1. How large is your current portfolio in Hangzhou and how do you expect it to grow over the next few years?

Draminsky: In China’s most picturesque setting, Four Seasons Hotel Hangzhou at West Lake reveals an intimate lakeside village, melding centuries of tradition with chic contemporary style. Close to business and shopping, discover a tranquil enclave, woven with ponds, streams and lagoons. Small, quiet and exclusive, the hotel features 78 guest rooms — including five suites — plus three residential-style villas for families and larger parties. Experience Chinese hospitality in our exclusive Chinese restaurant Jin Sha. Presenting fine Shanghainese, Cantonese and classical local cuisine, Jin Sha focuses on private dining, with 11 stand-alone private dining rooms surrounding a garden lagoon. For all-day dining, WL Bistro serves both Asian and Western cuisine with open-air seating available most of the year.

We are planning to build a second Four Seasons Hotel in downtown Hangzhou in the upcoming few years.

Zaunmayr: Oakwood Asia Pacific currently has one property, Oakwood Residence Hangzhou, with 321 apartments located in the Hangzhou CBD on Jiaogong Road next to Huanglong Sports Center. Over the next few years, with the growth of international investment in the developing zones of Hangzhou, Oakwood’s property portfolio is expected to increase.

Dexter: As a company we have the luxury Wyndham Grand Plaza Royale, followed by Wyndham, Howard Johnson and Ramada properties. At a lower price point we have Days Inn and then Super 8.

In Hangzhou, Wyndham operates the Wyndham Grand Plaza Royale at West Lake and two Ramada properties. A Wyndham in Binjiang is due to open at the end of the year. We are searching for a Howard Johnson opportunity in the city.

Wang: The Azure Qiantang, a Luxury Collection Hotel, Hangzhou, is a sophisticated tower on the banks of the Qiantang River that will open this summer. Situated along Hangzhou’s Qiantang River, home to the world’s largest tidal bore, authentic experiences await the global explorer.

The 205 guest rooms and suites are graciously appointed, elegantly furnished, and feature spectacular views over the Qiantang River through floor-to-ceiling windows. Discerning gourmands will find much to savor in the two fine restaurants and lobby lounge. Relax in the lobby lounge or on its terrace for a cocktail with friends or business associates. With spectacular 180-degree river views, the signature restaurant features international buffet favorites, as well as an à la carte menu and wood fired pizzas that are best enjoyed on the breezy outdoor terrace.

Xu: We now have three Marriott hotels in Hangzhou, JW Marriott Hotel Hangzhou and Courtyard by Marriott Hangzhou Wulin in city downtown and the Courtyard by Marriott Hangzhou Qianjiang in Qianjiang CBD.

We will open three more hotels in Hangzhou in the next three years. Zhejiang Province will become one of the major areas for Marriott’s expansion in China.

2. What campaigns are you going to launch this year to further strengthen your brand image as competition among internationally branded hotels continues to intensify?

Draminsky: Four Seasons Hangzhou launched the exclusive West Lake Boat Arrival Experience in March.

Upon your arrival, the hotel limo will pick you up from the airport or train station and take you straight to West Lake Pier. There, get on board a traditional Chinese style wooden boat and the rest is total relaxation. Slowly cruising through the willow-fringed waters, you will be treated with a panoramic view of the scenic landscape while the modern city hustle and bustle melts away in a fresh pot of Longjing tea. Don’t miss the chance to take a fun lesson in local legends from your boatman, who will tell you all about the folklore of West Lake. Before you know it, the check-in process is underway and the boat has reached the hotel pier, where a welcome tea ceremony marks a perfect start to your stay with us. If once isn’t enough, no worries — you are most welcome to come back for more. Simply pick a fine day and bring a bottle of Champagne to the hotel pier, and we will arrange a boat that takes you into the peaceful embrace of West Lake.

Zaunmayr: Across the globe, Oakwood is recognized as the most trusted name in global living solutions. Our mission is to help people and businesses throughout the world find temporary living solutions. With many new internationally recognized brands flooding the market recently we must first of all remain true to our mission by providing the gold standards of service that earn the trust of our customers. As the only internationally managed five-star serviced apartment in Hangzhou, we must continue to focus on campaigns to highlight our strengths, which is generally in the direction of providing a home away from home. Most of our apartments are one, two, or three bedrooms, which are ideal for longer stay business people or families either relocating or even on a short holiday.

Dexter: We have a variety of ongoing programs and continue to remain consistent in terms of high-level service as noted by the online review channels, which ensures our brand image remains high.

An increased focus on the Wyndham rewards loyalty program across the mainland will be the main thrust for this summer’s activities.

Wang: Our marketing activities focus around the fact that we are the first international luxury brand hotel along the Qiantang River. We are planning a series of activities emphasizing the sense of luxury to further strengthen our brand image. We will have PR road shows this May and June in Shanghai, Beijing, Guangzhou and Ningbo, which are key feeder markets for Hangzhou.

In October we will join the “Belgian Culture Month” in Hangzhou’s top luxury shopping mall MixC with the Belgian Consulate General in Shanghai. During this event, we will share the Luxury Collection Hangzhou’s indigenous story and share this unique product with the market.

It is a great opportunity to expose this great hotel to the Zhejiang market, especially considering we are the only luxury hotel that has been invited.

