Hilton and Country Garden to develop 1,000 Home2 Suites in China
Hilton announced the signing of an exclusive management license agreement with Country Garden to introduce and develop the Home2 Suites by Hilton® brand in China. The agreement with Funyard Hotel Investment (Asia) Limited, a subsidiary of Country Garden, further expands the strategic cooperation between Hilton and Country Garden.
With the rise of the Chinese middle class, room supply in the upper midscale hotel segment has experienced corresponding growth of more than 10 percent annually during the last five years. Following the growing spending power of consumers in China's smaller cities, demand for quality travel and hospitality is expected to increase, creating opportunities for the entry of properties such as Home2 Suites by Hilton® in the midscale segment.
As one of Hilton's fastest growing and award-winning midscale brands, Home2 Suites by Hilton® is well-positioned to capture these opportunities as an affordable upper midscale offering. The brand currently has approximately 400 operating hotels and over 450 hotels in the pipeline across the US and Canada, and its introduction to the Chinese market represents the first major extended stay play for Hilton outside of North America.
Home2 Suites by Hilton® provides stylish and flexible amenities to meet the needs of different travelers, offering homelike conveniences that are valued by both short and long stay guests. The guest experience promise of Home2 Suites by Hilton®, combined with its focus on cost effectiveness through an effective build design and economical operating model also provides potential owners with a strong return on investment.
This strategic cooperation by Hilton and Country Garden to introduce Home2 Suites by Hilton® to China will fill a gap in the midscale hotel segment and provide consumers with more diverse, richer stay options. The introduction of Home2 Suites by Hilton® will also further enhance Hilton's existing brand portfolio in China and satisfy the rising demand for family travel with kids or parents. Hilton is optimistic about the upper midscale hotel segment in China, as a growing number of consumers put more focus on the quality of services at hotels, and China's hospitality market continues to demonstrate great potential.