Starwood to focus on Chinese ‘secondary’ cities

“In the next two years our plan is to have another 50 plus hotels in China. The majority of these will be in China, but it does also include Hong Kong and Macau. The new hotels will be in secondary cities and key gateway cities,” said Carol Wong, Starwood Business Development Manager.

“Southern China will be the focus... we already have properties in Shanghai and Beijing, so you’ll see more in areas such as Shende, Zhongshan and Guangzhou.”

With some 15 hotels planning to open in 2009, new Starwood properties will be launched in cities such as two in Chongqing, five in Guangdong, and two in Shandong.

Looking forward, Starwood is of the opinion that its focus outside of Beijing and Shanghai will pull it through the economic instability.

“While we will obviously be effected [by the economic crisis], but it won’t really effect the secondary cities. This is because we also focus on domestic demand and regional traffic, not just the US and EU markets... so we’re still very positive about secondary cities in China,” she adds.

Additionally, most of the hotels Starwood is set to open in 2009 are slated for the second half of the year. “There are some delays in opening dates, but nothing major.”