After years of expanding business in China's first-tier cities, more and more international hotels are hopping on the current to the booming second and third-tier markets, reported the Global Business & Finance Tuesday.
International brands like Carlson Hotels, Starwood Hotels and Marriott Hotels are on works to open hotels in cities like Zhengzhou, Henan Province.
Other second-to-third tiers like Xi'an, Shenyang, Dongguan, Suzhou and Hangzhou, have increasingly been on the shopping list of businessmen in the field.
In the past 10 months of 2010, the total retail sales in second-tier cities like Tianjin and Chonqing increased 19 percent and 18.8 percent respectively, both higher than the growing speed in Shanghai (17.8 percent).
According to reports from JP Morgan, China's consumption growth in 2010 was generated mainly in second and third tiers.
Though the four-to-five-starred hotels amounted to 17.5 percent of the global amount in China in 2009, the hotel occupancy rate is less than 50 percent in cities like Shanghai.
While in Beijing, according to statistics, among more than 50 five stars, only 5 to 6 have seen green days in earnings.
Competition has been fierce in first tiers pushing international hotels to seek dominance elsewhere (second and third tiers), where they find practically unexplored potential.
Investing in first-tier cities, drains at least 60 billion yuan ($9.08 billion) from a hotel brand, while usually only 8 to 25 billion yuan ($1.21 to $3.78 billion) opens the way for them in less developed cities.
International brands like Carlson Hotels, Starwood Hotels and Marriott Hotels are on works to open hotels in cities like Zhengzhou, Henan Province.
Other second-to-third tiers like Xi'an, Shenyang, Dongguan, Suzhou and Hangzhou, have increasingly been on the shopping list of businessmen in the field.
In the past 10 months of 2010, the total retail sales in second-tier cities like Tianjin and Chonqing increased 19 percent and 18.8 percent respectively, both higher than the growing speed in Shanghai (17.8 percent).
According to reports from JP Morgan, China's consumption growth in 2010 was generated mainly in second and third tiers.
Though the four-to-five-starred hotels amounted to 17.5 percent of the global amount in China in 2009, the hotel occupancy rate is less than 50 percent in cities like Shanghai.
While in Beijing, according to statistics, among more than 50 five stars, only 5 to 6 have seen green days in earnings.
Competition has been fierce in first tiers pushing international hotels to seek dominance elsewhere (second and third tiers), where they find practically unexplored potential.
Investing in first-tier cities, drains at least 60 billion yuan ($9.08 billion) from a hotel brand, while usually only 8 to 25 billion yuan ($1.21 to $3.78 billion) opens the way for them in less developed cities.
