In Noisy China, Can Soundproofing Sell Rooms? - Wall Street Journal (blog)

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China, with its constant traffic and love of the car horn, is notoriously loud. Thing is, most cheap hotels in the country are situated on busy roads. Will its budget travelers pony up more money for a quiet room?

The people behind the budget chain Ibis say yes.

Ibis, which is owned by French hotel conglomerate Accor, believes it can make its mark in China and charge 10% to 15% more than local competitors for rooms that promise superior Internet service, quality bedding and, most importantly, quieter environments.

"We're soundproofing our rooms," said Michael Issenberg, chairman of Accor's Asia Pacific division, who said that the hotel's design team made it a high priority as a differentiator. "Everybody knows China's a noisy place."

Ibis launched in 2008 in China and now operates 51 hotels there, with 20 more slated to open over the next few years. It had a slow start in China, opening its first 10 hotels with no local players to assist in construction and planning, but now that the brand is established, Accor is loosening the reigns and recently started its franchise program in hopes of attracting wannabe hoteliers.

The competition is stacked: China's budget hotel market is crowded and dominated by domestic brands like 7 Days Inn and Home Inn, which have 722 and 934 hotels, respectively. Even Super 8, owned by Wyndham Hotel Group, has 239 hotels in China.

Continue reading on Scene

17 Oct, 2011


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