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SCMP Reporter

SHANGRI-LA International first moved into China in 1984 when it took over management of what used to be called the Hangzhou Hotel, now the 553-room Shangri-La Hotel, Hangzhou.

  Expansion rapidly continued with the opening of the 298-room Traders Hotel in 1989, and the 743-room China World Hotel in 1990 - both properties being integral components of the impressive China World Trade Centre.

  The group now manages six properties in China: the three others are the 783-room Shangri-La Hotel, Beijing; the 628-room Portman Shangri-La, Shanghai; and the 553-room Shanghri-La Hotel, Shenzhen.

  In 1990, an opportunity developed on China's eastern seaboard with an invitation to manage the new Portman property, part of another large multi-use development, Shanghai Centre.

   Shangri-La assumed management on April 1 and, just six weeks later, on May 25, celebrated the hotel's soft opening.

  Today, the China World Trade Centre and Shanghai Centre give the group the most extensive convention, meeting and exhibition facilities in China.

  In September 1991, the group opened its sixth property in China, the Shangri-La, Shenzhen, and a seventh China property shall be added to the portfolio with the management takeover of the Golden Flower Hotel, Xian, (renamed Shangri-La Golden Flower) effective on Tuesday.

  The group's entrance into China back in the 1980s had much to do with the astute business foresight of its parent company, the Kuok Group. While many other hotel groups held back, Shangri-La consolidated its position and established itself as a market leader.

  ''Shangri-La is a very forward-thinking company, a pioneer if you like, often moving into countries long before our competitors,'' said Mr Al Wymann, group director of development.

   China, and most recently the Philippines, is a perfect example of this.

  The group is very bullish concerning future development and more hotels are planned.

   Ground breaking for a new hotel in Shenyang took place on May 13 and the 557-room property is slated for opening in 1996.

  Shangri-La's market mix for its China properties is predominately business travellers.

  However, leisure travellers and groups constitute a higher percentage of business at the Shangri-La Hotel, Beijing, and Shangri-La Hotel, Hangzhou.

  The other hotels, namely China World Hotel, Beijing Traders Hotel, Beijing, Portman Shangri-La, Shanghai, and Shangri-La Hotel, Shenzhen, cater predominately to business travellers.

  Year-to-date occupancy and average rates at all the group's China properties have performed well and this is expected to continue.

  During the traditionally slower summer period, Shangri-La has introduced a special summer package, effective from Tuesday until August 31, with value added benefits.

  Rates range from US$88 for a superior room at the Shanghri-La Hotel, Hangzhou, up to $189 for a deluxe Horizon Floor room at the China World Hotel, Beijing.

   The rates reflect single or double occupancy, and include a late check-out facility until 6 pm and a daily newspaper.

  As well as business and leisure travellers, China is growing in popularity as an incentive destination.

  Ms Joanne Watkins, group public relations manager, said: ''Companies from Europe, the US and Asia are now increasingly looking at China as an incentive venue.

   ''It offers great value and huge variety, and meeting planners are often amazed at the very high standard of events Shangri-La can host.

  ''This is definitely a growing market for us.''   Shangri-La International now manages 23 properties throughout Asia.

  Its six (soon to be seven) properties in China constitute a significant part of the total portfolio.



Early move by group pays off