Being the manager of a chain of hotels which runs buildings owned by others is not an easy task. There is always the chance another chain of hotels will come and undercut you by promising more or asking for less.
The Pan Pacific Hotels group are at the start of a "growth strategy" for China and that means they’re going to open their second hotel in China in January 2010.
They started with the Pan Pacific Xiamen earlier this year and now they are taking over and rebranding the Sheraton Suzhou Hotel and Towers in the east coast city of Suzhou.
Plainly, not a happy move for Sheraton.
For this is a 484-room hotel to which Sheraton just added a brand new wing of 99 rooms earlier in the year (no one who is saying paid for this exentsion but a guess would be that it was not Sheraton money).
reports that before the January reopening they’ll be putting some Pan Pacific "brand standards" in place. (If there is a suggestion here that the Pan Pacific brand standards are in some way higher than those of the Sheraton then we are dealing with high farce. Different, yes. Better, no.)
The Pan Pacific has a third hotel planned for Tianjin in 2011. There is no information as to whether there is a current tenant or who it would be.