Many Chinese companies have already purchased high-end tourism assets overseas and the budget hotel chain brands in China are following suit. They are starting to venture overseas because of the rapid increase of international travelers coming from the country.
The conglomerate Anbang made headlines because it is one of the investors that purchased the Waldorf Astoria located in New York for a price of $1.95 billion back in 2014. This time, low cost hotels are sharing the limelight.
There are about 2,500 hotels found in China but the most popular when it comes to budget traveling in the country is the 7 Days Inn. Domestic market is starting to slow down for the budget hotel chain this it started to branch out in other locations such as Linz and Salzburg in Austria on 2016. Earlier this month, another 7 Days Premium was launched in Vienna with an establishment that carries 95 rooms. The location is easily accessible to Schonbrunn Palace. There are other branches of 7 Days Premium hotels that are opening soon in other locations including Venice, Leipzig, Munich and Berlin. These branches of the budget hotels are expected to be launched within the year.
GreenTree Inns is another budget hotel brand in China which decided to branch out overseas. It now has branches in the United States, Vietnam as well as Thailand. These new hotels opened since 2 years ago. Last year, the rival of GreenTree Inns which is the Huazhu Group decided to create an alliance with Accor which is a French company. The partnership is a step towards their goal for an international expansion.
According to the European Office’s director of distribution of Plateno which is also the owner of 7 Days, Tomasz Janczak, as soon as Chinese travelers see an option for a hotel brand that is familiar domestically in their home country then there is a big chance that they will patronize that one.
The Shanghai Jin Jiang International Hotels Group is now the fifth leading hotel chain all over the globe since last year after it bought the majority of shares from Plateno and its acquisition of the Louvre Hotels which is a budget chain based in France. Not just in China, budget accommodation in Bangkok is also well known for domestic and international tourists alike.