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Market report: Hilton in China

Hilton: the hotel empire

Hilton International Hotel Group is the branch of Hilton Group Company, whose headquarters lies in England. It has the right to use the trademark ‘Hilton’ in all countries in the world except for America. There are 261 Hilton hotels, 142 Scandic Hotels that aim at the middle class market. and 18 Conrad Hotels in 12 countries. Hilton now has over 71,000 employees in 80 countries.

The founder of Hilton hotels, Conrad N.Hilton, regards the hotel business as both a service and entertainment. To satisfy customers’ needs, Hilton Empire is full of smiles. Hilton tries to create as complete a service system as possible. Hilton not only provides board and lodging, but also amenities such as coffee rooms, conference rooms, banqueting halls, swimming pools, shopping malls, banks, mail services, flower shops, clothing stores, and travel agency services. Hilton hotels have single rooms, double rooms, suites, and presidential suites. Hilton’s rooms are very comforting and relaxing and make guests feel at home.

Hilton’s expansion in China

In 1988, Shanghai(上海) Hilton began operations. This marked the entry of Hilton into the Chinese market. In the 1990s, the development of Hilton in China lagged much behind other international hotel groups because the company chose to concentrate on its European and North American markets. In the 21st century, Hilton put more attention into its expansion in China. There are now about 30 hotels that belong to the Hilton International Hotel Group in China’s major cities such as Beijing(北京), Chongqing(重庆), Sanya(三亚), Hefei(合肥), Qingdao(青岛), Wuxi(无锡), and Xi’an(西安).

However, since year 2011, Hilton has made major adjustments in its strategy in China—to enter the market with smart luxury. According to Paul Brown, Hilton’s Global Brand and commercial services president, China will become Hilton’s second largest market, following America. By 2015, Hilton plans to have 100 new hotels in china, including Hilton’s luxury hotel brands such as Waldorf and Conrad. Both first and the second tier cities are included in Waldorf’s expansion plan. In May 2012, Hilton announced that Waldorf is going to Chengdu(成都). This is the second Waldorf in China, and the first in Western China. In the next five years, Hilton plans to add two more Waldorfs in Baoting(保亭) and Sanya(三亚) in the Hainan province. This speed of development has rarely been seen in Waldorf’s history.

Hilton in China: will development sustain?

Hilton is trying all it can to catch up with its competitors in terms of the number of hotels it operates in China. Despite this rapid growth, Hilton needs to remain attentive and avoid taking too many unnecessary risks. There are some signs that some international big hotel brands have lowered their standards in Chin, and intentionally ignored the problems in administration causing larger problems in the future. Hilton needs to ensure that it will have enough customers to generate sufficient revenue. If the operation goes do not expand as quickly as Hilton first hoped, it may struggle and hurt its brand image in the long-run.

 Daxue Consulting Market Report

Credit Photo: MSN