Despite Tariffs, Hotel Expansions and Renovations Move Full Steam Ahead! How Your Hotel Can Affordably and Sustainably Refresh Guestrooms…

In a recent interview at the NYU Hospitality Conference in New York, Hyatt CEO, Mark Hoplamazian discussed that Vietnam has become a bigger focus for manufacturing with more U.S. companies looking to decouple from China in light of tariffs.

Shawn Fowler, Managing Director with Canoe Hospitality states “We’re seeing this firsthand – imports from China down (13.9% YoY) and Vietnam growing sharply (40.2%) as business shift supply chain strategies.” The recent Bloomberg Report reflects this.

Photo Credit: Bloomberg Report “Americans Snap Up Imports From Vietnam at China’s Expense” by Michelle Jamrisko

Photo Credit: Marriott hotel in Beijing. Mark Schiefelbein – Associated Press

However, large hotel operators, such as Marriott, Hilton and Hyatt, have been aggressively expanding across China in 2019. “China is the biggest single market for us outside the U.S. We’re opening in excess of one hotel a week in China,” Arne Sorenson stated at a previous industry conference.

Hyatt operates 70 hotels and counts 100 more in development across the country. They announced in February of this year, a new strategic joint venture with Homeinns Hotel Group in China. The intent is that these two companies will create a new hospitality brand in China, to be named later, which is intended to be in the upper-midscale segment.

“On a global basis, one of the key megatrends is Chinese outbound travel,” Hyatt CEO Mark Hoplamazian told CNBC. He continued with “I would also point out that we are a significant employer in China. We’ve got a number of important partnerships with major Chinese corporations that own our hotels. When you really think about the impact of a boycott or some sort of action against a brand like ours, it would actually impact a lot of local Chinese businesses including some state-owned enterprises.”

Stephen Ho, President of Greater China Global Operations, shared his insight on the Chinese traveler and how Hyatt hopes to win them over.

How is Hyatt positioning itself in China? Are you focusing more on luxury or non-luxury travel?

“We are focused on caring and exceeding our guests’ needs. So, each of our brands are positioned at the high end of every segment in which we operate, be it luxury, full service, select service or all-inclusive. Currently, we have seven brands presented in the Greater China region, including Park Hyatt, Andaz, Grand Hyatt, Hyatt Regency, The Unbound Collection by Hyatt, Hyatt Place and Hyatt House.”

Intercontinental Hotels Group (IHG), the owner of Holiday Inn and Kimpton Hotels, is also laser-focused on expanding across China.

IHG CEO Keith Barr told CNBC that he was in China over two weeks ago talking to top developers. “They are signing more hotels with us. We’ve just signed our 400th hotel there and have 400 more in development — so, real momentum there. But there is that uncertainty [due to tariffs].”

Interestingly, a recent study from Nomura’s Asia team found that Vietnam however is by far the largest beneficiary of the U.S.-China trade diversion, gaining 7.9% of GDP between the first quarter of 2018 and the first quarter of 2019.

Solid surfaces being purchased by suppliers such as the always desirable granite and marble are among many of the materials that have experienced a cost increase for hotel renovation projects. It is the go-to preferred surface that adds that level of luxury to a hotel guest bathroom and a touch of elegance to a nightstand or beverage center.

Photo Credit: The Refinishing Touch® – As you can see from our insider photos from this year’s NEOCON Show in Chicago. The show provides an in-depth view into what is trending for the hospitality industry and many other industries.

The Refinishing Touch® can provide your hotel with additional solid surface options that can be cost effective and look beautiful. Surfaces such as laminate are great looking and cost-effective in addition to stone or glass.

Photo Credit: The Refinishing Touch®

And let’s not forget simply refinishing your FF&E will provide a refreshed look, as well. The incredible savings you will experience by simply refinishing your FF&E can be wisely reinvested into updating other important items for your guestrooms such as HVAC, lighting, technology, security, and much more!

Photo Credit: The Refinishing Touch®

With our sustainable, on-site refinishing process, we can provide your hotel with incredible savings and reduce your CO2 impact at the same time. We can help your budget and help the planet at the same time.

Photo Credit: The Refinishing Touch®

Whether you are experiencing a PIP, CAPEX or rebranding, call our team at The Refinishing Touch® today, 1.800.523.9448 or email [email protected] and request your FF&E quote. We can provide options and solutions that you may not have considered and provide 50% up to 80% savings too!

For over 41 years, we have been providing solid surface replacement, on-site refinishing, re-engineering, reupholstering and decorative hardware replacement. We are the trusted and Preferred Supplier for Hilton, Host Hotels and Resorts and many more!

For more information about our community of services, we invite you to visit www.therefinishingtouch.com

RESOURCES:

Despite tariffs, hotel operators double down on China expansion and eye Vietnam. by Seema Mody, CNBC

Americans Snap Up Imports from Vietnam at China’s Expense by Michelle Jamrisko

Hyatt Forms New Joint Venture In China To Expand Footprint. by Ben Lucky, One Mile at A Time.