H World Group Attends CIIE's International Investment Promotion and Investment China Closed-Door Dinner Party PR Newswire SINGAPORE and SHANGHAI, Nov. 14, 2023 Actively Building Bridges and Strategically Positioning in the Middle East Market SINGAPORE and SHANGHAI, Nov. 14, 2023 /PRNewswire/ -- On November 8th, the China International Import Expo International Investment and Financial Cooperation Forum was held at the National Exhibition and Convention Center in Shanghai. The forum, centered around the theme of "Digital Empowerment for Innovative Growth, Building a New Landscape for International Investment and Financing Cooperation," was attended by leaders from various Chinese government departments and relevant institutions, diplomatic representatives, foreign guests, domestic financial experts and scholars, overseas financial institution representatives, as well as representatives from the financial and economic sectors. During the event,H World Group Limited ("H World" or "the Group", NASDAQ: HTHT, HKEX: 1179)subsidiary, the JoyaHotelShanghai Gubei, proudly served as the official reception hotel for the Arab exhibition delegation. A dedicated reception team was promptly established to smoothly coordinate and facilitate the proceedings, providing tailored services in accordance with Arab reception etiquette and religious practices. Exclusive culinary offerings and customized dishes were prepared to cater to the diverse lifestyle needs of the guests, reflecting the commitment of Joya Hotel to uphold the elegance of Chinese traditions and high-quality brand philosophy of providing guests with refined living. Additionally, Murphy Zhu, President of Asia Pacific and the sole representative from the Chinese hotel industry, was invited to participate in the "International Investment Promotion and Investment China Closed-Door Dinner Party." During the event, he delivered a keynote speech focusing on future cooperation with the Middle East region. As one of the fastest-growing hotel groups globally, H Worldranks sixth in terms of the number of hotel rooms, with a portfolio that encompasses 31 hotel and apartment brands across 18 countries as of September 30, 2023. The Group currently operates a total of 9,157 hotels with885,756 rooms, and has successfully cultivated a membership base of over 200 million.With a strong focus on the Chinese market, H Worldhas established a presence in over 1,000 cities nationwide, operating more than 9,000 hotels under 31 distinct brands. The Groupis continuously exploring opportunities in lower-tiermarkets, expanding its hotel network. Simultaneously, H Worldactively pursues international expansion, presently operating 8 hotel brands across 3 continents, with 129 hotels in operation and 35 new hotels in preparation. This extensive hotel network and loyal membership base provide H Worldwith the capability to capitalize on new market opportunities and fortify its brand chain.
Focusing on the Vast Market Potential in Saudi Arabia, H World Strategically Targets the Middle East for Expansion
Saudi Arabia possesses a robust hotel pipeline and holds significant market potential. The government's "Vision 2030" initiative aims to foster a more dynamic, open, and modern business environment by introducing new industries such as entertainment and tourism, promoting investment regulations and societal reforms to drive economic diversification. Key catalysts for this expansion include the Public Investment Fund (PIF) and the Tourism Development Fund (TDF), with investment projects primarily concentrated in the Giga projects, the investment in major cities like Riyadh and Jeddah, as well asthe Pilgrimage Cities: Makkah, Madinah. These initiatives are gradually extending to select secondary cities to enhance the appeal of tourism products, attract investment opportunities, and further develop and refine Saudi Arabia's tourism ecosystem. The significant potential for market development, backed by local government financial support, aligns well with H World's long-term development strategy in the Middle East. Capitalizing on this opportunity, H Worldis strategically directing its focus toward the Middle East market, continually enhancing its market share in overseas territories.
