Who owns Marriott’s ‘Classic Premium’ hotels in Shanghai? (Second in a series)

In our previous post, we explored the ownership of Marriott’s luxury hotels in Shanghai. Here, we will examine the ownership of more Marriott properties in the city, beginning with the ‘Classic Premium’ brands – Westin, Sheraton, Marriott, and Delta.[1]

The ownership information we’ve compiled reflects what we could obtain from public documents, largely from provincial Administrations of Industry and Commerce and the Hong Kong Companies Registry.

Where the company does not have an English name, a translation of the company’s Chinese name is included in [brackets]. For non-mainland China companies, the jurisdiction where the company is based is included in (italicized parentheses).

 

The Westin Bund Center, Shanghai

The sole Westin in Shanghai has a minority interest held by Shanghai’s Huangpu District. The majority interest is owned by two companies based in the British Virgin Islands companies through a Hong Kong company, Koon Chung Limited.

Sheraton Grand Shanghai Pudong Hotel & Residences; Sheraton Shanghai Chongming Hotel

Two Sheraton properties in Shanghai, the Sheraton Grand Shanghai Pudong and the Sheraton Shanghai Chongming, are owned by 上海由由(集团)股份有限公司 (Shanghai Yuyi Group). That company is in turn majority owned by an array of individuals, each of whom owns slices of the company directly or through 上海由由投资发展有限公司. We have calculated their ownership stakes in the table below.

 

Individual Name Ownership in

上海由由()股份有限公司 (Direct)

Ownership in

上海由由投资发展有限公 (Indirect)

Total Ownership in Hotels
陆忠慈 (Lu Zhongci) 2.0% 2.0%
吴亚林 (Wu Yalin) 1.5% 22.0% 11.1%
包顺良 (Bao Shunliang) 1.5% 6.0% 4.1%
山佳明 (Shan Jiaming) 3.0% 51.0% 25.2%
张金荣 (Zhang Jinrong) 1.5% 6.6% 4.4%
王福祥 (Wang Fuxiang) 3.4% 1.5%
陈立华 (Chen Lihua) 3.4% 1.5%
陈福弟 (Chen Fudi) 4.2% 1.8%
严伟国 (Yan Weiguo) 3.4% 1.5%

 Sheraton Shanghai Hongkou Hotel

A number of individuals have an interest in the Sheraton Shanghai Hongkou Hotel, as does Sichuan Trust. (NB: 創力控股集團有限公司 / Sunny Holding Group is the company formerly known as 香港创安集团有限公司 / Hong Kong Safeone Group.)

Individuals with an interest in the Sheraton Shanghai Hongkou
Name English Name
周万沅 Zhou Wanqi
余瑞敏 Yu Ruimin
张文军 Zhang Wenjun
王海生 Wang Haisheng
程立强 Cheng Liqiang
孟良 Meng Liang
甘立 Gan Li
Wu Wen Tuo
Ko Tin Kwok
Cheng Kwun Fu
张玮 Zhang Wei
刘巨涛 Liu Jutao

Sheraton Shanghai Waigaoqiao Hotel

If this corporate structure looks familiar, it’s because it mirrors part of the ownership of the St. Regis Shanghai Jingan, which we explored in our previous post.

Shanghai Marriott Hotel City Centre

According to a 2009 filing with the Hong Kong Stock Exchange, the Shanghai Marriott City Centre is owned entirely by Agile Property Holdings through Maximum Rise Investments (BVI) Limited, a British Virgin Islands company.

Shanghai Marriott Hotel Hongqiao

The ownership of this hotel has two parts: One which traces to a group of individual shareholders (listed in the table below), and another which is held by Tsui Tai Wai David and a British Virgin Islands-incorporated company.

Individual Investors in 上海紫江(团)有限公司 (Direct and Indirect)
Name English Name Name English Name
沈雯 Shen Wen 楼思齐 Lou Siqi
胡兵 Hu Bing 沈国兴 Shen Guoxing
李彧 Li Wei 毛国敏 Mao Guomin
张信林 Zhang Xinlin 徐斌 Xu Bin
唐继锋 Tang Jifeng 徐云飞 Xu Yunfei
孙琦明 Sun Qiming 罗晓金 Luo Xiaojin
孙宜周 Sun Yizhou 刘铁峰 Liu Tiefeng
顾卫东 Gu Weidong 周大鸣 Zhou Daming
刘罕 Liu Han 庄国兴 Zhuang Guoxing
沈国权 Shen Guoquan 龚世毅 Gong Shiyi
郭峰 Guo Feng 范瑞娟 Fan Ruijuan
彭胜浩 Peng Shenghao 董宁晖 Dong Ninghui
周洁碧 Zhou Jiebi 顾利民 Gu Limin
徐志强 Xu Zhiqiang 金蔚文 Jin Weiwen
王虹 Wang Hong 侯郁 Hou Yu
陆卫达 Lu Weida 沈继忠 Shen Jizhong
陈勇 Chen Yong 贺美华 He Meihua
张华 Zhang Hua 戚建民 Yan Jianmin
夏光 Xia Guang 俞雅华 Yu Yahua

Shanghai Marriott Hotel Kangqiao

The Shanghai Marriott Hotel Kangqiao has three ownership groups. One portion is held by a government agency connected to the defunct Nanhui County of Shanghai.

Another is owned by Zhou Chengjian, a textile magnate, and his daughter, Hi Jiajia. In 2016 Zhou mysteriously disappeared for a week during China’s anti-corruption campaign before returning to work.[2]

The final part is owned by Su Muchao and Tang Liuqi.

Shanghai Marriott Hotel Parkview

This hotel is owned by 高华 (Gao Hua).

Shanghai Marriott Hotel Pudong East

The individuals who own the Shanghai Marriott Hotel Pudong East are listed in the table below.

Individual Ownership
Name English Name
王晓岩 Wang Xiaoyan
余刚 Yu Gang
陈军 Chen Jun
冯斌 Feng Bin
刘仁军 Liu Renjun
路一新 Lu Yixin
王庆辉 Wang Qinghui
颜江红 Yan Jianghong
张广海 Zhang Guanghai
赵洪辉 Zhao Honghui

Shanghai Marriott Hotel Riverside

The Shanghai Marriott Hotel Riverside is owned by Greenland Holdings Group, a publicly traded company.

Delta Hotel Shanghai Baoshan

While the ownership chart of the Delta Shanghai Baoshan is complex, the majority owner is 朱卫杰 (Zhu Weijie).

 

 

[1] The chain scale established by Marriott International is in the company’s 2017 Annual Report: Form 10-K filed with the SEC, Marriott International, 2/15/18, pgs. 5-6. https://www.sec.gov/Archives/edgar/data/1048286/000162828018001756/mar-q42017x10k.htm.

[2] Patti Waldmeier, “Missing Chinese billionaire Zhou Chengjian returns to work,” CNBC, 1/18/16. https://www.cnbc.com/2016/01/18/missing-chinese-billionaire-zhou-chengjian-returns-to-work.html.

BREAKING: Taiwan hotel announced it will break Marriott contract in protest over chain’s accommodations of China

Concerns over Marriott listing Taiwan as part of China at two Taiwanese Four Points by Sheraton properties have led to the announced dissolution of one of the hotel’s franchise agreements with Marriott.  While the loss of the brand has not yet received much coverage in the US, multiple Chinese language outlets have picked up the story (see below).

Readers of Marriott China Observer may recall that in January 2018 Marriott sent an email survey to Chinese customers which listed Taiwan, Tibet, Hong Kong as separate countries, an act which galvanized Chinese public opinion and led Chinese government regulators to temporarily shut down Marriott’s website and apps.

We asked at the time whether Marriott had the cultural competency to manage conflicting demands from the US and China.  The loss of this franchised property agreement can be viewed as a casualty in Marriott’s failure to navigate an increasingly complex global landscape.