We will also be launching very attractive pre-opening offers: Guests can get additional complimentary transportation, breakfasts or SPA treatments within the framework of these special opening offers. For groups, meeting planners can enjoy triple points for Starwood Preferred Planner loyalty program and free upgrades for coffee breaks and banquet menus.     

Xu: We will intensify the cluster concept this year by starting the cluster map program, joint brand events, customer appreciation parties and e-commerce promotion. The cluster advantage is obviously what we distinguish from other groups or brands.

3. What do you think of the supply-demand situation in the city’s upscale and luxury hotel market? What challenges are you encountering at the moment to maintain long-term growth?

Draminsky: As a famous tourism and fast-developing secondary city in China, Hangzhou still has big room for luxury hotels to grow in the long term. Some five-star hotels’ income has been reduced due to the political and economic environment, but we foresee continuous demand from overseas, with experienced travelers now looking for additional experiences beyond Beijing and Shanghai.

Zaunmayr: Currently in Hangzhou the supply far outstrips the demand in the luxury and upscale accommodation market. This is only short term though as the more brand names that come into the market, the more recognition Hangzhou will receive internationally. Short term though, we must ensure we carefully review every market segment to fully maximize our business potential.

Dexter: There continues to be a steady stream of openings at the top end of the market, naturally we look at improving service as a way to differentiate ourselves.

Wang: In Hangzhou, there are only a very few luxury hotels present in the market. Being the capital city of Zhejiang Province, we do believe there is strong potential for top luxury hotels to thrive. The Azure Qiantang, a Luxury Collection Hotel, Hangzhou, will be the pioneer in this segment along the Qiantang River.

Although the brand is renowned in the world, with 85 hotels now, it is still a relative newcomer to the Chinese market. Naturally, this also represents a great opportunity for us to build up a strong brand positioning in the market. I would like to say the challenge is equal to the opportunity.

Xu: I believe the supply-demand situation is increasing steadily in the upscale and luxury hotel market, especially the next two years. The challenges come more from the new strong competitive hotels opening to share the market and the existing brands that have already established a solid customer foundation and awareness.

4. Do you consider MICE business an important engine for your future revenue/profit growth? How do you expect the overall MICE market in Hangzhou to expand over the next couple of years and how do you anticipate it impacting your own business?

Draminsky: Yes. Hangzhou has a variety of well-equipped MICE facility offerings that cater to various requirements in terms of venue and budget, including large conference hotel complexes for congresses with thousands of participants and boutique meeting hotels for high-end exclusive mid-small meetings or parties. According to the Hangzhou government’s plan, Hangzhou will accomplish the meeting and exhibitor centers layout featured by “Two Main, Four Minor and the other Nine Complementary Venues” by 2020, and then meet the high demands as a first-class MICE destination city at home and abroad.

As the major MICE destination in China, Hangzhou tourism players have placed great emphasis on the meetings business in recent years. MICE has become one of the important segments within the tourism sector in Hangzhou. And the Hangzhou government and its relevant functional sectors have cooperated well to guarantee the smooth organization for a large MICE event in terms of transportation, public relations and publicity, food supply and service quality monitoring and other arrangements. Furthermore, the government has issued a series of incentives and initiatives to support the MICE industry.

When it comes to five-star service and facilities there are many stand-out properties that offer superior service and atmosphere.

Four Seasons and other international high-end brands have established a strong presence in Hangzhou, and are able to guarantee a world-class accommodation experience with a distinctive local appeal. These venues have professional banquet teams to provide customized meeting package products.

Zaunmayr: MICE business is important to any property that has the facility to accommodate, whether large or small. At Oakwood Residence Hangzhou we have recently launched a series of meeting and wedding packages for smaller events. Hangzhou already is and will be a major market for both domestic and international MICE business. Although we can only accommodate smaller events (up to 120 people), we must be on the list of major meeting planners as properly utilizing this market segment can greatly enhance business revenue.

Dexter: MICE is one of the essential revenue components of a hotel. The opening of the new railway station along with the new domestic air terminals have given Hangzhou world class transport networks. This allows both the city and hotels to market and expand the meetings opportunities. Hangzhou is a tourist destination due to West Lake, Longjing tea plantations, the Xixi wetlands and a 45-minute train journey escape from Shanghai. With international flights from Europe and the rest of Asia, it makes it an easy decision for MICE organizers.

Wang: MICE is our key target segment. The Azure Qiantang is an impressive, opulent setting for an important business meeting or event. Its seven distinct, spacious meeting rooms are awash with natural light through floor-to-ceiling glass windows, and stunning river views, as well as its Grand Ballroom spanning 650 square meters and its own 312sqm foyer, the hotel provides expert services, state-of-the-art technologies, and intuitive concierge assistance. The knowledgeable Luxury Collection Concierge helps in booking tours, and is always delighted and eager to share information about the indigenous treasures waiting to be discovered in Hangzhou.

Besides the hardware, we offer special themed coffee breaks including indigenous elements associated with Hangzhou, such as “Dingsheng Cake” and “Peanut Candy,” prepared live during the coffee break time.

We foresee a switch from an era where all attention was surrounding West Lake to an era where the Qiantang River will gain more and more attention. We expect Qiantang to become a hot destination and attractive MICE venue.

Xu: Positively yes. By saying this, I gained confidence from the city’s Tourism Commission, which is promoting the city heavily. A downtown location, approachable luxury JW brand, over 2,000 square meters of meeting function space and upscale service contribute to our confidence of winning more MICE business.