|Is Marriott's China Expansion Doomed for Bubble Burst?|
|by Tom McGregor||Thu, Nov 1, 2012, 04:42 AM|
BEIJING: Marriott Corp is raising the stakes to expand on a grander scale its hotel presence in China. According to media reports, "Marriott International Inc announced on Tuesday that it expects to open on average one hotel per month" in the country.
The hotelier giant outlined a plan to more than double the size of its Asia-Pacific regional operations in the next few years. A Marriott press release indicates that 132 hotels are expected to open in Asia in approved deals that cover an additional 143 properties. The company would construct at least 265 hotels by 2016 with 80,000 rooms, located in 16 countries.
In recent years, Marriott has taken an aggressive approach in China's hospitality sector while enjoying remarkable success. The figures should speak for themselves.
"The company witnessed the doubling of membership in Marriott Rewards, its award-winning loyalty program in Asia last year," as reported by The Nation newspaper of Bangkok. "Marriott Rewards grew to more than a million members in China alone, a country that continues to lead the company's Asia growth."
Nevertheless, a strong record of growth in the past does not guarantee similar results for the future. For the past three decades, China has experienced tremendous economic growth rates with its annual GDP at times surging into the double digits.
Yet, times are changing and the nation is going through a slowdown of growth rates. It faces a transitional period, and Marriott will continue on with major expansion in China.
To read the entire article from the China Daily, link here:
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