At the end of July, the Four Points by Sheraton Linkou opened in New Taipei City, but quickly engendered controversy from Taiwan residents over the labeling of Taiwan as part of China. A Taiwanese Facebook user posted a screenshot from the hotel’s Wi-Fi connection screen showing Taiwan as “Taiwan, China” with a red five-star-flag of China next to it. [i] The hotel’s rating on Facebook and Google subsequently dropped to 1.1 stars. Taiwan News reported that the hotel responded that it “is directly under the management of Marriott International and all foreign language content must comply with brand specifications and cannot be changed at their own discretion.”[ii]

On August 16th, 2018, the Four Points by Sheraton Taipei Zhonghe property announced that it would terminate its franchise agreement in a front-page advertisement in local newspaper the Liberty Times. On the simplified Chinese version of the Zhonghe property’s website, the country had been listed as “Taiwan, China”; on the traditional Chinese version of the website, it was listed as simply “Taiwan.”[iii] A spokeswoman for the hotel told a reporter from Agence France-Presse that its name will now be changed and it will no longer take reservations from Marriott’s booking system.[iv] As of August 16th, the hotel was not listed on Starwood Hotels website when searching for Taiwan hotels.[v]

We’ve covered the ongoing controversy over Marriott’s labeling of Taiwan and China here, here, here and here.

Further news articles on this developing story

Four Points by Sheraton Linkou controversy

万豪旗下酒店跟进更改涉台标注 台网友刷Wifi发现“中国台湾”和五星红旗” – Huanqiu, 8/9/18

万豪酒店改涉台标注 显示为“中国台湾”和五星红旗” – iFeng, 8/9/18

万豪旗下酒店改涉台标注,登录页面变“中国台湾”和五星红旗” – Thepaper.cn, 8/9/18

台网友发现万豪酒店Wifi现“中国台湾”和五星红旗” – China News, 8/10/18

New Taipei Sheraton hotel Wi-Fi screen posts flag of communist China next to Taiwan” – Taiwan News, 8/10/18

Four Points by Sheraton Taipei Zhonghe contract termination

Taiwan hotel axes Marriott contract over China naming row” – Channel News Asia (AFP), 8/16/18

Hotel drops Marriott for caving in to China” – Taipei Times, 8/16/18

抗議萬豪強冠「中國台灣」中和福朋喜來登即起解約” – Liberty Times, 8/16/18

中和福朋喜來登挺台灣!更名解約損失逾千萬在所不惜” – Liberty Times, 8/16/18

不只中和福朋喜來登!萬豪還對台灣14家飯店硬冠「中國台灣」” – Liberty Times, 8/16/18

不满被万豪标注”中国台湾” 台北一酒店跳脚要解约” – Sina, 8/16/18

不满被冠“中国台湾” 中和福朋解除与万豪集团合约” – Zaobabo, 8/16/18

抗議冠名「中國台灣」 中和福朋喜來登與萬豪酒店解約” – UDN, 8/16/18

万豪强改「中国台湾」? 中和福朋喜来登解约抗议” – China Times, 8/16/18

Taipei Sheraton cans Marriott over its groveling to China” – Taiwan News, 8/16/18

Taiwan demands correction of ‘Taiwan, China’ name on Intercontinental site” – Taiwan News, 8/16/18

 

[i] Keoni Everington, “New Taipei Sheraton hotel Wi-Fi screen posts flag of communist China next to Taiwan,” Taiwan News, 8/10/18. https://www.taiwannews.com.tw/en/news/3503477

[ii] Keoni Everington, “New Taipei Sheraton hotel Wi-Fi screen posts flag of communist China next to Taiwan,” Taiwan News, 8/10/18. https://www.taiwannews.com.tw/en/news/3503477

[iii] “Taiwan hotel axes Marriott contract over China naming row,” Channel Asia News (AFP), 8/16/18. https://www.channelnewsasia.com/news/asia/taiwan-hotel-axes-marriott-contract-over-china-naming-row-10621676

[iv] “Taiwan hotel axes Marriott contract over China naming row,” Channel Asia News (AFP), 8/16/18. https://www.channelnewsasia.com/news/asia/taiwan-hotel-axes-marriott-contract-over-china-naming-row-10621676

[v] Search for Taiwan, Starwood Hotels, retrieved 8/16/18 at 15.58EDT. starwoodhotels.com.

As major Chinese hotel developers abandon international brands, how will Marriott fare?

China is Marriott’s largest single market outside of the U.S.[1] China alone accounted for a full 20% of the global hotel development pipeline as of early 2018.[2] Marriott needs in-country partners in order to benefit from the Chinese hospitality industry’s rapid growth.

Two important hotel developers in China, Greentown China and Wanda, have indicated that they are moving away from international brands including Marriott, narrowing the range of partners for Marriott in China.

Greentown Executive: International Brands Have Not Adapted to China

Greentown Asset Management is a subsidiary of Greentown China.[3] (Greentown China was featured in our previous post as one of the key Marriott hotel developers in China.) Greentown China is the tenth largest real estate developer in China in terms of contracted sales.[4]

In a recent opinion piece, Xiang Xu, deputy general manager of Greentown Asset Management, discussed how Chinese hotel brands are ending the domination of the high-end Chinese hotel market by international brands like Marriott, Hilton, and IHG.[5]

According to Xu, international brands have been dominating the Chinese luxury hotel segment. One of the main phenomena observed by Xu is that foreign branded hotels have struggled to adjust to the current Chinese market.[6] He argued that international high-end hotels were introduced to China during the Deng-era economic reforms, and they were primarily catering toward foreigners visiting China.[7]

He added that in recent years, local customers became the core of the high-end hotels market in China.[8] Despite this, many international hotel brands did not update their management models, leading to gaps between what they offer and customer demands. Xu concluded that this created an opportunity for Chinese hotel companies to break the dominance of international luxury hotels by better capitalizing on future market trends. [9]

These comments come as Greentown’s mix of in-development hotels dilutes the presence of Marriott hotels compared to its current mix. On its website, Greentown Asset lists 12 current operating Greentown hotels, 9 of which are Marriott hotels.[10] But of the 12 Greentown hotels in development listed on the company’s website, only two of them are Marriott-branded.[11]

Chart: Percentage of Greentown hotels by brand, Existing vs. In Development [12]

Wanda sold Marriott hotels, plans to dissolve foreign hotel partnerships and rebrand

The Chinese developer Wanda is the leading player in China’s luxury hotel market, according to Nikkei Asian Review.[13] Through sales and announcements of their future projects, they have distanced themselves from international hotel chains.

Wanda was formerly the owner of 10 Marriott hotels, which the group sold to R&F Properties in January 2018.[14] [15] [16] On April 7th, 2018, Nikkei Asian Review reported that Dalian Wanda planned to dissolve its partnership with foreign hotel chains, rebrand jointly run properties, and operate them as its own.[17]

In a statement announcing the rebranding of a Beijing hotel, Wanda declared, “To break the dominance that other international brands held in the high-end hotel market, however, Wanda founded Wanda Hotel and Resorts Co., Ltd. in 2012, sparing no effort in building self-owned hotel brands such as Wanda Vista. Since this time, Wanda has gradually begun to withdraw management authorizations granted to international groups, and has steadily worked to develop self-owned premium hotel brands.”[18]

The actions of these major players in the Chinese hotel industry narrow the range of partners for Marriott to work with in China.

 

[1] Hotel News Nows (2017, June 20th), 5 things Marriott’s Sorenson has to say about hotels, retrieved June 10th, 2018, http://hotelnewsnow.com/Articles/146865/5-things-Marriotts-Sorenson-has-to-say-about-hotels

[2] Lodging Magazine (2018, March 8th), The Top World Regions and Markets for Hotel Construction, retrieved June 10th, 2018, http://lodgingmagazine.com/the-top-world-regions-and-markets-for-hotel-construction/

[3] Greentown China, 绿城资产管理公司, retrieved June 10th, 2018, http://www.chinagreentown.com/asset

[4] South China Morning Post (2018, January 2nd), Top Chinese developers tighten grip on housing market despite overall slowdown, retrieved June 10th, 2018, http://www.scmp.com/property/hong-kong-china/article/2126531/top-chinese-developers-tighten-grip-housing-market-despite

[5] The Economic Observer (2017, November 10th), 五星级酒店的中国破局者, retrieved June 10th, 2018, http://www.eeo.com.cn/2017/1110/316480.shtml

[6] The Economic Observer (2017, November 10th), 五星级酒店的中国破局者, retrieved June 10th, 2018, http://www.eeo.com.cn/2017/1110/316480.shtml

[7] The Economic Observer (2017, November 10th), 五星级酒店的中国破局者, retrieved June 10th, 2018, http://www.eeo.com.cn/2017/1110/316480.shtml

[8] The Economic Observer (2017, November 10th), 五星级酒店的中国破局者, retrieved June 10th, 2018, http://www.eeo.com.cn/2017/1110/316480.shtml

