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Luxury Hotel - Magazine

France's Accor adding 94 hotels

Asian hotels press ahead with expansions despite pandemic.

But instead of a cavalcade of guests swarming the five-star property on the scheduled July 1 opening day --- three weeks ahead of the intended start of the 2020 Olympics -- its marble-clad lobby will likely be eerily empty.

"We understand that there will be a big impact from the drop in the number of inbound tourists coming to Japan due to the coronavirus and the postponement of the Olympics," hotel spokesperson Mitsui Fudosan told the Nikkei Asian Review. "But we will not change the opening day."

Despite the international travel industry facing one of the biggest crises in its history, hotel operators across Asia including France's Accor, Thailand's Centara, Singapore's Far East Hospitality and U.S.-based Marriott International, are pressing ahead with expansions originally timed to coincide with the staging of summer Olympics in Tokyo and fueled by the ever-rising tide of Chinese tourists.

Prior to the coronavirus outbreak, Japan's government had set a target of attracting 40 million foreign visitors in 2020, bringing in an expected 8 trillion yen ($74 billion) in spending.

And with Chinese tourists already spending over $100 billion a year on international tourism, the United Nations World Tourism Organization was predicting that by 2030, China would account for over a third of all international tourism.

Numbers like that help explain why some of the world's biggest operators such as Accor are betting so big on Asia, with the French hotel group adding a total of 20,000 rooms to its portfolio this year, with two new hotel openings in Japan, more than 30 new hotels in Southeast Asia, and a staggering 94 new hotels in China.

"With Chinese travelers spending more than anyone, we have therefore made the Chinese market a key priority and created services with Chinese guests in mind, including ensuring we have Chinese-language staff and collaterals in our hotels, Chinese menus and Chinese media," said Michael Issenberg, chief executive of AccorHotels Asia Pacific.

While Issenberg declined to comment on whether the coronavirus pandemic would force the delay of some hotel openings, he said the company's first priority "is the safety and wellbeing of our guests and staff. We are closely monitoring the Novel Coronavirus outbreak and have instructed our hotels to implement measures to minimize risk of transmission."

Markland Blaiklock, Deputy Chief Executive of Centara Hotels and Resorts told Nikkei that his company will be spending close to $340 million on refurbishing existing hotels and other projects under development this year.

"We do not anticipate this situation impacting Centara's growth plans in any way, nor any of our new property openings in 2020, of which there are 8 scheduled," said Blaiklock. "This is an exciting year for Centara with hotels set to debut in Myanmar, Laos and Dubai as our international network continues to expand, in line with our growth strategy. This is in addition to further openings domestically in Thailand, as well as in Qatar."

Singapore hotelier Far East Hospitality, which will add more than 700 rooms in key markets including Vietnam, Japan and Australia, is also pressing ahead with its expansion plans.



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