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.

Marriott’s Select Service Partner Pursued Other Deals After Signing Fairfield Agreement (Select Service Growth in China, Part 2)

(Signing ceremony from Marriott press release, 9/13/16)

In a previous post, we discussed how Marriott made a deal with Chinese hotel company Dossen to expand the select service Fairfield brand in China. We explained that Marriott’s deal came nearly two years after a similar deal made by Hilton with Plateno Hotels to grow the Hampton brand, and that the Marriott deal proposed far fewer hotels than the Hilton deal.

Two other concerning features about Dossen stand out. Although it has grown in the past few years, Dossen is several times smaller than Plateno and its parent. In addition, since signing the Fairfield agreement with Marriott, Dossen has pursued other development deals in China and announced its intention to expand to Europe.

What capacity does Dossen have to simultaneously expand the Fairfield brand in China and pursue other development deals?

Dossen outstripped by Hilton’s partner Plateno

Hilton’s partner in its Hampton development plan, Plateno, far outstripped Marriott’s partner, Dossen, in terms of hotel rooms.

In 2014, the year that Hilton and Plateno signed their Hampton development deal, Hotels Mag ranked Plateno as the world’s 7th largest hotel chain, with 442,490 rooms. Dossen (then known as Eastern Crown) was ranked at 38, with 33,863 rooms.[1]

In 2015, Plateno merged into Jin Jiang International, forming China’s largest hotel company. Under the merger agreement, Plateno would continue to operate its brands independently.[2] By 2016, Jin Jiang had become the 5th largest global hotel company at 602,350 rooms.[3] That year, Eastern Crown renamed itself Dossen[4] and had moved up to 23 on the global hotel rankings list with 70,865 rooms. [5]

Dossen’s Other Development Plans: New Properties in China, and Expansion to Europe

After signing the Fairfield development deal with Marriott in February 2016, Dossen has announced other development plans.

In May 2017, Dossen signed a deal with Dusit International, a Thai hotelier, to operate 40 branded resorts and residences under the Dusit Princess label across China. Dossen aimed to sign at least 40 DusitPrincess properties throughout China within the next five years, with 27 properties expected to open before 2022.[6] On its website, Dusit listed 5 open properties in China, and another 5 under development.[7]

Dossen has also announced plans for a major expansion into Europe. CEO Hansen Zhao stated that the European expansion would be at the center of a push to make Dossen China’s fifth-largest hotel company.[8]

How will Dossen simultaneously expand the Fairfield brand in China and pursue other development deals?

 

[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.

论中国精选服务酒店商业合作协议和目标发展量,万豪均逊色于希尔顿 (中国精选服务业增长,第一部分)

2017年3月,万豪执行副总裁兼全球发展官Tony Capuano告诉投资者,国际精选服务可能是公司未来房间增长最具吸引力的机会之一。[1] 万豪在世界上人口最多的国家-中国发展精选服务是决定国际精选服务增长的核心。

2016年,万豪签署协议,决定在中国发展其万枫酒店精选服务品牌。 使用当地酒店连锁集团为合作伙伴与希尔顿为发展其汉普顿品牌所做出的类似商务交易如出一辙。 然而,万豪的交易是在希尔顿酒店交易达成的两年后,而且,希尔顿提议发展的酒店的数量超过万豪酒店提议数量的两倍。

这样的差距对万豪中国精选服务业增长前景释放出什么样的信号?

通过与中国最大的经济品牌合作,汉普顿品牌得以迅猛扩张。

2014年10月,希尔顿宣布与铂涛集团签署了一项授权协议,以在中国开发汉普顿品牌。[2] 据希尔顿集团称,铂涛集团在中国300个城市拥有3,000多家酒店,以及拥有8000万会员的中国最大的酒店忠诚度计划。[3] 在一份2016年发布的新闻稿件中,希尔顿表示该公司计划在十年内开张400个汉普顿酒店。[4]

自2015年12月开设第一家酒店以来,希尔顿汉普顿的数量级在急速增长,[5] 现希尔顿在其网站上已列出了29个中国汉普顿酒店。[6] 2018年3月,希尔顿和铂涛集团宣布他们已在中国签署了第200家酒店协议。[7] 希尔顿宣布,预计2018年将在中国另开业50家汉普顿酒店。[8]

