U.K.-based InterContinental Hotels Group (IHG) has introduced Hualuxe hotels, a luxury hotel brand for Chinese travelers in China.
More than 100 million Chinese traveled abroad last year. With more than 4,800 hotels in nearly 100 countries, IHG wants to create loyal customers in China that will spend at IHG’s subsidiaries when they travel abroad.
“Outbound (travel from China) is large and growing,” IHG CEO Richard Solomons said. “It’s important to have a strong domestic brand if you want to target outbound [travelers],” he added.
Hualuxe was developed in response to the desires of customers seeking luxury, but with a more Chinese feel. To meet customer demand, Hualuxe hotels are designed using more traditional Chinese styles and have more room for entertaining, including tea rooms, reports The Wall Street Journal.
Hualuxe opened its second hotel in China this week in Nanchang in Jiangxi province. The first hotel opened in Yangjiang in Guangdong province in February. Both hotels are owned by Shanghai-based real estate developer Greenland Group.
Over the next twenty years, IHG plans to open 100 Hualuxe hotels across China, along with hotels in popular destinations for Chinese tourists, including Paris, New York, and London.
Despite China’s luxury spending slowdown, IHG is not concerned about the new brand’s prospects in China, as the company says that it outperformed Greater China’s broader hotel market during the first quarter.
According to figures from STR Global, a market research firm in the hotel industry, the closely watched performance figure of revenue per available room rose 1.4 percent in China’s luxury hotel segment during the first three months of 2015. Revenue per available room had decreased 2.6 percent in 2014 and 5.6 percent in 2013.
image credit: ihg