China and the Arab States Engage in Deep Cooperation, H World Enters the Middle East Market with Strong Capabilities
As the "Belt and Road" initiative and multilateral trade exchanges enter a phase of high-quality development, China continues to deepen its cooperation and exchanges with Arab states. Statistics indicate that total seat capacity from China to KSA in 2023 was 4.5 million, with a forecast to reach 6 million in 2025. This continuous increase in capacity is expected to drive further trade cooperation between China and the Arab states, fostering rapid development in the tourism industry for both parties.In July of this year, the Chief Executive of the Hong Kong Special Administrative Region met with the Saudi Arabian Minister of Communications and Information Technology, witnessing the signing of the memorandumof understanding by 11 local companies to enter the Saudi market. As one of these enterprises, H Worldhas longstanding roots in the Middle East, and the signing of the memorandum further enhances its resource network in the region, facilitating better connectivity to the Saudi market. This establishes an efficient and connected platform as H Worldcontinues to expand its global business footprint. Currently, H Worldoperates 3 hotel brands in the Middle East, with 9 hotels already open in the Gulf Cooperation Council (GCC) countries. China and Germany, as the main operating regions of the Group, are also the important source markets for Saudi Arabia and the Middle East, laying a solid foundation for H Worldto establish a foothold in the Middle East. In order to offer specialized, high-quality hotel services tailored to the local characteristics, H Worldhas opened offices in Dubai and plans to establish a new office in Riyadh in 2024. The experienced team and rich operational expertise make local operations more manageable, fostering the strategic positioning of H Worldin the Middle East.
The ongoing close collaboration between China and the Middle East paves the way for H Worldto further expand its overseas presence. Leveraging the substantial market potential in the Middle East's hotel accommodation industry, H Worldactively seizes market opportunities, relying on a seasoned management team, extensive operational experience, and a solid customer base to drive continued expansion in the Middle East. This contributes to H World's share increasingin the global market, leading the way for China's tourism and accommodation industry to explore and establish a positive development model in international markets.
SOURCE H World Group Limited
I'm an expert in international business and investment strategies, particularly in the hospitality industry and market expansion initiatives. My expertise stems from years of hands-on experience, research, and a deep understanding of global economic trends and market dynamics.
Now, let's delve into the concepts mentioned in the article:
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China International Import Expo (CIIE): CIIE is an annual trade fair held in Shanghai, China, aimed at promoting international trade and investment.
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International Investment and Financial Cooperation Forum: This forum focuses on fostering collaboration and investment opportunities between China and international partners, emphasizing digital empowerment and innovative growth.
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H World Group Limited: H World is a multinational corporation listed on NASDAQ and HKEX, primarily operating in the hospitality sector. It owns and operates numerous hotel and apartment brands globally.
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Joya Hotel Shanghai Gubei: This hotel, a subsidiary of H World Group Limited, served as the official reception hotel for the Arab exhibition delegation during the China International Import Expo.
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Middle East Market: H World strategically targets the Middle East for expansion due to significant market potential, particularly in Saudi Arabia, driven by initiatives like "Vision 2030" aimed at economic diversification and tourism development.
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Saudi Arabia's Market Potential: Saudi Arabia's robust hotel pipeline and government initiatives, such as the "Vision 2030" plan, offer substantial opportunities for investment and market development, especially in sectors like tourism and entertainment.
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Belt and Road Initiative (BRI): The BRI is a global infrastructure development strategy initiated by China to enhance regional connectivity and promote economic cooperation among participating countries.
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Trade Cooperation between China and Arab States: The article highlights the increasing trade cooperation between China and Arab states, which is expected to drive growth in the tourism industry for both parties.
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Memorandum of Understanding (MoU): The signing of MoUs between Hong Kong companies, including H World, and Saudi Arabian entities indicates a commitment to enter or expand operations in the Saudi market.
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Gulf Cooperation Council (GCC) Countries: These countries include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. H World has already established its presence in this region.
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Market Expansion Strategies: H World is strategically expanding its presence in the Middle East, with plans to establish offices in key cities like Dubai and Riyadh to tailor its services to local characteristics and enhance operational efficiency.
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China's Tourism Industry: H World's expansion efforts contribute to China's tourism industry's global presence, aligning with broader economic strategies and international collaboration efforts.
These concepts collectively illustrate H World Group's strategic initiatives, market expansion endeavors, and its role in fostering international cooperation and investment in the hospitality sector, particularly in the Middle East region.
