Regal Hotel International is actively expanding its footprint on the mainland despite the gloomy global economy.
The Hong Kong-listed hotel operator yesterday signed a 10-year hotel management contract with Sichuan Master Investment Group for the Regal Master Hotel in Chengdu, Sichuan province. The deal marks the fourth hotel on the mainland to be managed by Regal.
The five-star hotel with 350 rooms in Chengdu will be opened in September.
The company did not disclose the asking room rate for the hotel, but said average room rates for a five-star hotel in the city stood at 800 yuan (HK$907) to 1,000 yuan per night and it hoped to fetch a higher price if the economy improves when the hotel opens.
'We will continue to strengthen its portfolio by expanding to more than 20 managed or owned hotels in first and second-tier cities in China in the next five years,' Regal executive director and chief operating officer Belinda Yeung Bik-yiu said, adding that a deal on the mainland would be concluded shortly.
Regal operates five hotels in Hong Kong and two in Shanghai. It will also operate the Regal Jinfeng Hotel in Pudong, Shanghai, which is scheduled to open in May.