[9] The Economic Observer (2017, November 10th), 五星级酒店的中国破局者, retrieved June 10th, 2018, http://www.eeo.com.cn/2017/1110/316480.shtml

[10] Greentown China, retrieved June 10th, 2018, http://www.chinagreentown.com/asset/bussiness/Estate

[11] Greentown China, retrieved June 10th, 2018, http://www.chinagreentown.com/asset/bussiness/Estate

[12] Greentown China, retrieved June 10th, 2018, http://www.chinagreentown.com/asset/bussiness/Estate

[13] Nikkei Asian Review (2018, April 7th), Dalian Wanda to end partnerships with foreign hotel chains, retrieved June 10th, 2018, https://asia.nikkei.com/Business/Companies/Dalian-Wanda-to-end-partnerships-with-foreign-hotel-chains

[14] 招商证券股份有限公司, 关于大连万达商业地产股份有限公司公司债券重大事项临时受托管理事务报告, retrieved June 10th, 2018, http://www.cninfo.com.cn/finalpage/2017-08-07/1203767583.PDF

[15] People.cn (2017, November 24th),“世纪交易”再生变:富力收购万达酒店资产总价下降至189.5亿, retrieved June 18th, 2018, http://house.people.com.cn/n1/2017/1124/c164220-29666477.html

[16] Caixin (2018, March 20th), R&F Expects $126 Million Revenue This Year From Former Wanda Hotels, retrieved June 10th, 2018,  https://www.caixinglobal.com/2018-03-20/rf-expects-126-million-revenue-this-year-from-former-wanda-hotels-101223819.html

[17] Nikkei Asian Review (2018, April 7th), Dalian Wanda to end partnerships with foreign hotel chains, retrieved June 10th, 2018, https://asia.nikkei.com/Business/Companies/Dalian-Wanda-to-end-partnerships-with-foreign-hotel-chains

[18] Wanda (2017, December 29th), Sofitel Wanda Beijing Renamed Wanda Vista, retrieved June 18th, 2018, https://www.wanda-group.com/2017/latest_1229/1799.html

到底谁是上海万豪奢华酒店的业主?(系列文的第一篇)

 

万豪采用“轻资产”战略模式,也就是第三方拥有酒店物业,万豪提供品牌和或管理服务。[1] 这便产生了一个问题:谁是中国万豪酒店的业主? 我们将在接下来的系列文中从上海万豪奢华品牌开始,分析其酒店所有权结构。

本文中的所有权信息由我们从公共文件渠道获得,出处主要来自上海市工商行政管理局和香港公司注册处。 如果控股公司没有英文名称,其中文名称的翻译被包含在[方括号]内。

上海的一些豪华万豪酒店全部或部分由政府机构拥有。此外,有些公司全部或部分由中国大陆以外的集团拥有。 对于非中国大陆公司,公司所在的司法管辖被列在(斜体括号)内。

 

位处上海明天广场的JW万豪酒店

 上海明天广场的JW万豪酒店最终所有权归属上海市国有资产监督管理委员会所有。

位处上海长风公园的JW万豪酒店

该酒店房产的多数股权由丁福如持有,据新加坡历史档案处记载,丁福如是居住在上海的新加坡公民。少数股权由居住在新加坡的中国公民丁佳磊持有。

上海浦东丽思卡尔顿酒店

上海丽思卡尔顿酒店的所有权归属在英属维尔京群岛的上海新陆一房地产有限公司,该公司种子资本是以美元计价。

上海波特曼丽思卡尔顿酒店

上海波特曼丽思卡尔顿酒店是上海中心的一部分,上海中心是集公寓,办公室和零售一体的综合开发项目。  [2] 2001年《亚特兰大商业纪事报》上的一篇文章表示上海中心的所有权由Seacliff 有限公司持有,Seacliff有限公司是一家合资企业,由保险巨头美国国际集团,日本建筑公司鹿岛建设株式会社,亚洲香格里拉有限公司和亚特兰大开发商Portman Holdings合资而成。[3]

Seacliff 有限公司目前在香港运营。 Seacliff的董事会[4] 执行高管来自Portman Holdings(John C. Portman III),[5]亚洲香格里拉(Lui Man Shing),[6] 美国国际集团(John S. Whitaker),[7]和鹿岛建设株式会社(Keisuke Koshijima)。[8]

四家公司中,香格里拉表示持有丽思卡尔顿30%的股权。[9]

上海静安瑞吉酒店

瑞吉上海品牌店有两组业主。酒店一部分由光大兴陇信托有限责任公司所有,该公司由来自中国各地的四个不同国有公司持有,其中包括中国光大集团股份公司,和一家大众银行。 剩余利益归至总部位于英属维尔京群岛的Longtex 国际有限公司。

上海外滩W酒店

上海外滩W酒店位于北外滩白玉兰广场。 金光集团是一家印尼企业集团,其子公司亚洲浆纸主要控股造纸业。 [10] 上海W酒店的多数股权由总部设在毛里求斯的亚洲浆纸中国控股有限公司持有, 其余部分由总部位于百慕大的中国房地产开发商香港建设控股有限公司持有。[11]

上海衡山路十二号豪华精选酒店

位于衡山路十二号的豪华精选酒店的所有权归上海市国有资产监督管理委员会所有。

上海红塔豪华精选酒店

红塔酒店由中国烟草总公司所有。

[1] Deanna Ting, “Marriott Is Selling More Starwood Properties to Further Its Asset-Light Strategy,” Skift, 4/4/17. https://skift.com/2017/04/04/marriott-is-selling-more-starwood-properties-to-further-its-asset-light-strategy/.

[2] Featured Properties, AIG, retrieved 7/9/18. http://www.aig.com/aig-global-real-estate/featured-properties.

[3] Matt Gove, “Portman seeks fees from partners in Shanghai project,” Atlanta Business Chronicle, 2/19/01. https://www.bizjournals.com/atlanta/stories/2001/02/19/story8.html.

[4] Annual Return for 2017, Seacliff Limited, filed with Hong Kong Companies Registry, 11/08/17.

[5] Profile of John C. Portman III, Portman USA, retrieved 7/10/18. https://www.portmanusa.com/assets/lib/2015/05/19/c08c40e6a952b4e8c818b26ee2883807.pdf.

[6] Corporate Profile, Shangri-La Asia, retrieved 7/10/18. http://www.ir.shangri-la.com/ir/en/asia_corporate_profile.asp.

[7] Our Leadership Team, AIG Global Real Estate, retrieved 7/10/18. http://www.aig.com/aig-global-real-estate/our-leadership-team.

[8] Directors, Officers, Kajima Corporation, retrieved 7/10/18. https://www.kajima.co.jp/english/prof/officers/index.html.

[9] 2017 Annual Report, Shangri-La Hotels, p. 24. http://www.ir.shangri-la.com/ir/en/reports/annualreports/2017/ar2017.pdf.

[10] Business Profile, Sinar Mas Group, 2016. http://www.sinarmas.com/en/images/download/Sinar%20mas%20Business%20profile.pdf.

[11] Annual Report 2017, HKC (Holdings) Limited, pgs. 3 and 11. http://www.hkcholdings.com/attachment/2018041817320200033113667_en.pdf.

Who owns Marriott’s luxury hotels in Shanghai? (First in a series)

Marriott has pursued an ‘asset-light’ strategy, wherein third parties own the hotel properties, and Marriott provides the brand and/or management services.[1] This raises the question: who owns Marriott’s properties in China? In this post, the first in a series, we will examine the ownership structure of Marriott’s hotels in Shanghai, beginning with luxury brands.

The ownership information in this post reflects what we could obtain from public documents, largely from the Shanghai Administration of Industry and Commerce and the Hong Kong Companies Registry. Where the company does not have an English name, a translation of the company’s Chinese name is included in [brackets].

Several of the luxury Marriott hotels in Shanghai are owned wholly or in part by government entities. Additionally, several are owned in whole or in part by entities based outside of mainland China. For non-mainland China companies, the jurisdiction where the company is based is included in (italicized parentheses).

JW Marriott Hotel Shanghai at Tomorrow Square

The JW Marriott Hotel Shanghai at Tomorrow Square is ultimately owned by上海市国有资产监督管理委员会, an agency of the Shanghai government.

JW Marriott Hotel Shanghai Changfeng Park

This property is majority owned by 丁福如 (Ding Furu), who according to Singapore public records is a Singapore citizen living in Shanghai. A minority interest is held by丁佳磊 (Ding Jialei), a Chinese citizen living in Singapore.

