Hilton Eyes Bigger Slice Of Chinese Growth

　　Hilton Worldwide is ready to accelerate its expansion plans for China and could launch a brand targeted at Chinese travelers, as the owner of the iconic hotel chain strives to keep pace with its rivals in what will soon be the globe"s largest hotel market.

　　Martin Rinck, president of the company"s Asia-Pacific operations, told Dow Jones Newswires he expects China"s hotel boom to be primed for the long term, even as economists are concerned about slowing economic growth amid pressure on exports, house price slumps and rising inflation.

　　The U.S. company, bought by private-equity firm Blackstone Group LP (BX) for $26 billion five years ago, operates a primarily managed or franchised model of around 3,800 hotels and 630,000 rooms.

　　It runs 28 managed hotels in China across four brands--Waldorf Astoria, Conrad, Hilton and DoubleTree By Hilton--with a further 99 in the pipeline. The company is on track to have 100 hotels in China by 2015.

　　Rinck said that while the hotelier"s current projections send a "pretty strong message," it could raise its targets if China"s economic growth accelerates.

　　"There"s no reason why this shouldn"t go up by an additional 10% to 20%," he said.

　　The world"s No. 2 hotel company by number of rooms is set to add two existing brands to its China footprint--Hilton Garden Inn and Hampton By Hilton. Both will comprise smaller "focused-service" hotels, in which services such as wireless Internet and breakfast are included in the room rate.

　　Rinck also said Hilton isn"t ruling out launching a brand targeted at Chinese consumers.

　　"A China brand isn"t on the immediate horizon, [but that] doesn"t mean that we rule out, at some point in the future, having a look at this," he said.

　　"We have sufficient time and room to grow before we launch an additional brand."

　　Last week, rival InterContinental Hotels Group PLC (IHG.LN), the market leader in China with around 160 hotels and the same number in the pipeline, said it plans to launch a new upscale chain in the country, named Hualuxe, from late 2013 or early 2014. The brand is designed specifically for Chinese travelers, with hotels containing tea houses, Chinese gardens and noodle bars. IHG expects Hualuxe to reach 100 cities within 15 to 20 years, and plans eventually to expand the brand into Asia"s other booming economies.

　　Global hoteliers, including Marriott International Inc. (MAR) and Starwood Hotels & Resorts Worldwide Inc. (HOT), are vying to tap into the growth of domestic and international travel among the Chinese.

　　According to United Nations World Travel Organization data, China"s hotel market will overtake the U.S. as the world"s largest by 2025 with around 6 million hotel rooms, and almost double it by 2039.

　　The number of Chinese people traveling abroad is expected to rise fivefold to 100 million a year in the next decade, boosted by rising incomes, increased life expectancy and low-cost airlines.

　　"Domestic travel within China has risen in the last two years from 1.9 billion [trips] to 2.6 billion. The rising affluence and the enhancement in both rail and road transportation driving domestic travel shows this incredible potential," he said.

　　Rinck expressed confidence in the Chinese consumer economy, even if recent forecasts signal a spot of weakness.

　　"We still believe in very healthy growth for China during the course of 2012," he said. Even though China"s economy is growing more slowly than in recent years, at 7.5% a year it is still outpacing the vast majority of the world, he added.

　　Rinck also said further flexibility of the yuan, considered key to increasing global trade and investment, would support growth.

　　"I do believe that further flexibility is good within an agreed range and that is the way the Chinese government looks at it," he said.

　　"The government is putting a lot more emphasis to drive from an export-led to a domestic consumption economy."

　　The yuan is considered by many to be undervalued, favoring Chinese exporters but to the detriment of foreign companies doing business in the country.