SHANGHAI—China has emerged on the forefront of the hotel development landscape in recent years, and the major chains show no signs of slowing down.
Hilton Worldwide and Starwood Hotels & Resorts Worldwide, for example, recently have solidified plans to expand their presence in China and India. In the summer of 2011, Hyatt Hotels Corporation entered the Shanghai market with the Andaz Shanghai. And just this year, Marriott International announced plans to open a record number of hotels in Asia by 2014. (The company has 27 in the China at present).
Following in the footsteps of the company's recent opening of the Renaissance Sanya Resort & Spa in June, Marriott looks to continue its momentum in China with the new Shanghai Marriott Hotel City Centre. The 720-room hotel will be the largest full-service Marriott-branded hotel in Shanghai when it opens next month. Located aside People’s Square and Park on Xi Zang Road (Middle), the hotel will be close proximity to nearby cultural, entertainment and shopping attractions.
“Shanghai is the largest city in China, and it is one of the most important markets in Asia and around the world. The Shanghai Marriott Hotel City Centre is located in the heart of Puxi, and its large size and very high quality and facilities will provide the Marriott brand with outstanding high-profile presence in this critical market,” said Henry Lee, senior VP of Greater China for Marriott.
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Shanghai hasn't always been the darling of Asia's tourism focus. Before its successful run as host to the World Expo in 2010, Shanghai struggled to compete for tourism dollars against Beijing's business and industrial offerings, and Hong Kong's easy access for both business and leisure travelers.
Now one year after the Expo, Shanghai has turned itself into an international business and tourist center. Revenue from tourism totaled 305.3 billion yuan (US$46.4 billion) in 2010, a 30% increase over the previous year, according to figures from the Shanghai Tourism Industry Development Conference. According to a report in China Daily, Shanghai is planning to spend 40 billion yuan (US$6.1 billion) throughout its five-year tourism project plan, which includes the Disneyland project in Pudong district. If all goes to plan, the city's annual tourism income is expected to reach 520 billion yuan (US$81.39 billion) by 2015, a 70% increase in tourism revenue over five years.
How does this play into hotels? Quite well, according to the World Tourism Organization, which recorded hotel transaction volume surged 59% to US$2.6 billion in Asia during the first half of 2011.
As of August 2011, there were 161,312 existing hotel rooms in Beijing, compared to more than 162,000 rooms in Shanghai, according to STR Global. Just five years ago Beijing was leading the hotel room supply with 126,789 rooms to Shanghai's 123,000 rooms.
Shanghai's average daily rate for hotel rooms decreased slightly to US$120.26 from US$120.55, year-to-date through August while Bejing saw US$98.27 through August, compared to US$88.22 through the same period in 2010.
Given these figures, it's not surprising hotels and property owners like Marriott are flocking to the country. The company is represented across mainland China and Hong Kong by 57 hotels operating under its various brands.
The Shanghai Marriott Hotel City Centre
Marriott will act as the operator of the new Shanghai hotel, owned by a subsidiary company of Agile Property Holdings Limited, a Hong Kong-listed company, which is principally engaged in property development and operation of the hotel, Lee said.
“As the operator of the hotel, Marriott intends to make the hotel a strong competitor against its competitive set in the market. As with all hotels that we operate, we will bring all the strengths of Marriott International to support this hotel—from our global sales organization and strategic partnerships, to the No. 1 online hotel reservations system and one of the strongest loyalty programs in the business,” he said.
Marriott declined to discuss initial investments and financing leading up to the opening of the hotel, saying only the hotel is a completely new building.
The 39-story glass and steel building will have 720 guestrooms and include five dining options: Chinese and Cantonese restaurant Man Ho (267 seats, including 10 private rooms); Japanese-inspired Inagiku, (129 seats, including 5 private rooms); the Shanghai City Bistro (250 seats) will include various open kitchens and is dubbed the hotel's contemporary restaurant; Java+ (37 seats), street-side outlet for coffee, pastries, and sandwiches on the go; and The Lounge, which is set under the hotel's glass atrium and serving classic afternoon tea.
Each guestroom will feature a 42-inch LCD TV, complete with MP3 and laptop connectivity, iPod docking stations and Wi-Fi. The Executive Lounge on floor 37 will give Marriott members a panoramic view of Shanghai. The hotel will have two ballrooms and seven meeting rooms, providing the latest event technology, natural daylight and sustainable meeting packages. Lee said a high-end spa will open approximately three months after the hotel's official October opening.