Chinese hotel chains expand overseas operations
Rapid rise in outbound travelers creates strong regional demand, opportunities
Regional reach
The increasingly competitive domestic hotel market is a key driving force behind Chinese hotel companies expanding abroad.
Chain hotels accounted for 38.79 percent of China's hotel industry in 2023 and are expected to reach 45 percent in 2024, according to ABN Data, an Asian travel and accommodation research institute.
The popularity of Japan, South Korea and Southeast Asian countries as travel destinations and their governments' supportive policies for hotel industry development, make them attractive propositions for Chinese hotel operators looking to build their businesses.
These countries also have advantages through their well-developed tourism infrastructure and services, which cover transportation, catering and entertainment.
The hotel market in Southeast Asia is forecast to yield a profit of $13.63 billion this year, and is expected to reach $15.89 billion in 2028, according to Statista.
Over the years, Chinese hotel chains have gained experience in expanding their operations abroad.
In 2011, Jin Jiang Hotels signed a deal with a Philippine company, and has since directly managed or franchised hotels in the Philippines. The same year, the Guangdong-headquartered Dossen opened its budget hotels in Malaysia.
Many other Chinese hotel businesses have joined the wave of going abroad through brand acquisition, franchising and overseas investment.
In December 2023, Zhejiang-based Landison Hotel Group opened its first operation in Nagano, Japan.
The Shanghai-based H World Group will open a new operation in Bangkok, Thailand, this year.
The CTG Hotel Holdings Corp, a wholly-owned subsidiary of Hong Kong-based China Tourism Group, has also made breakthroughs in the Southeast Asian market. It has engaged in brand franchise cooperation with international hotel groups such as IHG Hotels and Resorts, Wyndham, and Hilton.
Currently, the Chinese hotel group has signed agreements to manage nine hotels in Thailand, with four hotels already opened and receiving positive market feedback.
