Hilton announces expansion into mid-range segment

Hilton has announced that it will expand its brand portfolio and double the number of hotels under its banner in China to cater to a wider range of consumer groups during the country's consumption upgrading and supply-side economic reforms.

The world-renowned hotel group aims to have 100 hotels across six brands in China by the end of March, which are Waldorf Astoria, Conrad, Hilton, Double Tree, Hampton and Garden Inn.

A proportion of the new hotels will be full-service hotels and midrange Hilton Garden Hotels, in response to declining occupancy rates at both high-end and budget hotels.

There are currently more than 90 hotels under Hilton brands in China, with another 234 in the pipeline, said Rupert Hallam, the company's vice-president of sales in the Asia-Pacific region.

The number will double in the next few years, Hallam said.

"We see the potential of the midrange hotel, so we will pay attention to the development of Hilton Garden Hotels," he said. "We will introduce three new brands, Curio - A Collection by Hilton, Canopy by Hilton and Embassy Suites by Hilton. We hope to meet different market demands through different brands."

Hilton has 185 hotels in the Asia-Pacific region, and China is its biggest market in the region. The company is unfazed by questions surrounding market performance and competition.

"For 48 out of 52 weeks last year, our performance in the Chinese market was not only ahead of the average but also better than in 2015," Hallam said.

Zhu Ruimin, vice-president of sales at Hilton Greater China and Mongolia, said concerns about competition were unwarranted.

"Supply-side reforms are ongoing, and we are not fixated on existing market conditions or trends," Zhu said. "It is like ordering a bottle of wine - you might not know exactly what you want, so we can guide you toward something that we believe will satisfy you."

Hilton's first, and so far only, property in Urumqi, capital of the Xinjiang Uygur autonomous region in Northwest China, recently won the company's award for best catering services in the Asia-Pacific region, and its popularity shows the potential that exists in China's lower-tier cities, Zhu said.

"Especially in the third and fourth-tier cities, clients have the purchasing power and the demand, but they have far fewer choices," he said. "We can see many opportunities in the imbalance between supply and demand."

Hilton is also expanding its Meet with Purpose program to include the Asia-Pacific region, to help meeting and event planners to seamlessly organize healthier, more mindful and more sustainable events that impress attendees.

The hotel group believes in the power of human connections to drive business forward supported by an unparalleled global footprint, Zhu said.

The Hilton Honors rewards program has been upgraded and features unique benefits for its members, providing more flexibility, more value and more ways for them to use their points.

Members can use the new slider tool online to select how many points they want to redeem in 1,000 point increments, starting at 5,000 points.

To ensure the company stays at the vanguard of the digital revolution, the Hilton Honors app helps to make users' travel experiences easier and more personalized through industry-leading digital tools such as online check-in with room selection, which allows members to view and choose their room, as well as a digital key facility, which enables members to use their smartphones as their room key.

Contact the writers at yangcheng@chinadaily.com.cn and renxiaojin@chinadaily.com.cn