Carlson Hotels to go mid-market in China
12 October 2007
The hotel group behind the Regent and Radisson hotel chains is shifting its focus in China and India towards mid-market establishments in second- and third-tier cities, the Financial Times reported. Carlson Hotels has teamed up with the London-based Lotus Investment Fund to raise US$1 billion in expansion capital. The money, which will be leveraged to reach US$3 billion, will pay for the construction of 30 hotels in China and 30 in India by 2011 under the Park Inn and Country Inn mid-market brands. Carlson plans on spending US$15-20 million on each hotel. Most international hotel chains in China still tend to focus on the luxury market in the big cities but Carlson is looking at fast-growing cities like Shenzhen and Zhengzhou.