US-based Howard Johnson, a hotel chain owned by Cendant Group, said it plans to open 33 hotels in China by 2006 as the country is the top priority in the chain's expansion.

"China has the top priority in our expansion because of its prosperous economy," said Daniel Pauwaert, vice president of Howard Johnson International (China). "We are confident about China in the long term and we are pleased to be part of that growth."

The firm opened its flagship Howard Johnson Plaza Hotel last month in Shanghai.

"The dismal situation brought by the SARS outbreak has ended and hotel occupancy has picked up very positively," said Pauwaert, who is also the general manager of the new hotel.

Howard Johnson Plaza Hotel is the first hotel that Howard Johnson International (China) has opened this year. It will open one new hotel each in Wuhan, Guiyang, Hangzhou, Xi'an and Nanjing.

Aiming to be the best business hotel chain in China, Howard Johnson International (China) says it will focus on developing four- and five-star business hotels.

"We will be present in all capital cities (of the provinces) in China in a few years," Pauwaert said.

The 50-year-old Howard Johnson International now operates nearly 650 hotels in 15 countries.

"Most large foreign hotel managers are extending their footprint in China, but mainly at the high-end market," said Zhao Xueqin, a Haitong Securities analyst. "The fast-growing economy in China, and particularly in Shanghai, brings them more business opportunities."

Starwood Hotels & Resorts Worldwide Inc, which owns the Westin, Sheraton and St Regis, plans to triple its hotels in China to about 45 in the next three years.

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