HotelsNew signing marks the first major extended stay play for Hilton outside of North America, with 1,000 Home2 Suites set to rise in China

Hilton seals deal to roll out Home2 Suites brand in China

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Hilton and Country Garden announced a new strategic cooperation to develop 1,000 Home2 Suites by Hilton in China.
Hilton and Country Garden announced a new strategic cooperation to develop 1,000 Home2 Suites by Hilton in China.

Hilton has entered into an exclusive management license agreement with Country Garden to introduce and develop the Home2 Suites by Hilton brand in China, marking the first major extended stay play for the American hotel chain outside of North America.

The agreement with Funyard Hotel Investment (Asia), a subsidiary of Country Garden, further expands the strategic cooperation between Hilton and Country Garden.

With the rise of the Chinese middle class, room supply in the upper midscale hotel segment has experienced corresponding growth of more than 10% annually during the last five years.

Following the growing spending power of consumers in China's smaller cities, demand for quality travel and hospitality is expected to increase, creating opportunities for the entry of properties such as Home2 Suites by Hilton in the midscale segment.

"As our second largest market globally, China has consistently seen rapid growth and is forecast to become the world's largest lodging market," said Alan Watts, president, Asia Pacific, Hilton.

"China's massive infrastructure development will further drive demand for products like Home2 Suites by Hilton and we look forward to working together to address the fast-growing demand for midscale hotels against the backdrop of this region's increasing urbanisation," remarked Ji Hongjun, president, Funyard.

"In light of the current climate, we expect domestic tourism to be a key pillar of China's economy and hospitality market," added Qian Jin, area president, Greater China and Mongolia, Hilton.

The Home2 Suites by Hilton brand currently has approximately 400 operating hotels and over 450 hotels in the pipeline across the US and Canada.

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