Hospitality Design - January/February 2014 - 84

perspectives

special feature

destinations
In recent years, the Chinese government has clamped down on frivolous
spending. No one dared be seen in a fancy restaurant anymore since their
photo could be snapped at any moment and posted online for the world to
comment."
However, that spending power filtered down to the locals and has
shifted to 5-Star hotels instead of standalone restaurants. "The average
hotel rate is $144 in Guangzhou, which is similar to Beijing and Shanghai,"
observes Tao. "GDP [gross domestic product] in Guangdong province is
1.2 percent higher and the average spending is 40 percent higher than the
national base. Guangzhou people prefer a high quality hotel instead of a
local brand."

Brand Invasion

Guangzhou > If Beijing is the Washington, DC of China

In the past 18 months, Marriott, Four Seasons, W, Mandarin Oriental, and
Langham Place opened to join Ritz-Carlton, Hilton, and Grand Hyatt in
the Tianhe district. In the pipeline for 2016 and 2017 are properties from
Park Hyatt, Jumeirah, InterContinental, and JW Marriott; all except for
Langham are in the Tianhe district. Ritz-Carlton is already planning for
AB Concept to extend its ballroom and renovate its meeting rooms and
business center.
"Four Seasons Guangzhou was to be a pioneering project, and we
knew that it would be very avant garde," says Ian Carr, CEO of HBA and
principal in charge of the 344-room project designed by London architect
Wilkinson Eyre. "China is a market that loves to feel what they are paying

and Shanghai is its New York City, then Guangdong is California. The
province has a laidback nature that seems at odds with it being the world's
manufacturing center. Like Californians, Cantonese gourmands relish
excellent dishes made from fresh choice ingredients. Yet without the
Olympics or World Expo to spur new hotel development, Guangdong's
capital Guangzhou has lagged behind other first-tier cities when it
comes to 5-Star hotel offerings. But it is catching up fast, and attracting
international designers to get the job done.

Luxury Quotient

According to Tony Ke Tao, director at HVS Guangzhou, 5-Star hotels come
as part and parcel of a developer's commitment if he wants land to build
in China. The planning for a mixed-use complex could take 10 to 20 years,
and sometimes longer if the area needs to be rezoned with demolition and
repatriation of existing residents.
"Five years ago, Guangzhou only had four international level hotels:
White Swan, Garden, Dong Fang, and China Hotel by Marriott," Tao notes.
"Today, there are 281 star-rated hotels. Most of the luxury hotels are
being developed in Tianhe, where Zhujiang New Town's commercial hub
is located."
Tianhe, where the East Rail Station forms a direct line with Canton
Tower, was planned decades ago as a central business district with mixeduse highrises slotted between existing low-rise residences. Located east of
the original city boundaries, it was a logical area for new development.
"In the first tiered cities such as Guangzhou, high-end dining is driven
by commerce," explains Joseph Sy, a Hong Kong-based designer with
extensive experience in Guangzhou. "Fine Chinese restaurants used to
be patronized by developers who entertained government officials there.
Business was conducted over dinner and charged to expense accounts.

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