中国万豪万枫酒店的屏幕截图,5/31/18 [9]

中国希尔顿汉普顿酒店的房产截屏,5/31/18。[10] 数字表明每个地点的汉普顿酒店数量。

万豪以寻求商业合作来建立万枫酒店品牌的战略与希尔顿的品牌交易如出一辙,但目标没有那么雄心勃勃。2016年2月,万豪宣布与东呈国际集团(前身为东方皇冠酒店集团)达成开发协议,协议联手在中国引进“Fairfield by Marriott®”(万枫) 酒店品牌。 该协议的目标是在五年内签署140家酒店,其中100家预计将于2021年开业。[11]

第一家万枫酒店于2017年7月开业。[12] 12月,万豪表示,另有8家万枫酒店计划在2018年在中国开业。[13] 截至2018年5月,三家已开业的万枫酒店已列在万豪网站上,还有另外一家酒店待6月开业[14]

万枫酒店发展落后于汉普顿酒店弥合差距的计划是什么?

根据希尔顿和万豪宣布的品牌目标,汉普顿将继续拥有比万枫更大的影响力。

投资者应当询问以下有关万豪在中国的精选服务增长的问题:

  • 为什么万豪等待两年才建立类似希尔顿交易的商业伙伴路径?
  • 为什么万豪酒店预计发展的万枫酒店数量远低于希尔顿预计发展的汉普顿酒店数量?
  • 万豪将为其在中国的另一个服务品牌寻求类似的合作协议吗?

 

[1] Transcript of 2017 Security Analyst Meeting, Marriott International, 3/21/17, p. 37. http://files.shareholder.com/downloads/MAR/4828073936x0x935483/44036211-62F7-4112-80D6-E1218E591E06/MAR_SAM_Transcript_FINAL_3-21-17.pdf.

[2] “Hilton Worldwide Signs Exclusive License Agreement for Major Expansion Of Hampton By Hilton Hotels In China,” Hilton Worldwide, 10/30/14 (from Google Cache, page cached 5/28/18). http://webcache.googleusercontent.com/search?q=cache:NRE0BAqa8MgJ:newsroom.hilton.com/index.cfm/news/hilton-worldwide-signs-exclusive-

[3] “Hilton Worldwide Signs Exclusive License Agreement for Major Expansion Of Hampton By Hilton Hotels In China,” Hilton Worldwide, 10/30/14 (from Google Cache, page cached 5/28/18). http://webcache.googleusercontent.com/search?q=cache:NRE0BAqa8MgJ:newsroom.hilton.com/index.cfm/news/hilton-worldwide-signs-exclusive-

[4] “Hampton by Hilton Expands in China” [Infographic], retrieved 4/23/18. http://newsroom.hilton.com/assets/HAMP/images/newsroom/2016/Q1/Mar/HamptonChinaInfographic_HR.jpg. Infographic accessed from “Hampton By Hilton Opens Flagship Hotel In China,” Hilton News Room, 3/25/16. http://newsroom.hilton.com/index.cfm/news/hampton-by-hilton-opens-flagship-hotel-in-china.

[5] “The Hampton By Hilton China Story,” Hampton by Hilton Global Media Center, retrieved 4/23/18. http://news.hampton.com/index.cfm/misc/china.

[6] Profiles of Hampton China properties, retrieved 5/31/18. http://newsroom.hilton.com/hampton/properties.

[7] “Hilton and Plateno Reach Major Milestone for Future Hampton by Hilton Hotels in China,” PR Newswire, 3/21/18. https://en.prnasia.com/releases/apac/hilton-and-plateno-reach-major-milestone-for-future-hampton-by-hilton-hotels-in-china-205286.shtml.

[8] “Hampton by Hilton Begins 2018 Welcoming Seven New Properties; Announces More Than 580 Hotels in the Global Pipeline,” Hampton Global Media Center, 2/23/18. http://news.hampton.com/index.cfm/news/hampton-by-hilton-begins-2018-welcoming-seven-new-properties-announces-more-than-580-hotels-in-the-global-pipeline-.

[9] Hotels in China filtered by brand: Fairfield Inn and Suites (map view), Marriott.com, retrieved 5/31/18. http://www.marriott.com/search/filterSearch.mi.

