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Fairmont Opens Its First Property in China

The Toronto-based company expects to improve its recognition in Asia by opening three properties this year. Despite the current economic crisis, luxury properties continue to open in Beijing,  including the Park Hyatt and the Four Seasons.
By Helena Iveson
July 27, 2009 | 10:45 P.M.

BEIJING—Thanks to Beijing’s building boom during the past few years, the city’s skyline has more than its fair share of interesting buildings, from the quirky CCTV Building to the supertall China World Tower III. Now the downtown central business district has another eye-catching presence: the new, 222-room Fairmont Beijing, the latest property from the luxury operator Fairmont Hotels & Resorts and a joint venture with Thailand-based Reignwood Group.

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Hans Hordijk

The hotel’s rose-gold glass curtain façade is a reimagining of a traditional Chinese gate, which is fitting because the hotel’s arrival marks the brand’s entry into the Chinese market. The design by Paul Tange & Associates is a bold and energetic synthesis of the modern and traditional, said Hans Hordijk, the hotel’s general manager. The rose-gold color is a combination of two important elements to Chinese people – red being the heart of China and gold for dynasty and reflecting luxury, said the Dutch national.

Just as the dazzling skyline has changed quickly, so has the city’s hotel industry. The smattering of five-star options became a flood in the lead-up to the 2008 Olympic Games. Despite the current economic crisis, more luxury properties continue to open in Beijing, including the Park Hyatt, whihc is located 200 meters down the road from the Fairmont Beijing, and the Four Seasons, which is scheduled to open at the end of 2009.

However, many in the industry believe the luxury market is oversaturated. Additionally, the industry is dealing with the double whammy of business travel decline and the H1N1 virus emergence. Performancewise, revenue per available room in Beijing in May was US$45.54 and occupancy was 48.4 percent, according to STR Global, but Hordijk said those statistics aren’t keeping him awake at night.

“Our opening date couldn’t be more perfect, and we’re positive the market will recover more toward the end of this year and early next year,” he said.

To differentiate the Fairmont Beijing from other five-star properties, the hotel has used social networking sites Twitter and Facebook as part of its marketing campaign.

“We see Facebook and Twitter as mediums that enable us to engage directly with guests or people who are interested in our hotel,” Hordijk said. “It has enabled us to update people about our hotel progress, so that the audience can see how a hotel is put together. We also instituted a countdown that enabled people to see how many days we had left until our opening, which created an awareness that’s more compelling than a sudden announcement of ‘we are open.’”

This is Hordijk’s second stint in Beijing. Previously, he worked at The Peninsula Beijing, but the Chinese capital is a completely different city now, said the 20-year hospitality industry veteran.

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Fairmont Beijing

Hordijk believes the local hotel scene now competes with Hong Kong, where he formerly  served as the food-and-beveragemanager at The Peninsula Hong Kong.

While Fairmont has excellent brand recognition in other parts of the world, thanks to historic properties like The Savoy in London and The Plaza in New York, the Canadian company doesn’t enjoy the same recognition in Asia. Hordijk expects that to change quickly, especially with the reopening of the iconic Peace Hotel in Shanghai at the end of the year and the Fairmont Yangcheng Lake in October. The company’s current development strategy is focused on growing the company through hotel management.

“Fairmont has successfully executed this approach to become a dominant player in the North American market, and we’ll look to replicate this course on an international level in the coming years,” Hordijk said. “With an unrivalled collection of assets, a strong and healthy brand, and an expanding geographical reach, Fairmont is uniquely positioned to cater to the affluent customer base, which will be relevant to travelers in this region.”

“Beijing has changed a lot since the last time I was here, mainly because of the Olympics in 2008,” he said. “That event boosted the number of hotels and the quality of lifestyle. The luxury market has exploded. It’s a more open society, yet Beijing still has the historical and traditional Chinese culture, which I always find fascinating.”