Nanjing’s hotel sector gains new momentum with approval of high-speed train

Pictured: rendering of Andaz Hexi Nanjing.

A new high-speed train line linking three provinces in China’s Yangtze River Delta could be good news for hoteliers in one of the cities it will pass through, the capital of Jiangsu province, Nanjing.

The cultural hub in eastern China suffered a slight decline in the rate of development of its hotel projects over the past year, but news of the rail’s quick green light could revive the pipeline.

Economic boost

The long-awaited Shanghai-Nanjing-Hefei high-speed line was recently given the green light, after the State Council, China’s cabinet, proposed the infrastructure project in 2013.

After nearly a decade of discussions, preliminary plans have received the green light from Chinese authorities, along with a total investment of 180 billion yuan ($26 billion), aimed at further integrating the larger economic circle. from China.

welcome bargain

Nanjing being one of 16 stations on the line could attract many more domestic and international business travelers to the city, a welcome boon for local hotels. Although there is no current timetable for the completion of the rail project, global hotel chains may want to step in on the ground to have additional capacity ready for opening.

This could reverse a recent small downward trend in the upscale hotel pipeline recorded by the TOPHOTELPROJECTS database. A year ago there were 46 projects under development, encompassing 9,648 keys, but our latest information shows there are currently 44, totaling 9,246 rooms, a drop of 4% each.

Uniform Segmentation

The high-end hotel segments are fairly evenly split in the pipeline, with 55%/24 projects in the five-star luxury category, with the remaining 45%/20 projects being high-end four-star entries.

After a lull in development this year, with just three more projects to deliver, the pace picks up in 2023, when at least 14 upscale hotels – 32% of the current pipeline – are set to open. 11 others will follow in 2024, but the remaining 16 are not yet definitively scheduled or are expected in 2025 and beyond.

Diversified pipeline

There is a wide range of international chains with an interest in this cultural Chinese city, but in terms of hard brands, Hilton Hotels & Resorts is currently in the lead with three high-end projects, followed by DoubleTree by Hilton, plus Marriott Hotels & Resorts. Resorts, Club Med and IHG’s Hualuxe Hotels & Resorts, all on two developments.

One of the main hotels on the way to Nanjing is the 365-key Andaz Hexi Nanjing, located at the top of Nanjing Metro Yuantong Station. Part of the Nanjing IFC Tower, the hotel will showcase panoramic cityscapes from its top-floor meeting and dining space. The skyscraper will also house a shopping center and offices. The five-star boutique hotel is expected to open in the second quarter of 2023.

river rival

Another upcoming landmark will be the Mandarin Oriental Hotel Nanjing, located on the Qinhuai River. The hotel will include 106 rooms and suites with a view of the river and the old city walls. three restaurants and bars include an all-day dining option, a Chinese restaurant, and a lobby lounge.

There will also be a range of adaptable meeting rooms and a grand ballroom which will host events and social functions. The Mandarin Oriental’s on-site spa offers treatments and therapies, as well as an indoor pool and fitness center.

Jose P. Rogers