Sometimes I would think it myself that—international brand’s hotel groups do better in many aspects, certainly it was because of system management, historical reasons and so on.
      A few days before, I stayed at a famous state-owned five-star hotel in Beijing. However, in the hotel, the heating installation did not work well, the hot water could not flow out immediately, and the tomb and the razor were not offered. The waiter replied that because they were green hotel, some articles cannot be placed in the guestroom. I held the point that as a green hotel, first they should make the guests live comfortably and conveniently. This five-star hotel’s meal was expensive, but not delicious, and many detailed places did not design well. In a word, I could not live well in this five-star hotel which possesses many historical relics.
      Not too long ago, one of my friends spent more than 1,000 RMB one night to stay at a famous state-owned five-star hotel in Shanghai. In the guestroom, there was not a razor, at last the waiter offered my friend with a razor in lower quality. There’s no doubt that this razor could hardly be used. After arguing with the waiter, my friend bought a razor out of the hotel himself. And he told the waiter he would not live in this hotel any more. A guest spends over 1,000 RMB but cannot use a razor cost only little money. What kind of consumption tide does this hotel want to lead?
      Even though I has pointed out a few managing problems of some famous foreign-funded hotels several years ago, after these years’ fast development, Chinese hospitality market is expanding severely. Out-flow of talents, lagging behind of educational train, imperfection of purchase system, unchecked saving and less knowledge on marketing sales are still some basic problems of current Chinese hospitality development. In China, there are a large number of five-star hotels have the problems like the two hotels in Beijing and Shanghai, which are discussed above. Why? What is the core problem of Chinese hospitality development? Is it the problem of system or the problem of industrial management?
      Besides the problem of system innovation, the core problem of Chinese hospitality industry development is the disregard of quality. The two five-star hotels being discussed above used to be splendid. Why they have started their life in senility? Lacking communication between colleagues, serving spirit and basic consumption standard are the factors which lead to low quality. A number of state-owned hotels only show their management and services to leaders or special relations, and they have less real guests’ services and rational marketing operation.
      We do not believe in foreign-invested hotel groups. They can stand stably in Chinese market for the key reason: they have done their business in their homeland for decades even hundreds of years. Their company culture, managing technology, talent training, marketing network, brand building and service spirit have gone through severe trains and practices, and mature in integration functions. That’s why they can fight a fierce war in Chinese hospitality industrial market.
      Chinese people are clever and hard-working, but why there are so many problems after decades of development in modern hotels, especially state-owned hotels? When talking about the problems of system, many managers of state-owned hotels tells me that he/she is helpless, because he/she was born in China and loves his/her own motherland.
      Looking around in China, BTG-Jianguo Hotels & Resorts, Jinjiang, Jinling Hotels, Guangdong Hotel, etc., these state-owned hotel groups’ development is far not enough. Jinjiang Hotel, Peace Hotel, Beijing Hotel, White Swan Hotel and Garden Hotel, which once influenced an era, but now we can only figure out their contrary shadow under the fierce competition.
      Are we abandoning our bands? No. We cannot abandon our brand!
      Recently I made an interview with presidents of Chinese region from Starwood Hotels & Resorts and IHG. They said that well-known international hotel groups now start their investment in the secondary cite in China. This is a desperate investing tide and fight of hotel brands. It’s amazing to imagine that over 40 famous international hotel groups expand their business in China. If Chinese local hospitality industry can not start a revolution, or if Chinese governments can not lead and support Chinese local hospitality business, Chinese hotels will confront a larger scaled war and suffer a lot. This is scaring. For foreign-funded hotel groups have many distinct advantages, they obtain many support in policy, sources, market, etc. from Chinese government.
      What can Chinese hotels do? Chinese hospitality industry needs more “heroes” from hotel groups, but not from real estate groups.
      Chinese hospitality industry should develop well in the following five years, which is Chinese economic development of “12th Five-Year Plan”. Or, many Chinese traditional hotels will only be an empty exist.