China's Wanda takes first asset-light step

Wanda Realm Wuzhishan

Wanda Hotels and Resorts, similar to other, primarily U.S. hotel companies, has taken the first step in an asset-light approach via an agreement with Baicheng Real Estate Group on the management of Wanda Realm Wuzhishan.

Wanda Realm Wuzhishan, located in Wuzhishan City, Hainan Province, is expected to open at the end of 2018.

The hotel has a planned overall floor space of more than 20,000 square meters, with 250 guestrooms and suites, also including conference facilities, restaurants and bars.

"As the first brand output project of Wanda Hotels and Resorts, Wanda Realm Wuzhishan serves as a significant milestone in our development history. It indicates the Company's first step toward an 'asset-light' strategic transformation," said Mr. Qian Jin, SVP of Wanda Commercial Properties and president of Wanda Hotels and Resorts.

"Wanda Hotels and Resorts is a homegrown luxury hotel management company in China. Since its establishment in 2012, its professional and innovative hotel management team has created the brands of 'Wanda Realm', 'Wanda Vista' and 'Wanda Reign,' which have won recognition and trust in the market in less than four years. We are greatly honored by this. I believe Wanda Hotels and Resorts will remain committed to its pursuit of service quality, operation innovation, and guest satisfaction, as well as in maintaining its excellent management team performance, so as to create unique and oriental brand experiences for guests at home and abroad, and greater market value for the hotel owner."

Mr. Zhang Lanshi, president of Baicheng Real Estate Group, said, "As the benchmark of Chinese luxury hotel management companies, Wanda Hotels and Resorts has distinctive and characteristic brands with remarkable market performance. As for our cooperation this time, we firmly believe that in the near future, Wanda Realm Wuzhishan -- with its completion, excellent management and outstanding brand performance -- will further promote the software and hardware capacity of the tourism industry in the central region of Hainan and provide consistent and attentive service for guests at home and abroad."