Xiamen’s luxury hotels expand services, upgrade menus and draw MICE with new tours and facilities

The seemingly unstoppable growth in Xiamen’s upscale hotel market continues apace, with the city now counting 21 five-star hotels and more on the way in the second half of the year, according to local tourism bureau figures.

“I remember when I was here from 2004 to 2008, Xiamen did not have that many international chain hotels,” recalls Richard Hng, general manager of the Shangri-La Hotel Xiamen. Times have changed and hotel guests in Xiamen have never had a wider selection of premium options.

Occupancy rates remain stable even though increased competition means that companies are juggling market share and pricing constraints. “Occupancy or average daily rates, sometimes you have to strike a balance,” says Millie Tsui, general manager of the Marco Polo Xiamen.

Hoteliers are also looking to boost revenue by servicing customers in more ways than simply providing an amazing place to stay, although that remains a primary focus. “The direction we’re looking at is a focus on food and beverage sales in addition to our rooms business,” Hng says. That means feeding the needs of both in-house guests and local office workers, he explains.

As Xiamen is a holiday destination and a bustling economic centre, the typical client for upscale hotels is a fairly even mix of meetings, incentives, conventions, exhibitions (MICE) business and leisure travellers. “MICE is about 35 per cent, corporate is about 30 per cent and the remainder is leisure groups,” notes David Katemopoulos, general manager of Le Meridien Xiamen.

Tsui foresees an increase in leisure tourism because “Xiamen has become one of the most famous resort areas in China”. She adds that the city’s hotel rates offer a better proposition than other domestic holiday destinations. “Hainan can be triple Xiamen’s room rates, and even during public holidays, our rates[are] more reasonable.”