 

The Ritz-Carlton Shanghai, Pudong

The Ritz-Carlton Shanghai’s ownership traces back to a company in the British Virgin Islands. Seed capital for the hotel’s immediate owner, 上海新陆一房地产有限公司, is denominated in US Dollars.

 

The Portman Ritz-Carlton, Shanghai

The Portman Ritz-Carlton, Shanghai is part of the Shanghai Centre, a mixed-use development which also includes apartments, offices, and retail.[2] An article from 2001 in the Atlanta Business Chronicle states that ownership of Shanghai Centre was held by Seacliff Ltd., a joint venture between insurance giant American International Group, Japanese construction firm Kajima Corp., hotelier Shangri-La Asia Ltd., and Atlanta developer Portman Holdings.[3]

There is a Seacliff Limited that is currently incorporated in Hong Kong. Seacliff’s board of directors[4] includes executives from Portman Holdings (John C. Portman III),[5] Shangri-La Asia (Lui Man Shing),[6] AIG (John S. Whitaker),[7] and Kajima (Keisuke Koshijima).[8]

Of these four corporations, Shangri-La states it holds a 30% interest in the Ritz-Carlton.[9]

The St. Regis Shanghai Jingan

The Shanghai outpost of the St. Regis brand is split between two groups of owners. Part of the hotel is owned by 光大兴陇信托有限责任公司, a corporation held by four different government entities from across China, including 中国光大集团股份公司, a public bank. The remaining interest traces back to Longtex International Limited, a company headquartered in the British Virgin Islands.

W Shanghai – The Bund

The W Shanghai – The Bund is located in the Sinar Mas Centre. Sinar Mas is an Indonesian conglomerate with holdings in paper products through subsidiary Asia Paper and Pulp (APP).[10] The majority interest in the W Shanghai is held by APP China Holding Limited, headquartered in Mauritius. The remainder is held by HKC (Holdings) Limited, a Chinese property developer headquartered in Bermuda.[11]

Twelve at Hengshan, a Luxury Collection Hotel, Shanghai

Ownership of the Twelve at Hengshan, a hotel in Marriott’s Luxury Collection, is in the hands of 上海市国有资产监督管理委员会, the Shanghai State-owned Assets Supervision and Administration Commission.


The Hongta Hotel, a Luxury Collection Hotel, Shanghai

The Hongta Hotel is owned by 中国烟草总公司 (China Tobacco).

 

[1] Deanna Ting, “Marriott Is Selling More Starwood Properties to Further Its Asset-Light Strategy,” Skift, 4/4/17. https://skift.com/2017/04/04/marriott-is-selling-more-starwood-properties-to-further-its-asset-light-strategy/.

[2] Featured Properties, AIG, retrieved 7/9/18. http://www.aig.com/aig-global-real-estate/featured-properties.

[3] Matt Gove, “Portman seeks fees from partners in Shanghai project,” Atlanta Business Chronicle, 2/19/01. https://www.bizjournals.com/atlanta/stories/2001/02/19/story8.html.

[4] Annual Return for 2017, Seacliff Limited, filed with Hong Kong Companies Registry, 11/08/17.

[5] Profile of John C. Portman III, Portman USA, retrieved 7/10/18. https://www.portmanusa.com/assets/lib/2015/05/19/c08c40e6a952b4e8c818b26ee2883807.pdf.

[6] Corporate Profile, Shangri-La Asia, retrieved 7/10/18. http://www.ir.shangri-la.com/ir/en/asia_corporate_profile.asp.

[7] Our Leadership Team, AIG Global Real Estate, retrieved 7/10/18. http://www.aig.com/aig-global-real-estate/our-leadership-team.

[8] Directors, Officers, Kajima Corporation, retrieved 7/10/18. https://www.kajima.co.jp/english/prof/officers/index.html.

[9] 2017 Annual Report, Shangri-La Hotels, p. 24. http://www.ir.shangri-la.com/ir/en/reports/annualreports/2017/ar2017.pdf.

[10] Business Profile, Sinar Mas Group, 2016. http://www.sinarmas.com/en/images/download/Sinar%20mas%20Business%20profile.pdf.

[11] Annual Report 2017, HKC (Holdings) Limited, pgs. 3 and 11. http://www.hkcholdings.com/attachment/2018041817320200033113667_en.pdf.

何国祥离任万豪是否会阻碍公司在中国的成功之路?

各方分析师已明确表明中国对万豪未来的发展至关重要。 然而,目前该公司在中国却面临着领导真空问题。

何国祥担任大中华区万豪首席执行官至2017年12月。在合并之前,他在喜达屋的亚洲运营一路攀升奋斗了三十多年。[1] 然而,合并后不到两年,何被凯悦挖掘,担任全球运营大中华区总裁。[2]

至今,何留下的空虚未被万豪填补。在他离职后的几个月内,万豪发出了一件具有政治错误的电子邮件调查,引发中国全国各地的愤怒和抵制。

何的离职会怎样影响万豪在中国的发展?

收购喜达屋有助于万豪在中国的发展

分析师把万豪收购喜达屋与该公司在中国的主要增长联系起来。 Shawn Tully在《财富》杂志中写道,“万豪在未来十年将在世界上增长最快的主要酒店市场-中国取得大幅发展,这将可以弥补其在美国市场发展滞后的境况。 在合并之前,万豪在中国和亚洲都相对软肋。归功于喜来登一贯作为顶级全方位服务品牌的地位,旗下的喜达屋相比之下则是该地区全球连锁店的领导者。”[3]

投资者网站Motley Fool的分析师也表达出相同的看法:几乎所有的酒店公司都希望获得中国国内旅游市场,万豪在中国的良好境况至少部分得归功于喜达屋的收购。[4]

何似乎是与万豪在中国发展目标完全契合的最佳人选。 自1981年以来,何一直在喜来登和喜达屋工作,他一路攀升最终继升为亚太区总裁。 [5] 商业新闻网CNBC于2014年10月因何在喜达屋担任亚太区总裁期间的卓越表现授予其最佳旅游商业领袖奖: “在他的领导下,过去三年喜达屋在亚太地区的扩张超过行业增长速度,截至2013年12月,经营酒店数量不断增加。“[6]

万豪选择保留了何,何确在任职16个月后离职

万豪收购喜达屋后宣布了一系列的裁员举措,执行层被裁员最多。 [7] 虽然何被保留聘用为万豪大中华区首席执行官 – [8] 但是他的职务能力确大规模减小。

何在万豪工作期间一个重要里程碑便是与阿里巴巴签署了合作协议。 在2017年期间,万豪大中华区RevPAR(一项关键绩效指标)同比增长8.5%。[9]

尽管如此,在2017年12月何最终还是离开了万豪酒店。他的离职未对外公布。 根据他的领英个人资料上所写,他在接下来的几个月里会“稍作休息一下”。 [10] 截至4月,凯悦已聘请何担任全球运营大中华区总裁。[11]

谁能填补何在万豪的职位空缺?

自从他离职后,万豪还没有替补何的职位。[12] 自2015年起,Craig Smith担任万豪亚太区总裁兼董事总经理,[13] 之前,他曾担任加勒比和拉丁美洲地区万豪酒店总裁两年半时间。Smith在万豪亚太地区最多工作了14年。 [14] 根据《中国日报》的报道,万豪在今年早些时候向中国客户发送了一封政治不敏感的邮件后,Smith对此道歉说:“这是一个巨大的错误,可能是我职业生涯中最大的错误之一。”[15]

FDI Intelligence引用Smith的话说:“我希望我们的中国团队由中国人组成,而不是西方人,因为我们永远不会像中国人那样了解中国。”[16] 2016年11月任命的现任万豪大中华区运营副总裁是Richard Taffs。[17] 在领英资料上,Smith和Taffs斯都没有注明他们有任何中文交流的能力。[18]

在尤为重要的领域,万豪为什么还没有找到替补何所留下的关键空缺? 何的相对快速的离职对公司未来在中国的发展释放出什么信号?

 

[1] Stephen Ho, LinkedIn Profile, retrieved 6/25/18. https://www.linkedin.com/in/stephen-ho-704ab312a/.

[2] “Hyatt Appoints Industry Leader Stephen Ho as President – Greater China, Global Operations,” Hyatt Corporation, 3/14/2018.
http://newsroom.hyatt.com/news-releases?item=123658.

