Hilton has entered into an exclusive management license agreement
with Country Garden to introduce and develop the Home2 Suites by Hilton
brand in China, marking the first major extended stay play for the
American hotel chain outside of North America.
The agreement with Funyard Hotel Investment (Asia), a subsidiary of
Country Garden, further expands the strategic cooperation between Hilton
and Country Garden.
With the rise of the Chinese middle class, room supply in the upper
midscale hotel segment has experienced corresponding growth of more than
10% annually during the last five years.
Following the growing spending power of consumers in China's smaller
cities, demand for quality travel and hospitality is expected to
increase, creating opportunities for the entry of properties such as
Home2 Suites by Hilton in the midscale segment.
"As our second largest market globally, China has consistently seen
rapid growth and is forecast to become the world's largest lodging
market," said Alan Watts, president, Asia Pacific, Hilton.
"China's massive infrastructure development will further drive demand
for products like Home2 Suites by Hilton and we look forward to working
together to address the fast-growing demand for midscale hotels against
the backdrop of this region's increasing urbanisation," remarked Ji
Hongjun, president, Funyard.
"In light of the current climate, we expect domestic tourism to be a
key pillar of China's economy and hospitality market," added Qian Jin,
area president, Greater China and Mongolia, Hilton.
The Home2 Suites by Hilton brand currently has approximately 400
operating hotels and over 450 hotels in the pipeline across the US and