My Opinion of China Hotels

About Me Philip Wei ( 魏黎 ) Director of Sales & Marketing Crowne Plaza Resort Yalong Bay Sanya M.P.:  Intercontinental Hotels Group 9 year  Shangri-La Hotel & Resort 3 year  Gloria Regional Office 1 year  Hong Fu Hotel Xinjiang 2 year

Current Status Comparison of International Tourist Scalar Person-time: 766 million 808 million Person-time: 766 million 808 million International Tourism up by 5.5% to 808 million arrivals in 2005 International Tourism up by 5.5% to 808 million arrivals in 2005

Airlines China Europe China Airlines Lufthansa Airlines Virgin Airlines France Airlines Europe Airlines Finland Airlines Argentine Airlines Aircraft scalar of Europe market

China-Europe flights market will increase three times. In the coming four and five years, the market will have more than 600 weekly flights. Airlines have the non-stop flights and airline-airports will from the 29 increase to the 65 in By then, there will be nearly 20 European and Chinese airlines compete in the market. In the coming four and five years, approximately 120 aircrafts in flight between Europe and China. The market can see all the long-range aircraft, the number of seats ranging from 180 to 500. Competing airlines excess of the quantity and market will determine the composition of this fleet. Increasing competitive pressures will limit the growth of average size of aircraft. In China-European market, this growth will remain flat.

Do you know How many Star-rated hotels in China ? Total above 3-Star hotels in China ’ 06’ 07’

International Brand Hotels Intercontinental Hotels Group StarwoodMarriottHyattHiltonAccor Four Seasons Ritz-Carlton Ritz-Carlton Howard Johnson Days Inn Ramada

Asian Brand Hotels Shangri-La Hotel & Resort Meritus Hotels

Chinese Brand Hotels GloriaJin-jiang White Swan Garden Hotel Jinling Hotel

Key cities in China Beijing Shanghai Chengdu Guangzhou Chongqing Shenzhen NanjingXi’an Dalian Qingdao Hangzhou Cities A: Cities B: Cities C: Taipei Sanya Gansu Taiyuan Zhenzhou Changsha Guiyang Kunming Lanzhou Lasa Wuhan

Current Status Comparison of Brands hotels expansion scalars Foreign Chains ’ 05 ’ 06 ’ 08 Intercontinental Hotels Group Starwood Marriott Asian Chains Shangri-la Meritus Chinese Chains Gloria Jin-jiang

Type of cooperation  Own Hotel: Shangri-La, Gloria, Meritus  Management Hotel: IHG, Starwood, Hyatt, Accor, Marriott  Franchise Hotel: Ramada, Days Inn, Howard Johnson Howard Johnson

Charge Management Mode  Management IHG Starwood Marriott Starwood Marriott Accor Accor  FranchiseRamada  Franchise Ramada Days Inn Days Inn

Market Business Elements  FIT Business and Leisure travelers  Internet  MICE  Tour Groups High price High quality High price High qualityPrice Low price Insure volume Low price Insure volume

Human Resource Tourism school Tourism school  Understaffed Periodic training Floating employees Floating employees  Cities A 5~6 Foreign experts Cities B/ Cities C 2~5 Foreign experts Cities B/ Cities C 2~5 Foreign experts

Relation Ship Government relation Customer relation Owner relation

Potential Opportunities in China  Big city still want top brand hotel  Too much potential medium cities  Resort Destination Development  Real estate of China high-speed developing  More and more Medium hotels open continuously such as IBES, Holiday Inn Express

Face weakness  Cases:  Mar,06 Hilton remove from Shenzhen Pengnian hotel, which they just took over for 1 year  Jan,06 Hong Kong China Travel took over Hilton Nanjing  Apr,05 Hilton was compelled removed from Dalian  Sep,05 Nanjing Dingshan hotel stopped cooperate with Shangri-La  04 Crowne Plaza was compelled removed from Shijiazhuang  Higher operating costs of International Hotels;  Professional managers are strangers for the domestic market and culture;  High staff turnover and a shortage of local professional personnel;  Most of owners are impercipient about the weakness of international hotel groups management in China; Above deficiencies disturb international hotel groups expand in the Chinese market. Above deficiencies disturb international hotel groups expand in the Chinese market.

Sheraton Resort Sanya

Paradise Hotel Jiuzhaigou

Grand Hyatt Shanghai

The top brand hotel of Spain come into China 2007 in Shanghai with 600 rooms

More information of hotels in China

Thank you, Welcome to China!