[3] Shawn Tully, “Why Hotel Giant Marriott Is on an Expansion Binge as It Fends Off Airbnb,” Fortune, 6/14/17. http://fortune.com/2017/06/14/marriott-arne-sorenson-starwood-acquisition-airbnb/

[4] Bradley Seth McNew, “Why China Is So Important for Marriott International and Hilton Worldwide,” Motley Fool, 10/12/16. https://www.fool.com/investing/2016/10/12/china-is-still-marriott-and-hiltons-most-important.aspx.

[5] Stephen Ho, LinkedIn Profile, retrieved 6/25/18. https://www.linkedin.com/in/stephen-ho-704ab312a/.

[6] “Region’s Top Travel and Tourism Leader Named at the 2014 CNBC Travel Business Leader Award,” CNBC, 10/28/2014. https://www.cnbc.com/2014/10/28/regions-top-travel-and-tourism-leader-named-at-the-2014-cnbc-travel-business-leader-award.html.

[7] “Starwood Layoffs at Headquarters Are Set to Begin By Year’s End,” Skift, 11/1/2016. https://skift.com/2016/11/01/starwood-layoffs-at-headquarters-are-set-to-begin-by-years-end/.

[8]  Stephen Ho, LinkedIn Profile, retrieved 6/25/18. https://www.linkedin.com/in/stephen-ho-704ab312a/.

[9] Marriott Q1 2018 Investor Factbook, p. K-14. https://marriott.gcs-web.com/static-files/be3e4b14-5761-4a18-aca9-d265589a7403.

[10]  Stephen Ho, LinkedIn Profile, retrieved 6/25/18. https://www.linkedin.com/in/stephen-ho-704ab312a/.

[11] “Hyatt Appoints Industry Leader Stephen Ho as President – Greater China, Global Operations,” Hyatt Corporation, 3/14/2018.
http://newsroom.hyatt.com/news-releases?item=123658.

[12] “Executive Leadership,” Marriott International, retrieved 7/5/2018. http://news.marriott.com/p/executive-leadership/. Compared with the archived version from September 2017, Ho’s former position is not listed on the current version of the site. See also: Restored Website, news.marriott.com/p/executive-leadership/, screen capture 9/6/2017 @ 4:40:18, Internet Archive (Wayback Machine), retrieved 7/5/2018. https://web.archive.org/web/20170916044018/http://news.marriott.com/p/executive-leadership/.

[13] Craig Smith, LinkedIn profile, retrieved 7/16/18. https://www.linkedin.com/in/craig-s-smith-083010a1/.

[14] As of a June 2012 analyst meeting, Smith had been with Marriott in the Asia-Pacific region for 8 years. (Marriott International Security Analyst Meeting Transcript, 6/19/18, p. 33. https://marriott.gcs-web.com/static-files/3f085930-b296-46a2-ad4a-f6aa957aa654). According to Smith’s LinkedIn, he served as President of the Carribbean and Latin America region from January 2013 to May 2015, after which he returned to Asia Pacific. (Craig Smith, LinkedIn profile, retrieved 7/16/18. https://www.linkedin.com/in/craig-s-smith-083010a1/)

[15] Xu Junqian, “Marriott announces ‘rectification plan’ to regain trust,” China Daily, 1/18/18. http://www.chinadaily.com.cn/a/201801/18/WS5a600374a310e4ebf433e9ac.html.

[16] Natasha Turak, “View from the C-Suite: Marriott finds Marriott finds China’s middle ground,” FDI Intelligence, 12/14/17. https://www.fdiintelligence.com/Sectors/Hotels-Tourism/View-from-the-C-Suite-Marriott-finds-Marriott-finds-China-s-middle-ground.

[17] Richard Taffs, LinkedIn Profile, retrieved 7/16/18. https://www.linkedin.com/in/richard-taffs-45309a18

[18] Craig Smith, LinkedIn profile, retrieved 7/16/18. https://www.linkedin.com/in/craig-s-smith-083010a1/; Richard Taffs, LinkedIn Profile, retrieved 7/16/18. https://www.linkedin.com/in/richard-taffs-45309a18

Does Stephen Ho’s departure from Marriott hinder the company’s ability to succeed in China?

Analysts have made it clear how critical China is to Marriott’s future. However, currently the company faces a leadership vacuum in that country.

Stephen Ho served as the CEO of Greater China for Marriott until December 2017. Prior to the merger he had spent more than three decades rising through the ranks of Starwood’s Asian operations.[1] However, less than two years after the merger, Ho was scooped up by Hyatt to serve as President – Greater China, Global Operations.[2]

Ho has not been replaced. Within a few months of his departure, the company sent out a politically incorrect email survey, inciting outrage across China.

How does Ho’s departure square with Marriott’s imperative to grow in China?

Marriott’s acquisition of Starwood was supposed to assist growth in China

Analysts have connected Marriott’s purchase of Starwood with the company’s major growth in China. Writing in Fortune, Shawn Tully pointed out, “Marriott, however, could compensate for a U.S. slowdown with gigantic growth in what will, over the next decade, be the world’s fastest-growing major hotel market: China. Prior to the merger, Marriott was relatively weak both in China and across Asia. Starwood, by contrast, was the leader in the region among global chains, thanks to Sheraton’s long-standing position as a top full-service brand.”[3]

An analyst for investor website Motley Fool sounded the same themes: arguing that while virtually every lodging company hoped to get a piece of the Chinese domestic tourist market, Marriott’s good positioning in China was at least partly attributable to the Starwood purchase.[4]

Ho would seem to be a natural fit with Marriott’s goal of growing in China. Ho climbed through the ranks of Sheraton and Starwood since 1981 to become President of Asia Pacific.[5] The business news network CNBC awarded Ho its Travel Business Leader of the Year in October 2014 for his success as President of Starwood Asia Pacific: “Under his leadership, Starwood’s expansion in Asia Pacific has outpaced the industry with new hotel openings over the last three years and growing the number of operating hotels as of December 2013.”[6]

Marriott retained Ho, only to see him leave after 16 months

The acquisition of Starwood by Marriott was followed by the announcement by Marriott of a series of lay-offs of former Starwood employees, with most of the job cuts at the executive level.[7] Although Ho was retained, he was appointed Marriott’s CEO Greater China[8] – a significant narrowing of his portfolio.

A significant milestone of Ho’s tenure with Marriott was the partnership agreement signed with Alibaba. Over the course of 2017, Marriott’s Greater China RevPAR (a key performance metric) grew 8.5% year over year.[9]

Nonetheless, Ho left Marriott in December 2017. His departure was not announced. He spent the next months “Taking a Break,” according to his LinkedIn profile.[10] By April, Hyatt had hired Ho to serve as President – Greater China, Global Operations.[11]

Can anyone fill Ho’s shoes at Marriott?

Since his departure, Ho’s former position has not been filled by Marriott.[12] Marriott’s President and Managing Director for Asia Pacific, Craig Smith, previously served for two and a half years as President of Marriott’s Caribbean and Latin American region before moving to his current role in 2015.[13] Smith has served for Marriott for at most 14 years in Asia-Pacific.[14] After Marriott sent out a politically insensitive email to Chinese customers earlier this year, Smith apologized for the incident, according to China Daily: “This is a huge mistake, probably one of the biggest in my career.”[15]

Smith was quoted in FDI Intelligence stating, “I want our China team to be Chinese, not Westerners running it, because we will never understand China like the Chinese.”[16] The current Vice President of Operations – Greater China for Marriott is Richard Taffs, appointed in November 2016.[17] Neither Smith nor Taffs have stated that they have any fluency in Chinese in their LinkedIn profiles.[18]

Why hasn’t Marriott found a replacement for Ho’s key role in a key region? What does his relatively quick departure signal about the company’s future in China?

 

[1] Stephen Ho, LinkedIn Profile, retrieved 6/25/18. https://www.linkedin.com/in/stephen-ho-704ab312a/.

[2] “Hyatt Appoints Industry Leader Stephen Ho as President – Greater China, Global Operations,” Hyatt Corporation, 3/14/2018.
http://newsroom.hyatt.com/news-releases?item=123658.

[3] Shawn Tully, “Why Hotel Giant Marriott Is on an Expansion Binge as It Fends Off Airbnb,” Fortune, 6/14/17. http://fortune.com/2017/06/14/marriott-arne-sorenson-starwood-acquisition-airbnb/

[4] Bradley Seth McNew, “Why China Is So Important for Marriott International and Hilton Worldwide,” Motley Fool, 10/12/16. https://www.fool.com/investing/2016/10/12/china-is-still-marriott-and-hiltons-most-important.aspx.

