TURNING NEW MONEY INTO OLD

15

The Shangri-La is once again chosen as the most popular hotel brand by Chinese HNWIs and the Hilton remains second favourite. The Peninsula,

who were 5th last year, have risen to 3rd. The Sheraton, Park Hyatt and the Four Seasons have all increased in popularity compared to last year.

On the Hurun Rich List 2012, Wang Jianlin of

Wanda Group is the largest owner of international brand

five star hotels in China. At present, Wanda Group has

more than 50 hotels open or under construction. There

are also several entrepreneurs on the Hurun Rich List

2012 who own companies that have five or more hotels.

They are Deng Hong of Chengdu Exhibition Center, Xu

Rongmao of Shimao Group, and Zhang Li of R&F

Properties.

*Index calculations: Based on the percentage of preference from those interviewed. Score is out of 100, the

higher the score, the higher the degree in popularity.

Shangri-LaHilton

PeninsulaSheraton

Grand HyattThe Ritz-Carlton

Park HyattMandarin Oriental

Four SeasonsMarriott

100 76 73 64 61 58 57 56 50 47

Chinese HNWIs’ Preferred Hotel Brands TOP 10

Hotel Media Expenditure TOP 10

Hotel Index

Source: The Chinese Millionaire Wealth Report 2012

HiltonSheraton

Shangri-LaIntercontinental

MarriottWestin

Club MedSofitel

The Ritz-CarltonKempinski

Total

453026221815121187

194

There are four luxury hotel brands whose media investment is over 20 million RMB,

with Hilton spending the most. Generally speaking, print media is the dominant media

type in the luxury hotel industry. Apart from exposure on print media, Hilton,

Inter-Continental and Westin also used out-of-home media. Ritz - Carlton focused more

on the internet, accounting for 19% share of its total media investment.

Hotel Media Expenditure (CNY Million)

China’s Largest Owner of 5 Star Hotels

Wang Jianlin (Chairman Wanda Group)

Luxury Hotel Brand Best New ArrivalWanda Hotels & Resorts

Hurun Best of the Best Awards 2013

Source: Hurun Report Chinese Luxury Consumer Survey 2013

Part 5: Top Travel Destinations amongChina’s Wealthy Consumers

20

Last year’ s top 4 Chinese domestic destinations held on to their

rankings this year, led by Sanya and HK respectively and followed by

Yunnan and Tibet. Tibet has seen a marked increase in preference, now

listed as a preferred choice by 23.9% of Chinese HNWIs, up from 17.3%

in 2012. Xiamen and Sichuan both made the top 10 this year, up from

11th and 13th respectively the year before.

Source: Hurun Report Chinese Luxury Consumer Survey 2013

SanyaHong Kong

YunnanTibet

HangzhouXinjiangMacauXiamenSichuanQingdao

47.7%38.0%28.1%23.9%17.2%15.5%15.3%14.9%13.0%11.1%

Region Popularity

Source: Hurun Report Chinese Luxury Consumer Survey 2013

FranceUS

SingaporeSwitzerland

UKItaly

AustraliaDubai

GermanyMaldives

JapanCanadaKorea

ThailandNew Zealand

34.0%33.8%26.5%23.1%22.2%20.9%19.4%17.1%16.2%13.9%13.5%12.6%12.0%11.1%10.9%

Region Popularity

In a repeat of the previous year, France and the US are still the most

popular international travel destinations. Australia dropped from third to

seventh place, falling out of the Top 3 where it had comfortably sat for three

successive years. The London Olympic Games has presumably had an

impact on the popularity of the UK, which has jumped from 13th in 2011 to

5th place. Among Chinese billionaires, the UK is even more popular and is

ranked 3rd, with a 31.5% preference score. Germany and Italy made the

Top 10, meaning that half the list is made up of European countries.

“It’s interesting to see how different the travel aspirations between north and south HNWI Chinese

can be, with trips to Japan and Korea featuring strongly for Shanghainese, but hardly at all for those from

Beijing who are much more driven by destinations in Europe and the US.”

– Paul Hicks, CEO of GHCasia, leading PR agency in Asia specializing in travel and hospitality.

Luxury holiday home ownership among China’ s wealthy is up to

57%, with overseas holiday home ownership at around 32%. Among

billionaires, domestic holiday home ownership is at a giant 79% and

international holiday home ownership is at 50%.

Sanya remains the most popular place to buy a holiday home in

Greater China. The popularity of Hong Kong is on the rise, with 13%

owning a home there and Australia is the most popular place for Chinese

millionaires to own an overseas holiday home.

Sanya, HK and Yunnan Continueto be the Hot Travel Spots forChinese Luxury Travelers

Preferred InternationalLuxury Destinationsamong Chinese Luxury Consumers

Preferred Domestic Luxury Destinations

Preferred International Luxury Destinations

Country/Region Popularity

Chinese Tourist Spending PatternsChinese Tourists Outspend Russians, Japanese and Americans CombinedAccording to Statistics from Global Blue

Source: Global Blue statistics on Chinese traveler’ s tax free shopping spending 2012

123456789

10

ChinaRussian Federation

JapanIndonesia

USThailand

BrazilTaiwan

SwitzerlandMalaysia

24%16%4%4%3%2%2%2%2%2%

Chinese shoppers are for the third consecutive year ranked No 1 in terms of spending

on tax free shopping, representing 24% of all tax free shopping purchases made

within Global Blue. Chinese shoppers now outspend Russians, Japanese and

Americans combined.

Global Tax Free Shopping (By Nationality) TOP 10

22

Galeries Lafayette Haussmann, France