, planning, under-construction, pre-opening or newly opened phase; and covers newbuilds, extensions, refurbishments and conversions.

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