China Economic Review
Charting China’s changing economic terrain · Since 1990
Luxury hotel group planning expansion
December 6, 2009
Luxury hotel group Kempinski Hotels is doubling the number of hotels under its management in China over the next three years. The German firm is also launching a new five-star hotel brand called Nuo exclusively for the Chinese market.
Reto Wittwer, president and chief executive officer of Kempinski said that although China is still "young" in Kempinski’s global business, and accounts for just 15% in terms of the number of hotels, the market will continue to grow quickly in the years ahead. By 2012, China it is estimated will account for 20% of turnover and profits.
The group also expects its business to blossom in the country after the Nuo brand comes into existence and expands its network.
All of which has to be seen in the context of the fact the hotel sector badly hit in the aftermath of the financial crisis as inbound travel declined. Industry sources, however, maintain that the sector has started to recover from the third quarter of this year and expect the market to regain its momentum next year.
Reto Wittwer said, "China is one of the few regions that is doing well amid the gloom."
China Daily said compared with many of its foreign counterparts, Kempinski, however, has been going slow on its expansion.