Chinese hotel developers are setting their sights on foreign markets as they follow the money trail left behind by mainland tourists.
South China Morning Post is reporting that this international push is also influenced by fears of an oversupply of rooms on the mainland, as is the anti-corruption and frugality drive spearheaded by the Communist Party.
"Room rates at five-star hotels in major mainland cities declined five percent last year," the South China Morning Post writes, quoting Jones Lang LaSalle. "About 100 million Chinese visited tourist destinations abroad last year, splashing out $120 billion on their way to becoming the biggest spenders in global tourism."
Developers are betting on the Chinese feeling more comfortable staying at hotels that offer Chinese food and services when traveling abroad. Key global brands have already begun to capitalize on this theory. Zhang Yulian, chairman of Greenland Holding Group, Shanghai's largest property developer, believes that a better understanding of Chinese habits would give local companies a major advantage.
"We want to build hotels at places where Chinese go," Simon Manning, a vice president at Langham Hospitality Group tells the South China Morning Post. "Wealthy Chinese are going to be the next largest consumer group worldwide."
Photo courtesy of South China Morning Post