[5] Stephen Ho, LinkedIn Profile, retrieved 6/25/18. https://www.linkedin.com/in/stephen-ho-704ab312a/.

[6] “Region’s Top Travel and Tourism Leader Named at the 2014 CNBC Travel Business Leader Award,” CNBC, 10/28/2014. https://www.cnbc.com/2014/10/28/regions-top-travel-and-tourism-leader-named-at-the-2014-cnbc-travel-business-leader-award.html.

[7] “Starwood Layoffs at Headquarters Are Set to Begin By Year’s End,” Skift, 11/1/2016. https://skift.com/2016/11/01/starwood-layoffs-at-headquarters-are-set-to-begin-by-years-end/.

[8]  Stephen Ho, LinkedIn Profile, retrieved 6/25/18. https://www.linkedin.com/in/stephen-ho-704ab312a/.

[9] Marriott Q1 2018 Investor Factbook, p. K-14. https://marriott.gcs-web.com/static-files/be3e4b14-5761-4a18-aca9-d265589a7403.

[10]  Stephen Ho, LinkedIn Profile, retrieved 6/25/18. https://www.linkedin.com/in/stephen-ho-704ab312a/.

[11] “Hyatt Appoints Industry Leader Stephen Ho as President – Greater China, Global Operations,” Hyatt Corporation, 3/14/2018.
http://newsroom.hyatt.com/news-releases?item=123658.

[12] “Executive Leadership,” Marriott International, retrieved 7/5/2018. http://news.marriott.com/p/executive-leadership/. Compared with the archived version from September 2017, Ho’s former position is not listed on the current version of the site. See also: Restored Website, news.marriott.com/p/executive-leadership/, screen capture 9/6/2017 @ 4:40:18, Internet Archive (Wayback Machine), retrieved 7/5/2018. https://web.archive.org/web/20170916044018/http://news.marriott.com/p/executive-leadership/.

[13] Craig Smith, LinkedIn profile, retrieved 7/16/18. https://www.linkedin.com/in/craig-s-smith-083010a1/.

[14] As of a June 2012 analyst meeting, Smith had been with Marriott in the Asia-Pacific region for 8 years. (Marriott International Security Analyst Meeting Transcript, 6/19/18, p. 33. https://marriott.gcs-web.com/static-files/3f085930-b296-46a2-ad4a-f6aa957aa654). According to Smith’s LinkedIn, he served as President of the Carribbean and Latin America region from January 2013 to May 2015, after which he returned to Asia Pacific. (Craig Smith, LinkedIn profile, retrieved 7/16/18. https://www.linkedin.com/in/craig-s-smith-083010a1/)

[15] Xu Junqian, “Marriott announces ‘rectification plan’ to regain trust,” China Daily, 1/18/18. http://www.chinadaily.com.cn/a/201801/18/WS5a600374a310e4ebf433e9ac.html.

[16] Natasha Turak, “View from the C-Suite: Marriott finds Marriott finds China’s middle ground,” FDI Intelligence, 12/14/17. https://www.fdiintelligence.com/Sectors/Hotels-Tourism/View-from-the-C-Suite-Marriott-finds-Marriott-finds-China-s-middle-ground.

[17] Richard Taffs, LinkedIn Profile, retrieved 7/16/18. https://www.linkedin.com/in/richard-taffs-45309a18

[18] Craig Smith, LinkedIn profile, retrieved 7/16/18. https://www.linkedin.com/in/craig-s-smith-083010a1/; Richard Taffs, LinkedIn Profile, retrieved 7/16/18. https://www.linkedin.com/in/richard-taffs-45309a18

阿里巴巴将如何影响万豪和北京的关系?

电子商务巨头阿里巴巴已准备在万豪在中国的营销战略中发挥核心作用,期望最终将接管万豪的中文网站和应用程序。[1]  在分析师问询万豪的2018年第一季度收益结果时,首席执行官Arne Sorenson对商务合作愿景充满了热情:“我们认为我们可以为5000万阿里巴巴的中国会员提供真正的价值,亦能给我们带来巨大的成果,这将会是互利双方的成功。”[2]

但过去四年,阿里巴巴集团和中国政府之间的关系却被冲突所标记。这将如何影响万豪与中国政府的关系?

中国监管机构对阿里巴巴多次采取行动

阿里巴巴的执行主席马一直被西方媒体描述为中国政府的支持者。 据Bloomberg报道,马云赞扬过中国一党制的稳定性,并对中国政府严格控制互联网举措表示支持。[3]

然而,中国政府监管机构曾对阿里巴巴集团,其相关业务,和两个阿里巴巴主要投资者采取多项措施。

2015年,USA Today报道,中国国家工商总局发布一份关于阿里巴巴的淘宝网的报告。报告称工商总局的检查员发现淘宝网上的假冒商品比真品更多。[4]

《华尔街日报》报道,在国家工商总局的调查结果公布后,淘宝网曾回应:“工商总局网监司司长刘红亮在监管过程中程序失当、情绪执法,用错误的方式得到的一个不客观的结论,对淘宝及中国电子商务从业者造成了非常严重的负面影响”。[5]

国家工商总局局长会见了马云,据《中国日报》报道。马云表示:“我们一直致力于打击假货,并全力以赴解决假货难题。下一步,阿里公司将积极配合政府部门,加大资金、技术等方面的投入,进一步扩大和加强原有专业打假团队,加强日常线上巡查和抽检,与执法部门共同联手,切实有效地解决现实问题。”[6] 同一天,国家工商总局淡化了报告的重要性。[7]

从那以后,阿里巴巴的销售行为收到中国政府机构多次审查:

  • 2016年3月,中国中央电视台CCTV播放了一部关于淘宝“订单骗局”的纪录片,片中描述卖家会花钱请人订购假订单,以提高他们在电子商务平台上的排名。[8]
  • 《中国日报》在同月报道,在一家国有广播电台报道阿里巴巴允许不合格的供应商通过其平台销售食品后,上海市食品药品监督管理局和成都市食品药品监督管理局分别宣布对阿 [9]
  • 2017年8月,路透社报道称,中国当局已向淘宝网发出警告,禁止出售允许用户绕过国家审查控制的非法虚拟专用网络。[10]

马云和赵薇

2017年12月,中国政府对女演员赵薇和她的丈夫黄有龙作出处罚。两位是马云的商业伙伴亦是阿里巴巴投资人。 据《彭博社》报道,赵被禁止在内地股市交易五年,赵,黄和他们控制的公司被罚款120万元(约合15万美元)。[11] 该处罚发生在赵薇和黄有龙失败收购一家杭州动画公司的少数股权之后。[12]

据《英国金融时报》的报道,马云在国家对这对夫妇的处罚后与他们保持距离:“马先生上周试图与赵女士保持距离,并告诉当地媒体,他跟赵会面不超过10次。” [13] 尽管这对夫妇在2014年购买了阿里巴巴影业9%的股份,而且黄与马云合作收购了投资银行瑞东集团(后者现在被称为云峰金融)。[14] 据《苹果日报》报道,马云和赵至少见过18次,但在收购失败后,两人在公开场合只见过两次。 [15] 《亚洲时报》称,根据阿里巴巴集团授权和出版的一本名为《马云和他的朋友们》的书,在赵拍摄影片期间马云曾访问过赵,并参加过了赵的祖父的生日聚会。[16]

这对万豪意味着什么?

2016年3月,Business Insider在一篇文章声称,根据前面提到的一些事件,“中国政府正在悄无声息地反对阿里巴巴。”[17]

阿里巴巴是万豪在中国拓展业务的关键:万豪的中文网站缺乏直接预订功能,预定则用其主页把用户引导至阿里巴巴旅游网站飞猪的万豪页面。[18] 万豪首席商务官Stephanie Linnartz表示,阿里巴巴最终将接管万豪中文网站和应用程序。[19]

那阿里巴巴与中国政府的关系对万豪到底意味着什么?

