SINGAPORE and MCLEAN, Va., June 23, 2020 /PRNewswire/ -- Hilton (NYSE: HLT) today 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.
"As our second largest market globally, China has consistently seen rapid growth and is forecast to become the world's largest lodging market," said Alan Watts, president, Asia Pacific, Hilton. "We know from our success with several existing properties that Country Garden is one of the strongest players in the Chinese property market. We are thrilled to continue working with them to introduce a new Hilton brand to China and realize our shared vision to build more than 1,000 Home2 Suites by Hilton® together."
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.
"We are delighted to have continually strengthened our cooperation with Country Garden over the years, with six Country Garden-owned hotels now operating or in the pipeline that are currently managed by Hilton. As one of the largest real estate developers in China, Country Garden's extensive legacy makes them well-equipped to operate expeditiously in the Chinese market," said Qian Jin, area president, Greater China and Mongolia, Hilton. "In light of the current climate, we expect domestic tourism to be a key pillar of China's economy and hospitality market. Home2 Suites by Hilton® aims to provide consumers with a well-trusted product that is market-relevant at a great value and we look forward to working with Country Garden to bring that to our consumers."
"We are excited to continuously explore new opportunities with Hilton, one of the world's leading hospitality brand and a storied company with over a century of history," said Ji Hongjun, president, Funyard. "China's massive infrastructure development will further drive demand for products like Home2 Suites by Hilton® and we look forward to working together to address the fast-growing demand for midscale hotels against the backdrop of this region's increasing urbanization."
Home2 Suites by Hilton® is an innovative, modern upper midscale lodging brand that caters to travelers eager for life and adventure. The brand 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.
About Hilton
Hilton (NYSE: HLT) is a leading global hospitality company with a portfolio of 18 world-class brands comprising more than 6,100 properties with more than 977,000 rooms, in 118 countries and territories. Dedicated to fulfilling its mission to be the world's most hospitable company, Hilton welcomed more than 3 billion guests in its 100-year history, earned a top spot on the 2019 World's Best Workplaces list, and was named the 2019 Global Industry Leader on the Dow Jones Sustainability Indices. Through the award-winning guest loyalty program Hilton Honors, more than 106 million members who book directly with Hilton can earn Points for hotel stays and experiences money can't buy, plus enjoy instant benefits, including digital check-in with room selection, Digital Key, and Connected Room. Visit newsroom.hilton.com for more information, and connect with Hilton on Facebook, Twitter, LinkedIn, Instagram and YouTube.
About Funyard Hotels & Resorts
As a core business alliance of Country Garden Group - one of "The World's 500 Largest Public Companies" as per Forbes, Funyard Hotels & Resorts manages more than 50-billion-yuan hotel assets worldwide and provides operation and asset management services for over 100 high-quality hotels. It honors 8 hotel and serviced apartment brands, including Country Garden Phoenix, Country Garden Holiday, Funyard, Fondney, Funyard Select, Blessfun, Beelan and Kylin with over 30,000 guestrooms covering 50 regions and cities in China and Malaysia. It commits itself to deliver a full lifecycle of hotel asset management services in aspects of "investing, financing, constructing, managing and exiting" and to be the world's leading high-quality hotel asset operator.
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