Before the 2008 Summer Olympics, Beijing buzzed with a slew of hotel openings. Now with the event over and a global recession in full bloom, market conditions have changed drastically. Julian Tan profiles the new players facing a rocky road ahead
In June 2007, we reported on the rapid momentum in the Beijing hotel sector leading up to the 2008 Summer Games, which had hoteliers upbeat and a market brimming with the promise of a dazzling range of five-star products. But what a difference then and now makes.
While a slump in bookings was predicted – natural after any event the size of the Olympics – no one expected the current financial crisis to come crashing down like the killer waves of a tsunami and sweep away any immediate business prospects. What remains is room inventory bulging at the seams and an unfamiliar landscape that established and neophyte players are still trying to ascertain and navigate.
But the show must go on. Business Traveller recently caught up with some of the city’s hoteliers for their take on the impact the crisis is having on their day-to-day operations and strategies for surviving the trying months ahead.
“Beijing has had a very large number of rooms added, especially in the five-star market. The opening of so many new hotels has provided certain challenges with finding and training experienced staff to deliver a level of service our hotel finds acceptable and is in line with the Westin brand positioning,” says Charlie Dang, who holds two portfolios as area managing director, northern China, Starwood Hotels and Resorts and general manager, The Westin Beijing, Financial Street.
According to Dang, his 486-room hotel ran an average occupancy of 85 percent during the National Day Golden Week last October, including some days with nary a room to spare. “However, we clearly understand that business travel is slowing down (due to the recession), which will bring more challenges to the hotel industry,” he says.
Citing “service first” as the top priority in the service-oriented industry, Dang adds: “In terms of opportunity, through the 2008 Beijing Olympics the city and hotels have proven their capabilities in areas such as event management, organisation and hospitality, so more MICE (meetings, incentives, conventions and exhibitions) businesses will definitely choose Beijing as their chosen destination in 2009 and beyond.”
Also targeting the meetings and corporates sector is the China World Hotel Beijing, which offers 716 rooms and state-of-the-art facilities such as a 2,000-seat conference hall. TS Cheah, its director of sales and marketing, says: “We expect that the Olympics will boost travel to the country, particularly Beijing. We anticipate that leisure and corporate travel as well as MICE business from both international and domestic sectors will rebound now that the Games have successfully completed.
“However, in view of the global economic downturn and the additional room inventory in the marketplace, there may be a softening in overall occupancy in the city for 2009.
“The corporate and MICE segments remain the cornerstone of our business at China World Hotel, so we will continue to focus on these areas. In addition, we intend to continue to leverage on the strength of the Shangri-La brand, especially in its traditional strongholds in China and in Asia-Pacific.”
Tommy Lai, director of sales and marketing, The St Regis Beijing, is bullish, saying the industry has weathered through the 1997-98 Asian financial crisis and the flu outbreak in 2003. “To cope with every business downturn or crisis, the most important thing for us is to maintain our quality of services,” he adds. “Maintaining the high standard in difficult times certainly creates value for our customers. We continue to deliver our uncompromising and bespoke services of the St Regis standard.”
Looking forward to the near future, Donald Harrington, general manager, The Peninsula Beijing, says: “It is not really unusual particularly in Olympic venues
(such as Beijing) to have an oversupply of rooms. I think that the best will survive, the ones with the best reputation and the best location. Otherwise, the hotels will be marginalised.
“They all say that China will be the number one tourist destination in 2015, and I suspect that is what will happen.”
In the following pages, we profile several hotels that have opened in the last nine months in Beijing.
CHAOYANG
Courtyard by Marriott Beijing Northeast
About two months before the Games opened in Beijing, staff here already had a reason to pop the champagne – to celebrate the launch of the 258-room hotel. Close to the Bird’s Nest stadium in the Olympic Green, it is located 20 minutes from the China International Exhibition Center and the Beijing Capital International Airport. Rooms are furnished with marble bathrooms, 32-inch HDTVs, high-speed internet connection and IP phones. The business centre operates round the clock, as is the fitness centre with cardiovascular equipment and free weights. Also found onsite are a café, deli and lounge.
