Peace Hotel operator eyes doubling of portfolio on mainland by 2010

Shanghai Jinjiang International Hotels (Group) is eyeing an aggressive expansion as the mainland hotel operator taps rising demand for lodging arising from the mainland's growing economy and booming tourism industry.

The company, which owns the Peace Hotel in Shanghai, aims to almost double its portfolio to 730 hotels by 2010, according to Yang Weimin, its managing director and chief executive.

At the end of last year, the firm had 100 star-rated hotels and 280 Jinjiang Inn budget hotels in operation or being developed. It aims to increase the star-rated hotels to 130 and inns to 600 by 2010.

'We aim to add 2,000 extra rooms in star-rated hotels and open 70 to 80 Jinjiang Inns every year,' Mr Yang said.

Its 50 per cent-owned Wuhan Jinjiang International Hotel, which had its grand opening on Friday, is the latest to join its star-rated hotel portfolio.

Mr Yang believes the rapid expansion of budget hotels, which will be achieved mainly through franchising, will help lift the sector's contribution from 14 per cent of the group's total revenue in 2006 to 30 per cent in 2010.

Franchised inns will account for 70 per cent of its inns portfolio by 2010, up from the current 60 per cent. For the self-owned and operated inns, Mr Yang expects the company to invest an average of 50 million yuan (HK$55.5 million) each.