New | China's Wanda eyes fast domestic expansion but to slow overseas hotel investment

Wanda Commercial, the mainland’s No 3 developer in sales, on Tuesday announced it will open over 20 domestic shopping malls a year in the next few years while investing in only one or two hotel projects abroad.

The company, controlled by billionaire Wang Jianlin, reported a 14 per cent increase in core profit attributable to shareholders last year to 14.8 billion yuan, compared with market expectations of 14.7 billion yuan.

For 2015, it aims to open 26 malls and 12 hotels, increase rental income by 30 per cent and grow property sales by 5 per cent, senior executives told reporters. It will then open over 30 more shopping malls, also called Wanda Plazas, in 2016.

“We are cautious in picking the destinations to invest abroad” focusing on gateway cities, said Geffrey Liu Chaohui, vice president and chief financial officer of the parent Wanda Group.

“In the future, we’ll invest in only one or two projects a year, to build up our hotel portfolios and branding abroad, and to help facilitate our domestic expansion in the hotel industry.”

Wanda Commercial and the group’s overseas hotel business arm Wanda Hotel Development have invested in hotel projects in New York, Chicago, Madrid, Australia’s Gold Coast and Sydney.