1. My Opinion of China Hotels

2. About Me Philip Wei ( 魏黎 ) Director of Sales & Marketing Crowne Plaza Resort Yalong Bay Sanya M.P.: 13876201988 Philip.wei@ichotelsgroup.com  Intercontinental Hotels Group 9 year  Shangri-La Hotel & Resort 3 year  Gloria Regional Office 1 year  Hong Fu Hotel Xinjiang 2 year

3. Current Status Comparison of International Tourist Scalar 2004 2005 2004 2005 Person-time: 766 million 808 million 2004 2005 2004 2005 Person-time: 766 million 808 million International Tourism up by 5.5% to 808 million arrivals in 2005 International Tourism up by 5.5% to 808 million arrivals in 2005

4. Airlines China Europe China Airlines Lufthansa Airlines Virgin Airlines France Airlines Europe Airlines Finland Airlines Argentine Airlines Aircraft scalar of Europe market

5. China-Europe flights market will increase three times. In the coming four and five years, the market will have more than 600 weekly flights. Airlines have the non-stop flights and airline-airports will from the 29 increase to the 65 in 2019. By then, there will be nearly 20 European and Chinese airlines compete in the market. In the coming four and five years, approximately 120 aircrafts in flight between Europe and China. The market can see all the long-range aircraft, the number of seats ranging from 180 to 500. Competing airlines excess of the quantity and market will determine the composition of this fleet. Increasing competitive pressures will limit the growth of average size of aircraft. In China-European market, this growth will remain flat.

6. Do you know How many Star-rated hotels in China ? Total above 3-Star hotels in China 2669 05’ 06’ 07’ 1820 2669 2833

7. International Brand Hotels Intercontinental Hotels Group StarwoodMarriottHyattHiltonAccor Four Seasons Ritz-Carlton Ritz-Carlton Howard Johnson Days Inn Ramada

8. Asian Brand Hotels Shangri-La Hotel & Resort Meritus Hotels

9. Chinese Brand Hotels GloriaJin-jiang White Swan Garden Hotel Jinling Hotel

10. Key cities in China Beijing Shanghai Chengdu Guangzhou Chongqing Shenzhen NanjingXi’an Dalian Qingdao Hangzhou Cities A: Cities B: Cities C: Taipei Sanya Gansu Taiyuan Zhenzhou Changsha Guiyang Kunming Lanzhou Lasa Wuhan

11. Current Status Comparison of Brands hotels expansion scalars Foreign Chains ’ 05 ’ 06 ’ 08 Intercontinental Hotels Group 54 80 180 Starwood 18 22 33 Marriott 39 50 80 Asian Chains Shangri-la 17 20 37 Meritus 2 4 10 Chinese Chains Gloria 11 16 30 Jin-jiang 79 89 100

12. Type of cooperation  Own Hotel: Shangri-La, Gloria, Meritus  Management Hotel: IHG, Starwood, Hyatt, Accor, Marriott  Franchise Hotel: Ramada, Days Inn, Howard Johnson Howard Johnson

13. Charge Management Mode  Management IHG Starwood Marriott Starwood Marriott Accor Accor  FranchiseRamada  Franchise Ramada Days Inn Days Inn

14. Market Business Elements  FIT Business and Leisure travelers  Internet  MICE  Tour Groups High price High quality High price High qualityPrice Low price Insure volume Low price Insure volume

15. Human Resource Tourism school Tourism school  Understaffed Periodic training Floating employees Floating employees  Cities A 5~6 Foreign experts Cities B/ Cities C 2~5 Foreign experts Cities B/ Cities C 2~5 Foreign experts

16. Relation Ship Government relation Customer relation Owner relation

17. Potential Opportunities in China  Big city still want top brand hotel  Too much potential medium cities  Resort Destination Development  Real estate of China high-speed developing  More and more Medium hotels open continuously such as IBES, Holiday Inn Express

18. Face weakness  Cases:  Mar,06 Hilton remove from Shenzhen Pengnian hotel, which they just took over for 1 year  Jan,06 Hong Kong China Travel took over Hilton Nanjing  Apr,05 Hilton was compelled removed from Dalian  Sep,05 Nanjing Dingshan hotel stopped cooperate with Shangri-La  04 Crowne Plaza was compelled removed from Shijiazhuang  Higher operating costs of International Hotels;  Professional managers are strangers for the domestic market and culture;  High staff turnover and a shortage of local professional personnel;  Most of owners are impercipient about the weakness of international hotel groups management in China; Above deficiencies disturb international hotel groups expand in the Chinese market. Above deficiencies disturb international hotel groups expand in the Chinese market.

19. Sheraton Resort Sanya

20. Paradise Hotel Jiuzhaigou

21. Grand Hyatt Shanghai

23. The top brand hotel of Spain come into China 2007 in Shanghai with 600 rooms

24. More information of hotels in China

25. Thank you, Welcome to China!