Over the past few years, discussion about the expected influx of Chinese tourism has been front and center within the U.S. hotel industry. Traditional American brand companies continue to look at their offerings and try to figure out ways to accommodate these foreign travelers in anticipation of their arrival, while still catering to their core base of domestic guests.
There has been less talk about the influx of foreign hotel companies, but the potential impact on the U.S. market is every bit as significant. Earlier this month, Japanese hotel giant APA Group, which owns the number-one hotelier in Japan, APA Hotel, opened its first U.S. hotel in Metropark, NJ. The company, which includes some 350 hotels, inked a joint venture with Friendwell Group of Companies.
The APA Hotel Woodbridge is just the beginning, according to APA, which stands for Always Pleasant Amenity. The company has deep pockets and has outlined some aggressive growth plans, looking to open up to as many as 100 hotels within five years. The brand will bring what it refers to as a “new urban style” to the market with an environmentally friendly focus. Friendwell, meanwhile, is New Jersey’s largest owner of hotels and has developed a reputation for blending Asian and American cultural touchpoints. There is little doubt that this skillset will be critical moving forward for U.S.-based companies.
Meanwhile, as APA made its entry into the U.S., rumors continued to swirl about a potential acquisition of Starwood Hotels & Resorts Worldwide. Not surprisingly, in addition to Hyatt Hotels Corporation, three Chinese firms, including Shanghai Jin Jiang International Hotels, are reportedly among the finalists.
Of course, this begs the question: If one of the Chinese firms ultimately wins out, what will be the impact on the Stamford, CT-based mega company with more than 1,200 hotels? Would Starwood look to launch a brand specifically for Chinese travelers? Would brand stalwarts such as W and Westin be tweaked to carry a more international flavor? It’s all speculation, of course.
Frankly, even if they lose out to Hyatt, these firms have demonstrated their desire to get into the U.S. lodging market, and they have the financial wherewithal to do so in a major way. It’s widely acknowledged that we live in a global economy now, where the struggles and successes of one nation can materially affect other countries. Likewise, as the examples in this space demonstrate, the days of living in a global hospitality world are not far off either.