Low-star Individual Hotels Form Alliance in China

31st July 2008 (Last Updated July 31st, 2008 09:45)

A new hotel alliance called Starway Hotels has been unveiled in China as a trans-regional alliance of domestic low-star grade hotels. The alliance hopes to breathe life into the individually operated low end hotel industry in China, which has struggled to keep up with larger hotel opera

A new hotel alliance called Starway Hotels has been unveiled in China as a trans-regional alliance of domestic low-star grade hotels.

The alliance hopes to breathe life into the individually operated low end hotel industry in China, which has struggled to keep up with larger hotel operators in recent years.

Starway Hotel Management (Shanghai) executive general manager Liu Jiajun said that, “because chain hotels have been growing rapidly in China in recent years, the occupancy rate in many individual hotels at medium- and low-star levels went down”.

The hotel group believes that at present there are between 10,000 and 20,000 low star grade hotels in China, of which around 10% belong to branded hotel chains.

Starway Hotels plans to select individual hotels with good basic facilities located in prime locations and assist them in improving their brand awareness and quality standards.

The alliance believes they can help individual hotels to achieve higher ratings and wider recognition through development and better operations practices.

Starway Hotels currently assists 20 hotels located in Shanghai, Beijing, Hangzou, Suzhou, Qingdao, Dalian, Chongqing and Chengdu.

The alliance will focus its efforts first in Beijing, Shanghai and the Yangtze River Delta. Starway hotels will then focus on thriving first and second tier cities around the country.

Starway Hotels has also formed a strategic partnership with Ctrip.com, a leading consolidator of hotel accommodation and airline tickets in China.

By Daniel Garrun