Hampton by Hilton to Enter China in a Big Way

by James Ruggia
Last updated: 9:00 PM ET, Thu December 18, 2014

PHOTO: Hampton by Hilton's Phil Cordell sees an opportunity in the rising expectations of China's mid-level travelers. (Courtesy of Hampton by Hilton)

Though international hospitality companies have been in China since the Great Wall Sheraton opened in Beijing in 1985, these hotels tended to cluster in the big cities of the East Coast that were popular on package tours, the so-called "Golden Cities" of Beijing, Shanghai, Guilin and, of course, Hong Kong. In the last 20 years these hotels began appearing in other parts of China following business travelers to where their businesses were taking them.

Likewise, the hotels themselves began evolving away from the glass and brass fortresses that dominated the first generation of international hotels. Now the competition between these companies is moving into new arenas that are vying for Chinese travelers themselves.

In October, Hilton Worldwide and China's Plateno Group agreed to an exclusive license agreement that suggests a new approach by Western hoteliers in China. "In the past international hoteliers were targeting inbound travelers to China with big full service hotels," said Phil Cordell, global head of focused service and Hampton brand management at Hilton Worldwide. "On the other end of the market you had hotels for the Chinese traveler in China that were really little more than hostels or dormitories. As the Chinese economy has progressed, a need for middle-tier accommodation has emerged for Chinese travelers.

"About three years ago we began to think about this market. While we have to be careful in using broad terms such as 'middle class,' because those terms mean something different in the U.S. than they do in emerging economies, we can say that in China there is a growing category of travelers often holding mid-level management positions that are more educated.

"Though there were other hotel companies targeting them with varying degrees of failure and success, we saw a real opening because those companies, in our estimation, didn't know the extent of all they didn't know about the Chinese traveler. We knew what we didn't know, because we have done our research very carefully. Plateno on the other had known what we don't know about that traveler and we know what they don't know about marketing and branding. Thus it's a great partnership."

About 10 years ago, China's Plateno Hotels Group began operating the Seven Days Inn brand of two-star properties. In that period of time they went from zero hotels to 2,300 hotels around China. "Clearly," said Cordell, "Plateno knows the Chinese traveler. In the past that traveler was content with clean sheets, hot water and the ability to use their credit cards. As they've grown more experienced as travelers their ambitions for what a hotel should provide are rising."

Hilton Worldwide already operates 17,000 rooms among its five brands in China including Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, DoubleTree by Hilton and Hilton Garden Inn. The Hampton by Hilton properties will be positioned with a consistent interior design that projects such brand values as strength, value, fun and comfort. Public areas will share the same look and function as current Hampton properties outside of the Americas, with gathering zones, bars, communal tables and on-property amenities, including fitness centers, gaming zones and 24-hour snack bars and restaurants.

"Hampton by Hilton will feel a little different in China than it does in other countries. It will feature slightly smaller rooms but the brand's trust points will remain intact: a clean white bed, free Wi-Fi, free breakfast and a 100 percent guarantee of satisfaction," said Cordell. Hampton by Hilton operates more than 2,000 hotels in 17 countries. The first of 400 Chinese Hampton by Hiltons will open by the end of 2015. Hampton by Hilton's portfolio in China will be a mixture of new builds, conversions and adaptive reuse properties such as re-purposed office buildings.

Guests of Hampton by Hilton hotels in China will be able to participate in the Hilton HHonors program. Plateno Hotels Group operates China's largest hotel guest loyalty program with more than 80 million members, which will provide a new source of guests for Hampton by Hilton in China.

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