[10] Hampton by Hilton properties (map view), retrieved 5/31/18. http://newsroom.hilton.com/hampton/properties

[11] “Marriott International and Eastern Crown Partner to Launch “Fairfield by Marriott®” a New Affordable Mid-range Hotel for Travelers Across China,” Marriott News Center (press release), 2/17/16. http://news.marriott.com/2016/02/marriott-international-and-eastern-crown-partner-to-launch-fairfield-by-marriott-a-new-affordable-mid-range-hotel-for-travelers-across-china/.

[12] “The Fairfield by Marriott Brand Premiers in China with Fairfield by Marriott Nanning Nanhu Park,” Marriott News Center (press release), 7/11/17. http://news.marriott.com/2017/07/fairfield-marriott-brand-premiers-china-fairfield-marriott-nanning-nanhu-park/.

[13] “Marriott International’s Select-Service Hotels Tier Are Primed For Unprecedented Growth In Asia-Pacific With Exciting New Openings In 2018,” Marriott News Center (press release), 12/13/17. http://news.marriott.com/2017/12/marriott-internationals-select-service-hotels-tier-primed-unprecedented-growth-asia-pacific-exciting-new-openings-2018/

[14] Hotels in China filtered by brand: Fairfield Inn and Suites, Marriott.com, retrieved 5/31/18. http://www.marriott.com/search/filterSearch.mi.

Marriott Lagged Behind Hilton in Select Service Partnership Deal and Targeted Fewer Openings (Select Service Growth in China, Part 1)

In March 2017, Marriott Executive Vice President and Global Development Officer Tony Capuano told investors that international select service might be one of the most compelling opportunities for the company in terms of future rooms growth.[1] Marriott’s ability to grow select service in China, the world’s most populous country, is a key component of international select service growth.

In 2016, Marriott signed a deal to grow its select service Fairfield brand in China. The use of a local partner with hospitality experience mirrored a similar deal made by Hilton for its Hampton brand. However, Marriott’s deal came two years after Hilton’s, and the number of proposed Hilton properties outnumbered Marriott properties more than 2-to-1.

What does this gap signal about Marriott’s prospects for select service growth in China?

Swift growth of Hampton brand through partnership with largest Chinese economy brand

In October 2014, Hilton announced that they had signed a licensing deal with Plateno Hotels Group to develop the Hampton brand in China.[2] According to Hilton, Plateno had a portfolio of over 3,000 hotels in 300 cities across China, as well as China’s largest hotel loyalty program including 80 million members.[3] A 2016 press release indicated that the company planned to open the 400 Hamptons over a decade.[4]

Hilton’s Hampton growth has been swift: since opening their first property in December 2015,[5] Hilton now lists 29 Hamptons in China on their website.[6] In March 2018, Hilton and Plateno announced that they had signed their 200th hotel deal in China.[7] Hilton announced that it expected to open nearly 50 additional Hampton hotels in China in 2018.[8]

Screenshot of Fairfield by Marriott properties in China, 5/31/18 [9]

Screenshot of Hampton by Hilton properties in China, 5/31/18. [10] The numbers indicate the number of Hampton hotels in each location.

Marriott’s partnership to build Fairfield brand echoed Hilton deal, but with less ambitious target

In February 2016, Marriott announced a development deal with Dossen International Group (formerly Eastern Crown Hotels Group) to bring the “FairfieldSM by Marriott®”brand to China. The agreement targeted having 140 hotels signed in five years, of which 100 are expected to be opened by 2021.[11]

The first Fairfield Inn opened in July 2017.[12] In December, Marriott stated that 8 more Fairfield properties were scheduled to open in China in 2018.[13] As of May 2018, Marriott listed 3 open Fairfield properties in China on its website, along with another opening in June.[14]

Fairfield properties lagged behind Hamptons – what is the plan to bridge the gap?

Based on the brand targets announced by Hilton and Marriott, Hampton will continue to have a greater presence than Fairfield in China.

Investors should be asking the following questions about Marriott’s select service growth in China:

  • Why did Marriott wait two years to create a partnership similar to Hilton’s?
  • Why is Marriott’s projected number of Fairfield properties so much lower than Hilton’s projected number of Hamptons?
  • Will Marriott pursue a similar partnership agreement for another one of its select service brands in China?

