Global business continues to fuel Marriott International’s determined push into China, but the homegrown market is also providing incentive for expansion. David Townshend, the chain’s senior vice-president, corporate segments and international sales, said: “Our largest (local) client is the government, followed by domestic companies.”
Marriott aims to open 17 new hotels from this year to 2014, bringing its portfolio to 52 properties and more than 22,000 rooms.
While future launchings across Marriott’s brand network – JW Marriott, Renaissance, Courtyard by Marriott and Marriott Executive Apartments – will take place in the key gateway cities of Beijing, Shanghai and Guangzhou, secondary cities such as Hangzhou, Nanjing, Suzhou, Tianjin and Xian will benefit as well. “The business is very domestic driven in these places,” Townshend pointed out.
By strengthening the company’s presence in China, Marriott executives likewise see opportunities for their overseas properties due to the vibrant outbound market. In the first quarter of this year, the number of Chinese outbound travellers was pegged at almost 12 million, an increase of nearly 5 percent. The US was the second fastest growing destination for them after Asia.
Technology, specifically designed for the market such as http://www.marriott.com.cn/, was set up last year, featuring customised web pages to help companies book negotiated rates directly online.
Despite an oversupply of rooms in Shanghai, especially in the run up to the World Expo 2010, Marriott expects to have 14 hotels operating by the time the event kicks off. At press time, city authorities still had not given any indication of the range of rates to be offered.
India and Thailand, two other flashpoints for Marriott in Asia-Pacific, will experience their own room inventory explosion.
The Subcontinent will see the debut of four Courtyard by Marriotts all within the year, while Thailand will experience openings of Courtyards as well as Renaissance Hotels in Bangkok and Phuket.
Margie T Logarta and Joshua Tan
