Hilton Continues Its Big Bet On China

As most of the world continues with Covid-related travel bans, China is returning to normal and its domestic travel industry is rebounding quickly. This reality, along with demographic and economic predictions has confirmed Hilton’s big bet on China. They clearly see it as a huge market now and in the future.

 Hilton recently confirmed that it will maintain robust development in the post-pandemic era, reinforce its strategic presence in South China, and drive further expansion in the region, as it steadily advances towards its goal of 1,000 operating hotels in China by 2025.

South China has always been a key business development region for Hilton, and as of today, we have nine Hilton brands operating or in pipeline here. The region boasts abundant tourism resources and attractive destinations, along with a dynamic economy, impressive growth, and a strong demand for business travel. Furthermore, the Guangdong-Hong Kong-Macao Greater Bay Area plays a strong role in China’s economic development and opening up, and has huge potential for further growth,” said John Burger, Vice President of Operations, Hilton Greater China & Mongolia (GCM) South. “All functions of the Hilton China South headquarters will be further strengthened after the relocation, thus laying a solid foundation for Hilton to achieve its 2025 goals.”

Growing to 1,000 properties in five more years is an ambitious plan, but one driven by fundamentals.

“Along with the relocation of the group headquarters, the Hilton Garden Inn Greater China headquarters has also moved to the new location in Shenzhen. With the resumption of business travel and gradual economic recovery, hotel brands that can meet growing demands for consumption upgrades while also having a strong risk resistance capacity – such as Hilton Garden Inn – have won favor with owners and guests,” said Li Xianfeng, Vice President of Select Service Brands, Hilton Greater China and Mongolia. “Hilton Garden Inn currently boasts 22 operating hotels and over 70 hotels in the pipeline across Greater China as of the third quarter of 2020, averaging four additions to the portfolio per month in 2020. The relocation will help us develop closer ties to a market with enormous potential for continued development.”

Located in the heart of the Guangdong-Hong Kong-Macao Greater Bay Area, Shenzhen provides travellers with robust transportation options including civil aviation, high-speed rail, waterway, and subway. As the first global hospitality company to establish regional headquarters in Shenzhen, Hilton chose the municipality for its excellent location, convenient transportation, vibrant economy, and incredible reach both at home and abroad.

The New South Center, located in Nanshan District, Shenzhen City, will oversee approximately 50 operating hotels in the south area of China. This includes Waldorf Astroria, Conrad Hotels & Resorts, Hilton Hotels & Resorts, DoubleTree by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Hilton Garden Inn, Home2 Suites by Hilton, and Hampton by Hilton, as well as more than thirteen new hotels expected to open by the end of this year.

In 2017, Hilton announced its China strategy to have 1,000 operating hotels in Greater China by 2025. Despite the impact of the coronavirus pandemic, Hilton has gradually restored and further developed its business at a steady pace in 2020. In June, Hilton signed an exclusive management license agreement with Funyard Hotel Investment (Asia) Limited, a subsidiary of Country Garden, to introduce and develop more than 1,000 Home2 Suites by Hilton properties across Mainland China. Deals of this magnitude are extremely rare in the industry, and this landmark partnership is slated to pave the way for the industry’s return to growth.

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