Earlier this year, he wrote in his blog about the excitement in China generated by the news that the Dalian Wanda Group plans to invest $ 1.09 billion to build and operate a luxury hotel in London. At the time of its announcement (made in the summer of 2013), it was the first luxury hotel venture announced by a Chinese company outside China. Since then, Dalian Wanda has added a luxury hotel project in Madrid just last summer, it advises Chicagoans a third-tallest skyscraper $ 900 million building in the city will open, housing Lakeshore Drive East a luxury 240-room, five-star hotel, luxury apartments and commercial premises in 2018. The US markets also led by Dalian Wanda include New York, Los Angeles and San Francisco.
This is only the beggining. Recently, Anbang, eighth largest insurance conglomerate China surprised the entertainment community with $ 1,950 million acquisition of the iconic Waldorf-Astoria-the highest price ever paid for an existing hotel in the US .. Not to be outdone, in October China Insurance Group Corp. invested Sol AUS $ 463 million (about US $ 399 million) in the high-profile Sheraton on the Park Sydney, the payment of approximately $ 716,000 per room; and in November, based in Shanghai Jin Jiang International Holdings Co. bought Louvre Hotel Group based in Europe for about $ 1.2 billion.
Hotels are not the only targets as Chinese investors to explore investment opportunities abroad. Last year, the food industry of America was a hotbed for the purchase of Shuanhui of Smithfield Foods for $ 4.76 billion and, in June, people in Virginia noted that Tranlin Paper Co. of China had invested about $ 2 billion in a paper plant and fertilizer are expected to create 2,000 local jobs by 2020.
In recent years, Chinese money has flowed into the US, compared with $ 58 million in 2000 to $ 14 billion in 2013. Overall, the Chinese investment in the US currently amounts to about $ 40 billion, according to Deloitte, Chinese investors are now the second largest foreign investor group, after Canada, the commercial real estate market, with a share of 8% of the total cross-border investment. As the South China Morning Post said recently, Chinese investment in the US now exceeds US investment in China.
Boosting Chinese investment here and elsewhere are the forces that are almost identical to those that attracted the Japanese investment abroad three decades. Fortune magazine reports China has excess savings ($ 4 trillion in foreign exchange reserves), so the valuation of US and European assets attractive due to Chinese private investors, foreign assets delivered exceptional performance.
At the same time, Chinese consumers are interested in buying everything American. They also feel that their assets are better protected in the US .. Today, these consumers represent more than 85% of investors who have applied for US EB5 visas that foreigners will invest more than $ 500,000 each in the CNBC reported US .. these people mostly put their money in assets that considered the safest: US real estate.
So, given this context, what can we expect for the hospitality industry? Simply this: the transformational change is coming here in the US and abroad. Note that 100 million Chinese are now traveling outside China and industry leaders expect this number to grow to 200 million in the next five years or less. Chinese hotel companies such as Dalian Wanda expect their compatriots to provide a solid customer base that can draw as they expand abroad-like American and European travelers provide the basis and impetus for global expansion mass of its brands, powerhouse grown as Hilton, Sheraton, Accor, Marriott and other decades.
In today's world, while other markets such as Russia, Korea and Japan are growing, only China has the resources and the volume of travelers to follow the pattern of growth in the United States. Now, one of its brands, Home Inns, classified in the top 10 global hotel brands in the world in terms of rooms. Others will soon follow suit.
The conclusion is clear. At the global level and in the US, brands and Chinese investors will grow significantly. This trend is important not only for students of the industry, educators and strategists of the company to pay attention, but also for local communities and the traveling public in general.
http://www.forbes.com/ by Ed Fuller
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