Q1: How did Hangzhou’s hotel market perform last year? How did your hotel perform in the same period?

Peter Zaunmayr: The hotel market in Hangzhou in 2016 was greatly impacted by the G20 Summit held in September. The event placed Hangzhou as a premium event destination and created worldwide interest in this city. Since the G20 event, the hospitality market in Hangzhou has seen a significant increase in all market segments.

Chris Dexter: Change is always constant. For the Wyndham Grand Plaza Royale Hangzhou last year, the G20 has given further exposure to a global audience. The spotlight will be positive for the “little Switzerland of China,” growing both a potential influx of foreign visitors in the years to come and further MICE opportunities.

Nicholas Lacey: G20 Summit was certainly a resounding success for Hangzhou hotels, and Hyatt Regency Hangzhou was proud to receive four prominent delegations — in fact we were the only hotel in town to host this many heads of states simultaneously for this milestone event. This was really a special chapter in our hotel’s history. With a great deal of hard work and preparation conducted by our colleagues for many months leading up to the event, it was most gratifying to see those efforts culminate in such a memorable outcome.

Gary K. Chan: After the G20 Summit in 2016, the occupancy rate at hotels in Hangzhou continued to rise. The slow season was shortened as all kinds of municipal meetings and business conferences were held in Hangzhou, giving the city’s tourism industry and hotel demand a big boost. Since it began welcoming guests in September of last year, the occupancy rate of Diaoyutai Hotel has increased, little by little, to 52 percent, while its average price puts it among the top two hotels in the Qianjiang New CBD. The hotel’s architecture as a whole reflects the modern, elegant style of European architecture, while the interior design embodies the aesthetic of the ancient East, giving guests a taste of China’s beauty. A number of high-end brands have held events at Diaoyutai Hotel, including Ferrari, BMW7 System, Land Rover, Van Cleef & Arpels and Louis XIII.

Q2: What will be your hotel’s development strategy over the next couple of years? And, according to you, which particular segment will be the biggest contributor to your future revenue growth?

Peter Zaunmayr: Oakwood Residence Hangzhou is the premium provider of international luxury serviced apartments in Hangzhou.The Hangzhou government has provided the infrastructure for large multinational corporations and new tech start-ups to do business in Hangzhou. We believe over the next few years there will be an increase in demand from both domestic and international companies requiring luxury serviced accommodation facilities for relocating individuals and families.

Chris Dexter: The move towards a service economy ensures a steady growth in all sectors of the business. It’s noticeable that clients are wishing to experience visiting areas of natural beauty, with minimal other visitors around but at the same time wanting a high level of services.

Nicholas Lacey: G20 has certainly contributed to greater awareness of Hangzhou and reinforced its appeal of leisure, business and MICE markets. Hangzhou’s ability to appeal to each of these segments so comprehensively is unique and should result in increased demand in each of these segments throughout the city. For Hyatt Regency Hangzhou, our unique location on the banks of the West Lake will ensure we continue to appeal to the leisure market as well as corporate travelers looking to take advantage of our unmatched location and views. We have recently launched “The Residence” — our residential-style event venue which has added another concept to our event offerings to cater for both MICE clients and for those guests wishing to host a celebratory event with their friends, families or colleagues.

Gary K. Chan: Both vacationing tourists and business people can stay at our hotel, which is located in Qianjiang New CBD, about 5.5 kilometers from West Lake. And while Hangzhou’s hotel industry as a whole is developing, Qianjiang New CBD in particular has been increasingly capturing the attention of the market, attracting more guests and with them more conferences, exhibitions and meetings.

In 2016, Hangzhou’s service industry contributed 80 percent to GDP growth. In addition, the 2016 income of Hangzhou’s tourists was up 16.9 percent from the previous year, reaching 257.2 billion yuan (US$37.29 billion). The number of hotel visits in 2016 reached 141 million, up 13.5 percent from the previous year. The high-speed development of the city and a bullish market have made Hangzhou the most popular destination for tourists and commerce alike.

At the beginning of 2018, Diaoyutai Hotel will be adding a new 900-square-meter conference hall, as well as over 140 new guest rooms (including hotel-style apartments). Our target market will cover tourism, the commercial marketplace and its complementary household marketplace. We are optimistic about this comprehensive mode of operation.

Q3: What kind of role does MICE play at your property right now, and how do you expect that sector to expand this year or in the near future?

Peter Zaunmayr: Primarily, our market is offering relocating clients from multinational corporations a place they can call home in one of our one, two, or three-bedroom apartments during their stay in Hangzhou. By offering them the facilities which are similar to their home environment, plus five-star hotel services, gives our clients more time to focus on what they are in Hangzhou for, whether that be business or leisure. At Oakwood Residence Hangzhou we have venues which can hold meetings, weddings and events for 10 people to 180 people. We have experienced an increase of business since the G20 event in September 2016.

