Marco Polo Hotels to Expand its Portfolio

Marco Polo Hotels, a long established Hong Kong-based hotel group and the hotel management company of The Wharf (Holdings) Ltd, will almost double its hotel portfolio in the next five years as it continues its ambitious expansion plans in the Asia Pacific region.

With three new hotels launching in 2014, the Group has also announced the opening of a further six properties in the region, predominantly in China within the next five years.

This includes mid-tier to deluxe China projects in Changzhou, Chengdu, Guiyang, Wuxi, Chongqing, Tianjin, Changsha and Suzhou, as well as further development in the Philippines; thereby substantially expanding a Marco Polo network in the Asia Pacific region. The Group will also launch a totally new brand within the Marco Polo Hotels portfolio in 2014, which will target the next generation of discerning travellers and raise the Group's profile.

Marco Polo is a byword in Asia for superior business-oriented accommodation and pre- eminent positioning within key business, leisure and cultural centres. With a current portfolio of 13 owned or managed hotels across Asia Pacific and a parent company whose history spans over 125 years in the region, the Group's Asian heritage is the driving force behind its expansion strategy. The Group's long term strategy is a continued growth path within the APAC region, focusing on China's key gateway and secondary cities; emerging cities with high growth potential. As evidenced by the successful introduction of Marco Polo Lingnan Tiandi in Foshan to the China market in 2012, Marco Polo is adept at transferring its longstanding knowledge of local market trends and industry forecasts to emerging Asian cities to propel the brand's development.

The vital components of the Group's strategy execution include the development of new properties, a series of re-branding initiatives, the repositioning of existing hotels to adapt to the changing demands of the global business traveller, and the establishment of new joint venture opportunities. It has excelled at launching properties within some of Asia Pacific's most prominent commercial and shopping districts, including its three Hong Kong properties which remain integrated within the city's largest shopping complex, Harbour City.

Mr Eric Waldburger, President of Marco Polo Hotels said of the Group's expansion: "Marco Polo Hotels has a longstanding reputation for sustainable growth within Asia Pacific's prime real estate locations, so the development of such a large-scale expansion strategy was always going to be well-considered and carefully formulated. Following five years of planning, we are now beginning to see the fruits of our labour and are confident of the continued success of the Group both here in Hong Kong and on the Mainland".

He further commented, "The impending launch of a new brand within the Group's portfolio is an exciting new venture and a very different offering to our current brand. We are optimistic that its unveiling next year will further cement our reputation as one of the leading hotel groups in Asia and introduce our hotels to a whole new generation of travellers".

In the first half of 2013, the total revenue of the group increased by 6% to HK$689 million. Consolidated occupancy of the three Marco Polo hotels in Hong Kong reached 81%, with an increase of 6% in average room rate.