 

[1] Transcript of 2017 Security Analyst Meeting, Marriott International, 3/21/17, p. 37. http://files.shareholder.com/downloads/MAR/4828073936x0x935483/44036211-62F7-4112-80D6-E1218E591E06/MAR_SAM_Transcript_FINAL_3-21-17.pdf.

[2] “Hilton Worldwide Signs Exclusive License Agreement for Major Expansion Of Hampton By Hilton Hotels In China,” Hilton Worldwide, 10/30/14 (from Google Cache, page cached 5/28/18). http://webcache.googleusercontent.com/search?q=cache:NRE0BAqa8MgJ:newsroom.hilton.com/index.cfm/news/hilton-worldwide-signs-exclusive-

[3] “Hilton Worldwide Signs Exclusive License Agreement for Major Expansion Of Hampton By Hilton Hotels In China,” Hilton Worldwide, 10/30/14 (from Google Cache, page cached 5/28/18). http://webcache.googleusercontent.com/search?q=cache:NRE0BAqa8MgJ:newsroom.hilton.com/index.cfm/news/hilton-worldwide-signs-exclusive-

[4] “Hampton by Hilton Expands in China” [Infographic], retrieved 4/23/18. http://newsroom.hilton.com/assets/HAMP/images/newsroom/2016/Q1/Mar/HamptonChinaInfographic_HR.jpg. Infographic accessed from “Hampton By Hilton Opens Flagship Hotel In China,” Hilton News Room, 3/25/16. http://newsroom.hilton.com/index.cfm/news/hampton-by-hilton-opens-flagship-hotel-in-china.

[5] “The Hampton By Hilton China Story,” Hampton by Hilton Global Media Center, retrieved 4/23/18. http://news.hampton.com/index.cfm/misc/china.

[6] Profiles of Hampton China properties, retrieved 5/31/18. http://newsroom.hilton.com/hampton/properties.

[7] “Hilton and Plateno Reach Major Milestone for Future Hampton by Hilton Hotels in China,” PR Newswire, 3/21/18. https://en.prnasia.com/releases/apac/hilton-and-plateno-reach-major-milestone-for-future-hampton-by-hilton-hotels-in-china-205286.shtml.

[8] “Hampton by Hilton Begins 2018 Welcoming Seven New Properties; Announces More Than 580 Hotels in the Global Pipeline,” Hampton Global Media Center, 2/23/18. http://news.hampton.com/index.cfm/news/hampton-by-hilton-begins-2018-welcoming-seven-new-properties-announces-more-than-580-hotels-in-the-global-pipeline-.

[9] Hotels in China filtered by brand: Fairfield Inn and Suites (map view), Marriott.com, retrieved 5/31/18. http://www.marriott.com/search/filterSearch.mi.

[10] Hampton by Hilton properties (map view), retrieved 5/31/18. http://newsroom.hilton.com/hampton/properties

[11] “Marriott International and Eastern Crown Partner to Launch “Fairfield by Marriott®” a New Affordable Mid-range Hotel for Travelers Across China,” Marriott News Center (press release), 2/17/16. http://news.marriott.com/2016/02/marriott-international-and-eastern-crown-partner-to-launch-fairfield-by-marriott-a-new-affordable-mid-range-hotel-for-travelers-across-china/.

[12] “The Fairfield by Marriott Brand Premiers in China with Fairfield by Marriott Nanning Nanhu Park,” Marriott News Center (press release), 7/11/17. http://news.marriott.com/2017/07/fairfield-marriott-brand-premiers-china-fairfield-marriott-nanning-nanhu-park/.

[13] “Marriott International’s Select-Service Hotels Tier Are Primed For Unprecedented Growth In Asia-Pacific With Exciting New Openings In 2018,” Marriott News Center (press release), 12/13/17. http://news.marriott.com/2017/12/marriott-internationals-select-service-hotels-tier-primed-unprecedented-growth-asia-pacific-exciting-new-openings-2018/

[14] Hotels in China filtered by brand: Fairfield Inn and Suites, Marriott.com, retrieved 5/31/18. http://www.marriott.com/search/filterSearch.mi.