Chris Dexter: The Wyndham Grand Hangzhou has high service quality, and a professional team is always favored by organizers and clients. We do client research on a regular basis according to different industries and purchase updated equipment and facilities which are popular in the market. The hotel is ranked No. 1 on TripAdvisor, has high scores on Ctrip. We have won many quality awards including TripAdvisor, travel+leisure, CBN and many more in the past five years. A great location, friendly service and well-appointed facilities are our unique selling points. We offer tailor-made products and packages to meet different guests’ needs, such as LV opening ceremony, Rolls & Royce and McLaren activities, etc. We have an excellent reputation in the market.

Nicholas Lacey: With the success of last year’s G20, Hangzhou has certainly solidified its reputation as a leading MICE destination, capable of hosting major international events. Hyatt Regency Hangzhou has established a reputation as one of Hangzhou’s leading destinations for the MICE market. As mentioned earlier, we have recently introduced “The Residence” and this addition has been received very positively by our guests. We have projects planned in the near future which will ensure we continue to maintain our status as one of Hangzhou’s leading MICE destinations, supported by warm and detailed service and excellent cuisine.

Gary K. Chan: After hosting the G20 Summit in 2016, Hangzhou’s international reputation increased substantially. Hangzhou is increasingly attaching importance to MICE, and has succeeded in a bid to host the World Council 2017. This fall, the city will be welcoming nearly 1,000 representatives from nearly 100 cities of over 60 countries around the world. And Hangzhou will be the focus of world attention once again when it hosts the Asian Games in 2022.

Hangzhou’s transportation system is continuously improving, while it stands much to benefit from its strategic position in the Yangtze River Delta. The city is increasingly becoming a destination for both international conferences and tourism. The Hangzhou International Expo Center, with an area of 1.2 million square meters, hosts conferences and exhibitions in five big economic zones. In addition, more and more international hotels are entering Hangzhou. All of this promotes expansion in the development of Hangzhou’s conference and exhibition industry.

The Diaoyutai Hotel currently has in operation 162 guest rooms, a column-less, 300-square-meter river-view meeting hall and two 680sqm rooftop gardens. The hotel has been unable to host some large-scale MICE. But, in 2018 we will be installing a 900-square-meter meeting hall, with a column-less field of view, high-end VR equipment, a huge video wall and sound system. Five meeting rooms, all furnished for conferences, will satisfy the needs of hosting MICE.

Q4: Any major trends you’ve seen in the tourism and hotel industry?

Peter Zaunmayr: Hangzhou has seen an explosion of top-end hospitality companies entering the market last year and this trend has continued to grow rapidly. Most of these new hotels have opened on the fringes of the CBD and are attracting the meeting and convention business. We can see with the current upward trend in occupancies and rates this year that the supply of these new properties is needed.

Chris Dexter: Hangzhou has increasingly become more and more famous for the travel industry in China. A combination of the famous West Lake, Xixi Wetland and Longjing tea plantations have greatly increased its reputation along with the introduction of the high speed train from Shanghai and its new international and domestic airport. Hangzhou is a marvelous destination for incentive travel and MICE business as more international five-star brand hotels have opened or will open in Hangzhou.

Nicholas Lacey: With competition and greater choices, there is an increased emphasis on creating connections and a deeper knowledge and understanding of our products and services. This type of experience can only be delivered via the human touch.

An excellent meal, featuring quality ingredients which are expertly prepared is an example of an experience which is desired by everyone, but can only be delivered by passionate and caring people who love what they do. This focus on the core elements of a hotel experience will ensure you stand out from an increasingly crowded marketplace.

Gary K. Chan: The 2017 tourism market environment has become more well-aligned, with guests staying for an average of 2.3 days at hotels in Hangzhou. In 2017, we can foresee that the market has changed from traditional sightseeing to “FIT leisure” and “Hangzhou as a family retreat destination.” This creates opportunity for hotel to develop “online marketing” to draw consumer to book directly; and promote MICE marketing and hotel-style apartment for long stay purposes.

Diaoyutai’s brand belief “A Deserved Welcome” says it all. The staff at Diaoyutai Hotel Hangzhou, follows our heart to provide personalized service to our clients and make them feel like home the moment they step into our hotel. Our electric curtain system automatically opens to welcome guests into their room as they open the door. Our top-notch showerhead and 1.5-meter-diameter Jacuzzi wash away the weariness of travel. An adjustable HDTV allows guests to watch their favorite shows from a variety of angles, and the bedside reading light is comfortably set within reach.

A year into the future, the difference between Hangzhou and other international cities will shrink, as the capacity of its service industry increases. The tourist market is becoming more and more high-end, and with it consumer demand for high-class hotels is increasing.