CONTACT: 101 Jingshun Road, Chaoyang District, Beijing 100102, China, tel 86 10 5907 6666, www.marriott.com
Fairmont
This futuristic-looking, 25-storey downtown hotel, which is opening its doors on February 5, houses a total of 222 guestrooms in 10 categories. In the vicinity are offices and commercial establishments (the Capital Tower, LG Building, China World Complex and Oriental Plaza), as well as landmarks such as the Forbidden City, Temple of Heaven and Tiananmen Square. Besides a gym, swimming pool and the 2,000-square-metre Willow Stream Spa, the hotel also offers five food and beverage outlets including the Lunar 8 with a strong Asian influence and a steakhouse aptly named The Cut. Business facilities include a multipurpose theatre for 200 people.
CONTACT: Yong An Dong Li, Jian Guo Men Wai Avenue, Chaoyang District, Beijing 100022, China, tel 86 10 8511 7777, www.fairmont.com/beijing
Grand Millennium
The flagship of the Millennium brand in China welcomed its first guests in April. This 521-room hotel is located within the Fortune Plaza office and residential complex in the Chaoyang business district. Room offerings are aplenty: 45sqm of space, large bathrooms with floor-to-ceiling glass windows (about half of them offer a city view), TVs with USB port and the Innfor System for Office applications and internet access (which is complimentary), and huge leather-top workdesks. Among the six F&B outlets is the CBD International Cuisine, which serves buffet breakfast and is open 24/7 for à la carte.
CONTACT: Fortune Plaza, 7 Dongsanhuan Middle Road, Chaoyang District, Beijing 100020, China, tel 86 10 8587 6888, www.grandmillenniumbeijing.com
InterContinental Beijing Beichen
Since July, guests of the InterContinental Beijing Beichen have benefited not only from its premier address being situated in the Chaoyang District, but also a host of facilities. It offers 337 rooms on 16 floors, ranging from 43sqm to 314sqm; 1,600sqm of function space including six meeting rooms, the largest of which can host 1,000 for receptions; and three dining outlets (Chinese, Italian and a café) and a lounge. Other leisure options are a spa and a round-the-clock fitness centre. Guests can also keep abreast of the “outside world” through the internet, wirelessly in the lobby, at the poolside or by the lounge.
CONTACT: 8 Beichen West Road, Chaoyang District, Beijing 100105, China, tel 86 10 8437 1188, www.intercontinental.com
Renaissance Beijing Capital Hotel
Part of the Fuli City Complex with a mall and office towers, this hotel has the Shuangjing subway station under it, which connects to the rest of the city. The interiors, designed by Hirsch Bedner Associates, are contemporary and stylish (of course). It has 542 guestrooms including 48 suites, with amenities such as a 42-inch flatscreen TV with a state-of-the-art connectivity panel for connecting to laptop, iPod and audio player, dual-line IP phones, coffeemaker and separate bath and rainforest shower. There is a Quan Spa and over 2,300sqm of space caters for banquets and functions.
CONTACT: 61 Dongsanhuan Middle Road, Chaoyang District, Beijing 100022, China, tel 86 10 5863 8665, www.renaissancehotels.com/bjsbc
Westin Beijing Chaoyang
This 550-room property, which opened in June, is the second Westin in Beijing, with a prime location to boot (the Liang Ma Qiao subway station at the doorstep and embassies and offices residing in the area). Rooms are between 40sqm and 320sqm and offer the four signature features – the Heavenly Bed, rain shower, technology support and a refreshment centre. Guests also enjoy a variety of options for dining and after-hours relaxation – there are eight. The gym, the spa, a 25-metre pool with natural daylight, a Jacuzzi and separate saunas occupy the entire fifth floor, measuring 2,000sqm. Business entertaining can be done in a 720-square-metre ballroom for 600 seats and small meeting rooms.
CONTACT: 1 Xinyuan Nan Road, Chaoyang District, Beijing 100027, China, tel 86 10 5922 8888, www.westin.com/chaoyang
Dongcheng
Beijing Marriott Hotel City Wall
Things just get bigger – the room count, that is. This hotel has 1,312 rooms and is the largest Marriott property outside of the US. Staff will be happy to inform you that the hotel is built on the Ming Dynasty City Wall Relics Park – the city wall was first constructed in 1419, and the relics were turned into a public park only in 2002. The location is excellent too, being 24km away from the Beijing Capital International Airport and adjacent to the Second Ring Road, Chang An Avenue, Jianguomen subway station and the Beijing Railway Station.
