Hilton to have 1,000 hotels by 2025

A view from the outside of Hilton Beijing.[Photo provided to China Daily]

Hilton Worldwide Holdings Inc aims to have 1,000 hotels in China by 2025, driven mostly by expansions in its mid-market brands including Hampton by Hilton and Hilton Garden Inn.

By the end of September this year, the US hospitality group had 117 hotels in the country and 295 hotels in the pipeline here.

In an interview with China Daily, Christopher J. Nassetta, president and CEO of Hilton Worldwide Holdings Inc, said: "We had five hotels 10 years ago and started to build the momentum. This year we will open almost 50 new hotels and have 60 to 70 new hotels ready next year in China".

He said China continued to be a key growth market for Hilton: "Being more significant in scale in China is important, we need that scale to succeed ultimately."

So far, the Chinese market takes up about 4.5 percent of its global revenue, half of which comes from the Asia-Pacific region, according to Nassetta.

He added that they expect to raise China's contribution to 10 to 15 percent by 2025 through developments including loyalty programs, digital technology and strengthened services.

Hampton by Hilton, which entered the Chinese market three years ago and has opened 20 hotels so far, will expand to about 500 hotels in the next five years. The brand has about 2,100 hotels in about 20 markets since it was first established in 1984. Plateno, which founded the 7Days brand, has a master franchise agreement for Hampton by Hilton in China.

According to Hilton, the occupancy rate on average at its 20 existing Hampton hotels in China was about 74 percent by the end of October this year. The Hilton Garden Inn has 14 hotels across China and 40 more are in the pipeline.

Zhao Huanyan, a hospitality industry analyst with Huamei Hotel Consulting, said mid-market hotels provide good returns for property owners, when compared with low-end budget hotels and luxury hotels.

Last year, China's HNA Group acquired about 25 percent equity interest in Hilton from affiliates of Blackstone as a long-term investor and strategic partner. Nassetta said the synergy of the two companies has encouraged dialogue on how they can better connect assets in the travel and tourism sectors.

Hilton has more than 5,000 properties and more than 825,000 rooms in 103 countries and territories.