继陷邮件门影响:万豪酒店暂时被中国主要旅游网站下架   

万豪于1月份在中国引发全国争议后,其数字战略被迫做出改变。 我们登载了该事件如何导致万豪的中文网站被封两月,且网站恢复上线后,却缺失了直接预订功能的报道。

西方媒体未报道的是邮件门事件后,万豪酒店在一月暂时被中国主要的旅游网站,美团网和大众点评网下架。我们在2018年5月24日取得的独家验证表明,在美团网和大众点评网上可搜索到万豪酒店。[1][2]

美团网和大众点评网是中国新兴联盟的旅游网站,占据了94%的在线市场 – 比万豪的合作伙伴飞猪占据更优势的地位,飞猪仅占不到2.5%的在线市场。

美团网和大众点评网下架万豪酒店

2018年1月12日,澎湃新闻网报道,在1月份万豪邮件失误事件后,不仅万豪酒店遭到客户和会议组织者的抵制,万豪旗下品牌酒店也被美团点评经营的预订网站下架。[3] 1月12日,澎湃新闻网的记者在网站上搜索了万豪以及如万怡,万丽等几个万豪品牌酒店,均没有搜到任何结果。[4] 新华社在同一天报道了美团网和美团应用程序上下架万豪酒店的新闻。[5]

在往期文章中,我们介绍了美团网和大众点评网。 自2015年起,与其他网站合并推出以来,美团点评已成为中国网上住宿预订行业的领军者,在2016年,占据了超过16%的市场份额。相比之下,万豪的在线旅游社的合作伙伴飞猪的市场占有率不到2.5%。[6]

万豪被下架时间虽短,却让其失去了争取大份在线旅游市场的机会。

 

2016年中国在线住宿市场份额(按交易量计算)。 资料来源:艾瑞咨询

在这样的大环境下:在线旅游整合或给万豪施压

在往期文章中,我们探讨了由百度和腾讯支持的在线旅游社企业如何组建联盟霸占中国在线住宿预订总量的94%以上。[7] 美点评位于该联盟中:它得到了腾讯和至2012年起的携程合作伙伴Priceline集团的支持。 万豪的在线旅游社合作伙伴飞猪不在该联盟之内。

万豪与其前合作合伙携程的关系也分崩离析,携程是中国主要的在线旅游社。2017年,携程在其网站把所有万豪酒店予以排名降级。冲突似乎持续了很长时间。 2018年4月初,也就是携程首次降级排名万豪酒店近一年后,在携程网上搜索上海酒店时,其首页上仍未显示有万豪酒店。[8]  在携程网的隶属旅游网站-去哪儿网和艺龙旅游网的上海酒店列单中,均未见万豪酒店踪影。[9][10]

占据优势市场地位的联盟让万豪在中国处居劣势。

 

 

[1] Meituan, retrieved May 24th, 2018, http://bj.meituan.com

[2] Dianping, retrieved May 24th, 2018, https://www.dianping.com

[3] Sina (2018, January 12th), 知名企业退订万豪更换年会地点,大众点评、美团等集体屏蔽, retrieved May 8th, 2018, http://news.sina.com.cn/o/2018-01-12/doc-ifyqptqv8449294.shtml

[4] Sina (2018, January 12th), 知名企业退订万豪更换年会地点,大众点评、美团等集体屏蔽, retrieved May 8th, 2018, http://news.sina.com.cn/o/2018-01-12/doc-ifyqptqv8449294.shtml

[5] Xinhua News (2018, January 12th), 国内在线旅游运营商开始下架万豪酒店产品, retrieved May 30th, 2018, http://www.xinhuanet.com/travel/2018-01/12/c_1122250663.htm

[6] iResearch, 2017年中国在线旅游度假行业研究报告, p. 20, retrieved April 25th, 2018, http://report.iresearch.cn/report_pdf.aspx?id=3025

[7] iResearch, 2017年中国在线旅游度假行业研究报告, p. 20, retrieved April 25th, 2018, http://report.iresearch.cn/report_pdf.aspx?id=3025

[8] Ctrip, retrieved April 2nd, 2018, http://www.ctrip.com/

[9] Qunar, retrieved April 2nd, 2018, https://www.qunar.com/

[10] eLong, retrieved April 2nd, 2018, http://www.elong.com/