Actively Building Bridges and Strategically
Positioning in the Middle East
Market
SINGAPORE and SHANGHAI, Nov. 14,
2023 /PRNewswire/ -- On November 8th, the China International Import Expo
International Investment and Financial Cooperation Forum was held
at the National Exhibition and Convention Center in Shanghai. The forum, centered around the theme
of "Digital Empowerment for Innovative Growth, Building a New
Landscape for International Investment and Financing Cooperation,"
was attended by leaders from various Chinese government departments
and relevant institutions, diplomatic representatives, foreign
guests, domestic financial experts and scholars, overseas financial
institution representatives, as well as representatives from the
financial and economic sectors. During the event, H World
Group Limited ("H World" or "the Group", NASDAQ:
HTHT, HKEX: 1179) subsidiary, the
Joya Hotel Shanghai Gubei, proudly served as the official
reception hotel for the Arab exhibition delegation. A dedicated
reception team was promptly established to smoothly coordinate and
facilitate the proceedings, providing tailored services in
accordance with Arab reception etiquette and religious practices.
Exclusive culinary offerings and customized dishes were prepared to
cater to the diverse lifestyle needs of the guests, reflecting the
commitment of Joya Hotel to uphold the elegance of Chinese
traditions and high-quality brand philosophy of providing
guests with refined living. Additionally, Murphy Zhu, President of
Asia Pacific and the sole
representative from the Chinese hotel industry, was invited to
participate in the "International Investment Promotion and
Investment China Closed-Door Dinner Party." During the event, he
delivered a keynote speech focusing on future cooperation with the
Middle East region.
As one of the fastest-growing hotel groups globally, H
World ranks sixth in terms of the number of hotel rooms, with
a portfolio that encompasses 31 hotel and apartment brands across
18 countries as of September 30,
2023. The Group currently operates a total of 9,157 hotels
with 885,756 rooms, and has successfully cultivated a
membership base of over 200 million. With a strong focus on
the Chinese market, H World has established a presence in over
1,000 cities nationwide, operating more than 9,000 hotels under 31
distinct brands. The Group is continuously exploring
opportunities in lower-tier markets, expanding its hotel
network. Simultaneously, H World actively pursues
international expansion, presently operating 8 hotel brands across
3 continents, with 129 hotels in operation and 35 new hotels in
preparation. This extensive hotel network and loyal membership base
provide H World with the capability to capitalize on new
market opportunities and fortify its brand chain.
Focusing on the Vast Market
Potential in Saudi
Arabia, H World Strategically Targets
the Middle East
for Expansion
Saudi Arabia possesses a robust
hotel pipeline and holds significant market potential. The
government's "Vision 2030" initiative aims to foster a more
dynamic, open, and modern business environment by introducing new
industries such as entertainment and tourism, promoting investment
regulations and societal reforms to drive economic diversification.
Key catalysts for this expansion include the Public Investment Fund
(PIF) and the Tourism Development Fund (TDF), with investment
projects primarily concentrated in the Giga projects, the
investment in major cities like Riyadh and Jeddah, as well as the Pilgrimage Cities:
Makkah, Madinah. These initiatives are gradually
extending to select secondary cities to enhance the appeal of
tourism products, attract investment opportunities, and further
develop and refine Saudi Arabia's
tourism ecosystem. The significant potential for market
development, backed by local government financial support, aligns
well with H World's long-term development strategy in the
Middle East. Capitalizing on this
opportunity, H World is strategically directing its focus
toward the Middle East market,
continually enhancing its market share in overseas territories.
China and
the Arab States Engage in Deep
Cooperation, H World Enters the Middle
East Market with Strong Capabilities
As the "Belt and Road" initiative and multilateral trade
exchanges enter a phase of high-quality development, China continues to deepen its cooperation and
exchanges with Arab states. Statistics indicate that total seat
capacity from China to KSA in 2023
was 4.5 million, with a forecast to reach 6 million in 2025. This
continuous increase in capacity is expected to drive further trade
cooperation between China and the
Arab states, fostering rapid development in the tourism industry
for both parties. In July of this year, the Chief Executive of
the Hong Kong Special Administrative Region met with the Saudi
Arabian Minister of Communications and Information Technology,
witnessing the signing of the memorandum of understanding by
11 local companies to enter the Saudi market. As one of these
enterprises, H World has longstanding roots in the
Middle East, and the signing of
the memorandum further enhances its resource network in the region,
facilitating better connectivity to the Saudi market. This
establishes an efficient and connected platform as H
World continues to expand its global business footprint.
Currently, H World operates 3 hotel brands in the Middle East, with 9 hotels already open in the
Gulf Cooperation Council (GCC) countries. China and Germany, as the main operating regions of the
Group, are also the important source markets for Saudi Arabia and the Middle East, laying a solid foundation for H
World to establish a foothold in the Middle East. In order to offer specialized,
high-quality hotel services tailored to the local characteristics,
H World has opened offices in Dubai and plans to establish a new
office in Riyadh in 2024. The
experienced team and rich operational expertise make local
operations more manageable, fostering the strategic positioning of
H World in the Middle
East.
The ongoing close collaboration between China and the Middle
East paves the way for H World to further expand its
overseas presence. Leveraging the substantial market potential in
the Middle East's hotel
accommodation industry, H World actively seizes market
opportunities, relying on a seasoned management team, extensive
operational experience, and a solid customer base to drive
continued expansion in the Middle
East. This contributes to H World's share increasing in
the global market, leading the way for China's tourism and accommodation industry to
explore and establish a positive development model in international
markets.
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SOURCE H World Group Limited