Peninsula Hotels plans Asian expansion

Peninsula Hotels plans Asian expansion

The Peninsula Hotels group has outlined plans to open properties in China and India over the next decade, with proposals for a London location also mooted.

Speaking at Peninsula’s Beverly Hills hotel, Clement Kwok, chief executive officer of Peninsula owner Hongkong & Shanghai Hotels, outlined a ten year plan for the group incorporating a maximum of 15 properties.

Expanding economies and rising consumer wealth in both India and China promised to increase demand for high-end lodging, argued Mr Kwok,

Peninsula is considering a number of secondary markets in China, where it currently has locations in Shanghai and Beijing, Kwok added.

The chief executive declined to say where the group was considering for the first Peninsula in India.

Long-term plans

While the luxury brand has been hit by lower occupancy rates during the economic downturn, Mr Kwok argued hotel developments would offer returns on investment during the second decade.

“We look at our hotels as long-term investments,” explained Mr Kwok.

“Many investors, many of which are big institutions, appreciate the long-term strategy.”

The company, based in Hong Kong, was also considering plans for a London hotel, Mr Kwok added.

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A Paris opening is scheduled for 2012.

“We generally look at our hotels as 30-to-50-year investments,” Mr Kwok explained.

“We would never close any of them due to a particular economic downturn,” he concluded.

Peninsula joins other ultra-luxury brands pursuing the Indian market.

Ritz-Carlton plans to open its first property in Bangalore in 2010, with Fairmont expected to open in Jaipur in 2011.