 

[1] “Marriott set to woo Chinese tourists with Alibaba deal,” Reuters, 8/7/17. https://www.reuters.com/article/us-marriott-intnl-alibaba/marriott-set-to-woo-chinese-tourists-with-alibaba-deal-idUSKBN1AN1JN

[2] First Quarter 2018 Earnings Conference Call Transcript, Marriott International, 5/9/18, p.16. https://marriott.gcs-web.com/static-files/0eae8e59-7bad-4991-881d-b2778424c00f , p. 16

[3] “Alibaba’s Ma Says China Benefits From Stability of One Party,” Bloomberg, 12/5/17. https://www.bloomberg.com/news/articles/2017-12-06/alibaba-s-ma-argues-china-benefits-from-stability-of-one-party

[4] Calum McLeod, “As Alibaba battles Beijing, Chinese hope to curb fakes,” USA Today, 1/29/15. https://www.usatoday.com/story/tech/2015/01/29/alibaba-china-beijing-saic/22532629/

[5] Carlos Tejada, “China Raps Alibaba for Fakes,” Wall Street Journal, 1/28/15. https://www.wsj.com/articles/chinas-saic-criticizes-alibaba-over-fake-goods-1422425378

[6] “China’s commerce regulator meets Alibaba chairman Jack Ma,” China Daily, 1/31/15. http://www.chinadaily.com.cn/business/tech/2015-01/31/content_19456693.htm

[7] “Alibaba meets with China regulator, controversial report retracted,” Reuters, 1/30/15. https://www.reuters.com/article/us-alibaba-group-saic/alibaba-meets-with-china-regulator-controversial-report-retracted-idUSKBN0L31S020150130

[8] Kathy Chu and  Laurie Burkitt, “Chinese Broadcaster Raps Fake Sales on Alibaba That Pump Up Shop Rankings,” Wall Street Journal, 3/16/16. https://www.wsj.com/articles/china-cctv-raps-fake-sales-on-alibaba-that-pump-up-shop-rankings-1458132816

[9] Meng Jing, “Unwelcome spotlight falls on food delivery app Ele.me,” China Daily, 3/17/16. http://www.chinadaily.com.cn/business/2016-03/17/content_23903039.htm

[10] Cate Cadell, “China targets Alibaba’s Taobao, other e-commerce sites, in VPN crackdown,” Reuters, 8/17/17. https://www.reuters.com/article/us-china-censorship-vpn/china-targets-alibabas-taobao-other-e-commerce-sites-in-vpn-crackdown-idUSKCN1AX0KX

[11] “China Bans Actress Zhao Wei From Stock Trading for Five Years,” Bloomberg, 11/9/17. https://www.bloomberg.com/news/articles/2017-11-10/china-bans-actress-zhao-wei-from-stock-trading-for-five-years

[12] Patrick Frater, “Chinese Actress Vicky Zhao, Fined For Stock Manipulation, Risks Lawsuit,” Variety, 11/16/17. http://variety.com/2017/biz/asia/chinese-actress-vicky-zhao-stock-manipulation-lawsuit-risk-1202616317/

[13] Gabriel Wildau, “Beijing makes example of A-lister after failed takeover,” Financial Times, 12/11/17. https://www.ft.com/content/fcd1501a-dbca-11e7-a039-c64b1c09b482

[14] Gabriel Wildau, “Beijing makes example of A-lister after failed takeover,” Financial Times, 12/11/17. https://www.ft.com/content/fcd1501a-dbca-11e7-a039-c64b1c09b482

[15] “趙薇醜聞纏⾝身 ⾺馬雲割席,” Apple Daily, 12/8/17. https://hk.news.appledaily.com/international/daily/article/20171208/20238184

[16] Ben Kwok, “Is Jack Ma cutting ties with Chinese actress Zhao Wei?,” Asia Times, 12/11/17. http://www.atimes.com/article/jack-ma-cutting-ties-chinese-actress-zhao-wei/

[17] Linette Lopez, “There are signs China is turning against Alibaba,” Business Insider, 3/21/16. https://www.businessinsider.sg/china-turns-against-alibaba-2016-3/

[18] Marriott International, retrieved April 30th, 2018, http://www.marriott.com.cn/reservation.html

[19] “Marriott set to woo Chinese tourists with Alibaba deal,” Reuters, 8/7/17. https://www.reuters.com/article/us-marriott-intnl-alibaba/marriott-set-to-woo-chinese-tourists-with-alibaba-deal-idUSKBN1AN1JN

Will Alibaba Smooth or Complicate Marriott’s Relationship with Beijing?

The e-commerce giant Alibaba is poised to take a central role in Marriott’s marketing strategy in China, with the expectation that it will eventually take over Marriott’s Chinese-language websites and app.[1] On the analyst call for Marriott’s 1Q18 earnings results, CEO Arne Sorenson was effusive about his hopes for the partnership: “We think we can deliver real value to Alibaba’s Chinese membership, about 500 million strong, and we can drive great results for us and it should be successful for both of us.”[2]

But the relationship between Alibaba and the Chinese government has been marked by conflicts between Alibaba, Executive Chairman Jack Ma, close affiliates, and the government over the past 4 years. How will this affect Marriott’s relationship with the Chinese government?

Chinese Regulators Repeatedly Took Action Against Alibaba

Alibaba’s Executive Chairman, Jack Ma, has been portrayed in the Western press as a supporter of the Chinese government. According to Bloomberg, Ma praised the stability of China’s one-party system and spoke out in support of the government’s tight control of the internet.[3]

However, government regulators have taken several measures against Alibaba, its related businesses, and two major Alibaba investors.

In 2015, USA Today reported that inspectors from the State Administration for Industry and Commerce (SAIC), a central business regulator in China, had claimed that they found more fake than genuine merchandise on Alibaba’s online marketplace, Taobao.com.[4]

After the release of SAIC’s findings, the Wall Street Journal reported that Taobao responded with a statement that charged, “We believe director Liu Hongliang’s procedural misconduct during the supervision process, irrational enforcement of the law and obtaining a biased conclusion using the wrong methodology has inflicted irreparable and serious damage to Taobao and Chinese online businesses.”[5]

The head of the SAIC met with Jack Ma. According to China Daily, Ma stated, “Alibaba has always been engaging in combating fake products to crack the hard nut. Next, Alibaba will actively cooperate with the government, devote more capital and technology and further expand its professional team for fighting fakes.”[6]  The same day, the SAIC downplayed the significance of its report.[7]

Since then, Alibaba’s sale practices have been scrutinized multiple times by government agencies in China:

  • In March 2016, the state-owned TV station CCTV ran a documentary on the practice of ‘brushing’ on Taobao, where sellers would pay people to place fake orders to boost their standing on the e-commerce platform.[8]
  • In the same month, China Daily reported that food and drug administrations in both Shanghai and Chengdu announced they had launched investigations against Alibaba’s online food ordering service after a state broadcaster reported that it allowed unqualified vendors to sell food through the platform.[9]
  • In August 2017, Reuters reported that Chinese authorities had issued Taobao.com a warning over the sale of illegal virtual private networks that allow users to skirt state censorship controls. [10]

Jack Ma and Wei Zhao

In December 2017, Chinese actress Wei Zhao and her husband Youlong Huang, business partners of Jack Ma and Alibaba investors, were the subjects of regulatory action by the Chinese government. Bloomberg reported that Zhao received a five-year ban from trading in the mainland stock market, and that Zhao, Huang, and the company they control were fined 1.2 million yuan (around USD $150,000).[11] The penalty followed from a failed acquisition of a minority stake in a Hangzhou-based animation firm.[12]

Jack Ma distanced himself from the couple following the sanction, according to the Financial Times: “But Mr Ma sought to distance himself from Ms Zhao last week, telling local media that he has met the actress ‘no more than 10 times’.”[13] This was despite the fact that couple bought a 9 percent stake in Alibaba Pictures in 2014, and Huang partnered with Ma in the acquisition of the investment bank Reorient Group, now known as Yunfeng Financial.[14] Apple Daily reported that Ma and Zhao had met for at least 18 times, but the two was seen in public together only twice after the failed takeover.[15] Asia Times stated that according to a book titled Jack Ma and his friends, authorized and published by the Alibaba Group, Ma visited Zhao when the latter was filming, and attended Zhao’s grandfather’s birthday party.[16]

What does this mean for Marriott?

In a March 2016 article, Business Insider asserted, based on some of the stories previously mentioned, “Quietly, the Chinese government is turning against Alibaba.”[17]

Alibaba is key to Marriott’s outreach in China: Marriott’s Chinese-language website lacks a direct-booking feature, but instead directs users to Marriott’s page on Alibaba’s travel website, Fliggy.[18] Marriott CCO Stephanie Linnartz has stated that Alibaba will eventually take over Marriott’s Chinese-language websites and app. [19]

What does Alibaba’s relationship with the Chinese government mean for Marriott?

