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GreenTree to branch out in the US

By Michael Barris in New York | China Daily | Updated: 2013-06-25 07:42

Green Tree Eastern includes 25 four-star hotels located in business centers that serve guests who want a "green, healthy and high-quality lifestyle".

GreenTree Alliance includes 100, three- or four-star hotels that incorporate natural settings into their design.

And Vatica comprises 10 hotels, targeting young white-collar travelers who prefer a location that supports a "green", "low carbon" lifestyle.

Xu is launching his expansion bid amid an improving outlook for the US hospitality sector, which was hard hit by the global economic downturn of 2008.

"Now is probably the time to buy hotels," hotel lawyer Jim Butler wrote in the HotelLawBlog.

"All of the fears that have been endlessly rehashed these past few years - an uncertain economy, continuing high levels of unemployment, the election, the fiscal cliff, troubles in Europe - did not prevent business or leisure travelers from taking trips and staying at hotels."

Butler predicts that the hotel industry "will steadily improve for the next five years".

That view is echoed by PriceWaterhouseCoopers LLP, which sees rising room demand and revenue per available room, a closely watched industry performance metric, boosting the industry occupancy rate to 62 percent this year, the highest level since 2007.

Xu's own prediction is that "the US hospitality market will continue to perform very well," at least through 2017, aided by strong demand in the US South and West Coast as well as New York City.

But Xu's forecast has one big caveat - that "the economy for the US and especially China will not have a major collapse".

Xu is no stranger to navigating economic ups and downs.

Concentrating mainly on his business interests in China years ago allowed him to avoid being dragged down by the US subprime mortgage crisis and financial crisis that brought on the global recession.

Xu's international business experience has led him to stress the importance of treating people fairly.

He has a theory that some cross-border business ventures founder because the leaders fail to build genuine relationships with stakeholders, including employees.

"If success is driven by the market, then that kind of opportunity cannot be transferred," he said.

He added that he believes his focus on "effective and efficient" management will produce success in the competitive US marketplace.

"Since we have been able to do that in China, we should be able to do that back in the US," he said.

If that happens, Xu's work commute just might get a bit easier.

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