IN an ever-more crowded MICE market in Shanghai, it is vital for hotels to remain innovative and offer top-notch service. Three leading figures explain how they do this.

Q: How large is your current portfolio in Shanghai and how do you expect it to grow over the next few years?

Wong: We already have four hotels under the Regal brand in Shanghai. For Regal Hotels International, Shanghai has always been a very important market. The Regal International East Asia Hotel (five-star) and Regal Shanghai East Asia Hotel (four-star) in Xujiahui commercial area opened in 1997.

Over the past five years, we have opened the Regal Jinfeng Hotel and Regal Plaza Hotel and Residence in Jinqiao and Waigaoqiao area respectively. We plan to increase our portfolio to more than 40 managed or owned hotels in the next five years in China.

Young: Langham Hospitality Group currently operates four hotels in Shanghai under The Langham, Eaton Luxe and 88 Xintiandi brands. These target different needs of international and domestic travelers - from upscale to luxurious experience.

We are currently working on some interesting projects around the Hongqiao, Yangpu and Hongkou areas, and seeking potential projects in other Shanghai districts, especially Pudong. With Shanghai's fast development, we are very positive about our future growth in the city.

Huang: With the opening of Twelve at Hengshan, A Luxury Collection Hotel, Shanghai and Sheraton Shanghai Waigaoqiao Hotel, Starwood now operates 11 hotels in Shanghai, offering over 4,500 rooms and 20,750 square meters of meeting space. This makes Shanghai the biggest market for Starwood on Chinese mainland.

The other nine hotels are: Sheraton Shanghai Pudong, Sheraton Shanghai Hongkou, Sheraton Shanghai Hongqiao, The Westin Bund Center Shanghai, Le Royal Meridien Shanghai, Le Meridien Sheshan Shanghai, Four Points by Sheraton Shanghai Daning, Four Points by Sheraton Shanghai Pudong and The Hongta Hotel, A Luxury Collection Hotel, Shanghai.

In the pipeline are three more hotels with a total of 1,022 rooms: W Shanghai - The Bund (2014), Sheraton Shanghai Jiading Hotel (2014) and Le Meridien Shanghai Jiading (2017).

Q: Are you launching any campaigns to strengthen your brand image as competition continues to intensify in the city?

Wong: Diversifying our brands on Chinese mainland: Besides the current Regal brand (four to five stars), we have Regal Royale (our luxury brand), iClub by Regal (contemporary select-service hotel brand) and Regal Residence (service apartment brand) on Chinese mainland.

This first Regal Royale Hotel of the Group is in Kunshan in Jiangsu Province and scheduled to open in 2015.

The first Regal iClub Hotel opened in Hong Kong in 2010 - the first carbon neutral hotel in Hong Kong, providing a smoke-free environment with 99 chic guestrooms and suites.

A focus on green programs: In 2012, our group launched its green initiative themed "We Love Our Planet" to bring Regal Hotels to a new level of sustainability development.

Young: Three years ago, world-class Chinese pianist Lang Lang became brand ambassador of Langham Hospitality Group for The Langham and Langham Place brands. Last year, we appointed famous celebrity actress Charmaine Sheh to be our Eaton brand ambassador. We partner with Lang Lang and Sheh by recognizing their dedication, professionalism and talents as well as their positive and inspiring images which we believe will resonate with our brand DNA.

There is no doubt that the competition is getting tougher in the hospitality sector, but it is also an opportunity to be more specific to our targeted market, and improve further our products and services. To stand out, we need to stay nimble and innovative, and offer personalized touches during guests' stay with us.

Huang: Starwood's hotel loyalty program - Starwood Preferred Guest (SPG) launched its mobile app in 2012: The mobile platform continues to be a vital part of our business's future, and nowhere is this more evident than China, already the world's largest mobile market, where we have also seen significant SPG enrollment increases. China is also the richest source of new, loyal travelers for Starwood Preferred Guest Program.

Q: What do you think of the supply-demand situation in the city's upscale market?

Wong: Supply and demand of Shanghai's upscale and luxury hotel market is ever-changing, yet guests are always looking for value for money.

There are two major challenges.

1. China's overall economy:

As long as China's economy is sustainable, more and more overseas visitors will visit China more frequently. This will certainly have a positive impact for the hotel industry in China.

2. Retaining talented employees:

Since more and more hotels are opening, a shortage of hotel talent has become the biggest challenge for operators. As we are opening hotels in second-tier cities or even third-tier cities, keeping talent has become essential.

Young: Currently we are facing some negative factors - such as the H7N9 bird flu - that haul down both MICE and tour group business.

And the new government policy (austerity) has affected the business flow of meetings and entertainment.

But demand in upscale and luxury hotel market in Shanghai remains positive. As the financial center of China, Shanghai will continue to attract domestic and international investment. Upcoming mega projects such as Disneyland and DreamWorks will further enhance the city's attractions.

Huang: Starwood is looking ahead and signed more deals and opened more hotels in 2012 than it did in 2011 - which were already new records with 25 new hotels and 36 signed deals. In certain markets, it will take some time to absorb new supplies added to the market in last few years, but we remain optimistic.

Q: Do you consider MICE business an important engine for your future revenue/profit growth? How do you expect the overall MICE market in Shanghai to expand?

Wong: MICE business is definitely important for our group's future hotel revenue. This is one segment that I believe has the greatest potential to develop and expand. I expect the MICE market will grow rapidly over the next couple of years as Shanghai has become more and more popular as the destination point for MICE events. Shanghai has a wide selection of attractions and sightseeing spots, and has everything to offer MICE groups.

We will certainly be focusing on capturing this business through state-of-the-art technology in our facilities and value added services, such as organizing trips to local attractions.

Young: MICE is one of the most important market segments contributing to revenue growth today. Obviously, MICE business will continue to grow, and Shanghai will become more and more an important international MICE destination.

Aside from being the source of outbound travelers, China will be the world's most visited country by 2020, attracting more than 130 million visitors a year. MICE business has great potential for us in Shanghai.

Huang: Our 11 properties in Shanghai feature a total of 20,750 square meters of meeting space for MICE gatherings and events - the largest single venue measuring 1,770 square meters - so this business is clearly a key engine of our growth in the city.

Our focus on the Shanghai MICE market also extends to Sheraton Hangzhou Wetland Park Resort, located amid the lush hills and sparkling waters of the Xixi national wetland preservation area, just one and a half hours' drive from Shanghai. With more than 1,900 square meters of function space, this resort is the perfect venue for a product launch, large meeting or social event.

Our participation at Incentive Travel & Conventions, Meetings (IT&CM) China in Shanghai in April, after a four-year hiatus from the MICE trade show, underlines our commitment to remain at the forefront of this market, and grow our MICE business even stronger.