 

 

[1] “Marriott set to woo Chinese tourists with Alibaba deal,” Reuters, 8/7/17. https://www.reuters.com/article/us-marriott-intnl-alibaba/marriott-set-to-woo-chinese-tourists-with-alibaba-deal-idUSKBN1AN1JN

[2] First Quarter 2018 Earnings Conference Call Transcript, Marriott International, 5/9/18, p.16. https://marriott.gcs-web.com/static-files/0eae8e59-7bad-4991-881d-b2778424c00f , p. 16

[3] “Alibaba’s Ma Says China Benefits From Stability of One Party,” Bloomberg, 12/5/17. https://www.bloomberg.com/news/articles/2017-12-06/alibaba-s-ma-argues-china-benefits-from-stability-of-one-party

[4] Calum McLeod, “As Alibaba battles Beijing, Chinese hope to curb fakes,” USA Today, 1/29/15. https://www.usatoday.com/story/tech/2015/01/29/alibaba-china-beijing-saic/22532629/

[5] Carlos Tejada, “China Raps Alibaba for Fakes,” Wall Street Journal, 1/28/15. https://www.wsj.com/articles/chinas-saic-criticizes-alibaba-over-fake-goods-1422425378

[6] “China’s commerce regulator meets Alibaba chairman Jack Ma,” China Daily, 1/31/15. http://www.chinadaily.com.cn/business/tech/2015-01/31/content_19456693.htm

[7] “Alibaba meets with China regulator, controversial report retracted,” Reuters, 1/30/15. https://www.reuters.com/article/us-alibaba-group-saic/alibaba-meets-with-china-regulator-controversial-report-retracted-idUSKBN0L31S020150130

[8] Kathy Chu and  Laurie Burkitt, “Chinese Broadcaster Raps Fake Sales on Alibaba That Pump Up Shop Rankings,” Wall Street Journal, 3/16/16. https://www.wsj.com/articles/china-cctv-raps-fake-sales-on-alibaba-that-pump-up-shop-rankings-1458132816

[9] Meng Jing, “Unwelcome spotlight falls on food delivery app Ele.me,” China Daily, 3/17/16. http://www.chinadaily.com.cn/business/2016-03/17/content_23903039.htm

[10] Cate Cadell, “China targets Alibaba’s Taobao, other e-commerce sites, in VPN crackdown,” Reuters, 8/17/17. https://www.reuters.com/article/us-china-censorship-vpn/china-targets-alibabas-taobao-other-e-commerce-sites-in-vpn-crackdown-idUSKCN1AX0KX

[11] “China Bans Actress Zhao Wei From Stock Trading for Five Years,” Bloomberg, 11/9/17. https://www.bloomberg.com/news/articles/2017-11-10/china-bans-actress-zhao-wei-from-stock-trading-for-five-years

[12] Patrick Frater, “Chinese Actress Vicky Zhao, Fined For Stock Manipulation, Risks Lawsuit,” Variety, 11/16/17. http://variety.com/2017/biz/asia/chinese-actress-vicky-zhao-stock-manipulation-lawsuit-risk-1202616317/

[13] Gabriel Wildau, “Beijing makes example of A-lister after failed takeover,” Financial Times, 12/11/17. https://www.ft.com/content/fcd1501a-dbca-11e7-a039-c64b1c09b482

[14] Gabriel Wildau, “Beijing makes example of A-lister after failed takeover,” Financial Times, 12/11/17. https://www.ft.com/content/fcd1501a-dbca-11e7-a039-c64b1c09b482

[15] “趙薇醜聞纏⾝身 ⾺馬雲割席,” Apple Daily, 12/8/17. https://hk.news.appledaily.com/international/daily/article/20171208/20238184

[16] Ben Kwok, “Is Jack Ma cutting ties with Chinese actress Zhao Wei?,” Asia Times, 12/11/17. http://www.atimes.com/article/jack-ma-cutting-ties-chinese-actress-zhao-wei/

[17] Linette Lopez, “There are signs China is turning against Alibaba,” Business Insider, 3/21/16. https://www.businessinsider.sg/china-turns-against-alibaba-2016-3/

[18] Marriott International, retrieved April 30th, 2018, http://www.marriott.com.cn/reservation.html

[19] “Marriott set to woo Chinese tourists with Alibaba deal,” Reuters, 8/7/17. https://www.reuters.com/article/us-marriott-intnl-alibaba/marriott-set-to-woo-chinese-tourists-with-alibaba-deal-idUSKBN1AN1JN

签署万枫协议后,万豪精选服务酒店合作伙伴寻求其他商务交易(精选服务增长,第2部分)

在上一篇文章中,我们讨论了万豪如何与中国东呈国际达成协议,以扩大万枫中国精选服务品牌。万豪的交易是在希尔顿与铂涛酒店达成助长汉普顿品牌的协议两年后签订,而且万豪交易提议发展的酒店数量远少于希尔顿交易提议发展的酒店数量。

东呈国际有两点尤为引人注意。 虽然它在过去几年里有所增长,但东呈国际比铂涛集团及其母公司小几倍。 此外,自与万豪签署万枫协议以来,东呈一直在中国寻求其他开发协议,并宣布有意扩展欧洲市场。

东呈有什么能力同时在中国扩展万枫品牌并追求其他商务发展交易?

东呈国际集团被希尔顿的合作伙伴铂涛集团超越

希尔顿在汉普顿开发计划中的合作伙伴铂涛集团在酒店客房方面远远超过了万豪的合作伙伴东呈国际

希尔顿和铂涛集团签署了汉普顿开发协议的2014年,Hotels Mag将铂涛集团评为拥有442,490间客房的全球第7大连锁酒店。 东呈国际(前称为东方皇冠集团)排名第38位,拥有33,863间客房。[1]

2015年,铂涛集团合并为锦江国际,成为中国最大的酒店公司。 根据合并协议,铂涛集团将继续独立经营其品牌。[2] 到2016年,锦江已成为全球第五大酒店,拥有602,350间客房。[3] 同年,东方皇冠改名为东呈 [4]并在全球酒店排名榜上上升至23位,共有70,865间客房。[5]

东呈的其他发展计划:新置中国物业和进军欧洲市场。

东呈国际集团在2016年2月与万豪签署万枫开发协议后,宣布了其他发展计划。

2017年5月,东呈与泰国酒店都喜国际签署协议,在中国境内以都喜公主品牌经营40家品牌度假村和住宅。 东呈的目标是在未来五年内在中国各地签署至少40套都喜公主酒店,预计在2022年之前有27处酒店对外营业。[6] 都喜在其网站上列出了在中国现已开业的5个酒店,还有5个酒店正在开发中。[7]

东呈还宣布了向欧洲进行大规模扩张的计划。 首席执行官赵汉森表示,扩张欧洲市场将是东呈为奠定中国第五大酒店地位的核心努力。[8]

东呈将如何在中国同时扩展万枫品牌并追求其他发展交易?

 

[1] “Hotels 325,” Hotels Mag, July/August 2015.

[2] “Jin Jiang completes merger with Plateno,” Hotel News Now, 10/2/15. http://hotelnewsnow.com/articles/27985/Jin-Jiang-completes-merger-with-Plateno.

[3] “Hotels 325,” Hotels Mag, July/August 2017.

[4] Jeremy Tredinnick, “Dossen Hotel Group plans global expansion,” Business Traveler, 11/8/16. https://www.businesstraveller.com/accommodation/2016/11/08/dossen-hotel-group-plans-global-expansion/.

[5] “Hotels 325,” Hotels Mag, July/August 2017.

[6] “Dusit International forms strategic partnership with Dossen International Group in China,” Dusit International (press release), 5/23/17. http://dtc.listedcompany.com/newsroom/20170523-dtc-news1-en.pdf.

[7] See Opened hotels, Dusit International, retrieved 3/26/18. https://www.dusit.com/findahotel?status=opened; and Development hotels, Dusit Internaitonal, retrieved 3/26/18. https://www.dusit.com/findahotel?status=coming-soon.

[8] Terence Baker, “China’s Dossen embarks on midscale, European push,” Hotel News Now, 3/21/17. http://hotelnewsnow.com/Articles/126606/Chinas-Dossen-embarks-on-midscale-European-push.