Major Hotel Chains Target China, India For Multibrand Development
Major hotel companies are focusing heavily on development in the Asia/Pacific region, particularly in India and China, although hotel programs in the region, many parts of which have limited availability and fast-rising rates, remain a challenge for corporate travel buyers.

Average daily rates increased from 2006 to 2007 by 13 percent to $128.60 during the month of July, according to the latest data available from Smith Travel Research and The Bench. The 30 percent increases in average daily rates in both Southeastern Asia and Central and South Asia are the highest regional increases in the world, as recorded by the firms.

Hotel revenues also are showing tremendous growth in the region. Revenue per available room in July was up 12.8 percent, according to Smith Travel Research and The Bench. RevPAR in Central and South Asia was up 32.7 percent, and RevPAR in Southeastern Asia was up 40.6 percent, higher than any other measured region, globally.

With many individual hotel companies posting similar results in the region, it comes as little surprise that the companies plan ambitious development. With locally owned hotels in some countries not listed in global distribution systems and often of unknown quality to foreign visitors, the presence of more brand names in those countries is a welcome sight to some U.S. travel buyers.

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