Shangri-La Hotels Moves On Expansion

NEW YORK–Hong Kong-listed hotel group Shangri-La Asia Ltd. last week unveiled for the U.S. travel press the landmark property it is about to build in London as a preview for its plans to expand its presence in China, Europe and North America over the next four to five years. “Asia is our bread and butter. We need exposures in Europe and North America,” said Giovanni Angelini, the companys chief executive, who also revealed they have a commitment for development in Vancouver, BC. Controlled by Malaysias Kuok Group, Shangri-La is the largest luxury hotel operator in Asia. It owns or manages 46 hotels globally and has more than 20 projects under development. Company executives said they plan to open four to five hotels in Europe, possibly in Paris and Frankfurt, in the next five years. The company said it also plans to add properties in the United States. “For the U.S., we are confident that we will be announcing a property within 2005,” said Chief Marketing Officer Martin Waechter. Potential cities include Chicago, Boston, New York, Los Angeles, or San Francisco. Waechter said Shangri-La will build another 15 hotels across China in the next four years. The company now has 19 hotels in the mainland, which is its single-largest market, making up 21 percent of its business in 2004. For the London property, Shangri-La signed a 30-year lease agreement with London-based Sellar Property Group for a 195-room hotel at the London Bridge Tower, a 70-story development planned for the south bank of the River Thames. This project marks the companys first hotel in Europe and is scheduled to open in late 2009.