CONTACT: 7 Jianguomen South Avenue, Dongcheng District, Beijing 100005, China, tel 86 10 5811 8888, www.marriott.com
Hilton Beijing Wangfujing
Designed by the Singapore-based Wilson & Associates as a “chic, intimate lifestyle sanctuary”, this hotel provides 255 guestrooms including 58 suites. Its interiors were inspired by the classical Rococo-style era and traditional architecture of the nearby Forbidden City. The lobby is small but cosy, with black string curtain that runs from the floor to ceiling, silver art pieces and armchairs. Guests can indulge in more artistic offerings in, for example, Vasco’s, one of the few Macanese restaurants in Beijing, complete with a resident water sommelier. Vintage Banks stocked with old- and new-world wines are also part of the hotel stay experience.
CONTACT: 8 Wangfujing East Street, Dongcheng District, Beijing 100006, China, tel 86 10 5812 8888, www.wangfujing.hilton.com
Legendale Hotel
Taking in the grandeur of this 390-room property, one is transported all the way to Europe. And this is not for the faint-hearted. The exterior reminds of a 19th-century French building with a multiple-domed roof, while the interiors are equally lavish, comprising Austrian art nouveau and gilded staircases, as well as a 17-storey atrium lobby and the regal-sounding Noble Club Lounge. Rooms range from 43sqm to 330sqm, offering a garden or city view. Marble bathrooms and L’Occitane kits are some luxuries – and did we mention that internet access is complimentary in the room, lobby and bar?
CONTACT: 90-92 Jinbao Street, Dongcheng District, Beijing 100005, China, tel 86 10 8511 3388, www.legendalehotel.com
BEIJING DEVELOPMENT AREA
Pullman Beijing South
This is the first Pullman property in Beijing which opened in November and the third in China, after Pullman Sanya Yalong Bay Resort and Spa and Pullman Dongguan Forum, also launched last year. Pullman Beijing South is located in the Beijing Development Area near the starting point of the Beijing-Tianjin-Tangshan Expressway. The Beijing Capital International Airport is 40 minutes away by car and the CBD, 30 minutes. Guests of this 434-room property can expect in their rooms IDD phones, iPod connection, fitness equipment and flatscreen TVs with satellite channels, as well as the luxury of complimentary high-speed internet access.
CONTACT: 12 Ronghua South Road, Beijing Economic Technological Development Area, Beijing 100176, China, tel 86 10 8722 8888, www.pullmanhotels.com
HAIDIAN
aloft Beijing, Haidian
Offering 186 rooms, this hotel is the first aloft in Asia-Pacific and also the first to open outside North America – part of the brand’s global expansion with over 100 hotels scheduled to be launched in markets like China, the UAE, India, Thailand, Belgium, Canada and the US by 2011. aloft opened in Tower 2 in November, nearly four months after the launch of its sister property, the Four Points by Sheraton Beijing, Haidian in the adjacent Tower 1. Situated in the Zhongguancun Science Park near the Fourth Ring Road, it is surrounded by high-tech businesses, research centres and universities and the mega Golden Resources Shopping Mall is just minutes away. The brand’s signature 2.7-metre ceiling features in the guestrooms, as well as oversized windows, walk-in showers and sophisticated electronic equipment like Plug & Play which connects to a 42-inch TV.
CONTACT: Tower 2, 25 Yuanda Road, Haidian District, Beijing 100097, China, tel 86 10 8889 8000, www.alofthotels.com
XUAN WU
Doubletree by Hilton
Another first in Asia-Pacific, the Doubletree by Hilton Beijing is located between the Central Office District and the Financial District along the southwest Second Ring Road in the new Lar Valley International complex. There are 547 contemporary-style guestrooms including an Executive Floor with an exclusive lounge. The hotel opened in July, offering a luxury hotel experience in the form of a warm cookie offered to guests upon checking in, carefully picked artworks in the public areas and meeting rooms (which look out to a garden and pool), a 24-hour restaurant, Fitness by Precor gym and a 3,000-square-metre rooftop garden (ideal for private functions) among others.
CONTACT: 168 Guang An Men Wai Avenue, Xuan Wu District, Beijing 100055, China, tel 86 10 6338 1888, http://doubletree1.hilton.com
