Global hotel giant Hilton is doubling down on its ambitious expansion strategy in mainland China, aiming to open at least 100 new hotels annually in the world’s second-largest economy. This aggressive growth plan underscores Hilton’s confidence in the burgeoning Chinese leisure travel market, particularly after the COVID-19 pandemic, which has seen a resurgence in domestic tourism.
Qian Jin, President of Hilton Greater China and Mongolia, emphasized the importance of catering to niche markets and offering personalized services to meet the diverse demands of Chinese tourists. “Niche brands are in high demand to offer personalized services to tourists,” said Qian. “We have to fine-tune those brands as we move to some specific destinations to capture the growth opportunities.”
Hilton’s expansion in China is already well underway. The company, which operates renowned brands like Conrad and Waldorf Astoria, now boasts a portfolio of 700 hotels across mainland China, Hong Kong, Taiwan, and Macau. This represents a staggering 367% increase compared to the end of 2018. On August 16, 2024, Hilton marked a significant milestone with the opening of Conrad Chongqing, its 700th hotel in China and the 15th under the Conrad brand.
Alan Watts, President of Hilton Asia-Pacific, highlighted Hilton’s leadership in the Chinese market. “We continue to lead the industry as the fastest-growing international hotel company in China and are better positioned than ever to extend our signature hospitality to even more destinations in the country,” Watts stated. With one in every three hotel rooms under construction in mainland China bearing the Hilton flag, the company’s dominance in the region is undeniable.
Hilton’s growth strategy also strongly focuses on digitalization, an area where Chinese tourists are particularly savvy. “We have been actively studying consumers’ habits and working hard to adapt to the changes in consumer behaviors in a swift manner,” Qian noted. The company has strengthened its digital team to serve the increasingly tech-savvy Chinese market better. The expansion into new locations, including less affluent areas, aligns with a broader trend among international brands seeking to tap into China’s vast consumer base. Despite a slow economy, the hotel market in China is projected to grow at an annualized rate of 8.9%, reaching over $166 billion by 2028, according to Renub Research. With sound management and market positioning, Hilton is poised to capitalize on this growth, offering investors a potential return rate of up to 4%.
