U.S.-based hospitality company Hilton will maintain its rapid expansion in China and invest more in the country. Hilton runs 671 hotels across China as of end-May. “We are currently the fastest-growing international hospitality company in China; one in every three hotel rooms under construction in China carries the Hilton flag. We have an ambitious growth strategy to seize key opportunities,” Jenny Milos, Vice President of Brand Management at Hilton Asia-Pacific said. Hilton has been opening hotels at a rate of 100 per year in the past five years. The company is looking to maintain this pace in the foreseeable future with initiatives focused on localization, innovation, diversity and partnership, she said. “We have full confidence in the future of the Chinese economy and we’re very excited about the future investment and development potential across China,” Milos said.
In addition to the 10 brands launched in China, the group is in the process of introducing two new brands and thinking of bringing more brands to the country to meet evolving guest needs. “We have ambitious growth plans to continue expanding in China, especially in key markets and destinations,” she said. “I think that we will continue to see us double down in the mid-scale market space for sure. Our vision overall is to have a brand and location at every price point at every stay location for every guest and be everywhere they need and want to be,” Milos added. The confidence stems from a strong Chinese economy, its hospitality market potential, and a rising middle-income group. “When we look forward to the future, we are excited about a new wave of growth across China really anchored around three things: the continued expansion of the middle-income group, rising resident incomes and the continued government structural reform and investments in high-quality initiatives,” said Milos.
The fact that China’s GDP rose by 5.3% in the first quarter, and that the accommodation and catering sector surged 7.3% during the same period show the particular demand for hospitality and travel. “As a key driver of the global tourism economy, China is Hilton’s largest market outside the United States and the fastest-growing, most promising market worldwide. We have confidence in the future of the Chinese economy, and Hilton is committed to investing in and developing the Chinese market,” Milos said.
Domestic tourism in the first three months amounted to 1.4 billion passenger trips, soaring 16.7% year-on-year, according to the Ministry of Culture and Tourism. In its 2024 trends report, Hilton said Chinese travelers are more inclined than the majority of their global counterparts to spend more on travel this year than they did in 2023, with the country’s travel policies continuing to loosen, the China Daily reports.
