Chinese hotel chains expand overseas operations

Competition expected

Japan gained Delonix's attention for its relaxed visa policy, currency depreciation and increased flights, which have seen a surge in inbound tourism to the country, said Li Zhong, who runs the Japanese market for Delonix.

Japan took in more than 3 million international travelers in April, up 4 percent over the pre-pandemic level in 2019, according to the Japan National Tourism Organization.

Hotel MONday operations have mainly received individual travelers from the Asia-Pacific region and Europe, most of whom are middle class, Li said.

"With strong demand, both the occupancy rate and the average room price of Hotel MONday properties have increased," he said.

Since Japan eased border control measures in October 2022, the average occupancy rate of Hotel MONday's facilities has exceeded 80 percent, higher than the national average in Japan, Li added.

While Chinese hotel operators are eager to grab a bigger slice of the outbound tourism pie, they need to brace themselves for challenges, experts said.

"They (challenges) do exist, as numerous internationally renowned hotel brands like Marriott, Hilton, and InterContinental have already established strong brand influence and customer loyalty worldwide and are continuously expanding," said Zhou, the brand manager of Elong Hotel.

"Additionally, the policy environment, economic and cultural conditions, and consumption habits of different countries and regions vary greatly. We need to quickly understand and adapt to these differences, including managing overseas employees and integrating upstream and downstream supply chain resources," she added.

Zhou believes Chinese hotel brands should continue strengthening their capabilities to improve their competitiveness in overseas markets.