Economy and Business
Lanson Place strategy for Chinese market
By Chen Qide (China Daily Shanghai Bureau)
Updated: 2010-06-01 17:46
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 The Bureau of the Shanghai World Expo presents Graeme Laird (center), senior vice president of Lanson Place Hospitality Management, a plaque to designate Lanson Place Jinqiao Residences as serviced residences for the World Expo 2010. |
Lanson Place, a late comer to China's serviced residences management business, is trying to bite off more shares from the local market by launching 20 projects within three years.
Focus will be placed on coastal cities where the foreign direct investment (FDI) will go to as well as consideration given to big western cities such as Chengdu in Sichuan province, said Graeme Laird, senior vice president of Lanson Place Hospitality Management.
The company has properties in Singapore and Kuala Lumpur in Malaysia, but China's fast economic growth has encouraged it to change its investment policy, said Laird.
"It's important for us to develop in cities where foreigners are investing hard. That's why we are in China," he said at the opening of its second residences in Shanghai on Friday.
Lanson Place Jinqiao Residences with 206 premium serviced apartments, launched by Shanghai Chengtou Holding City Land, Shanghai Urban Construction and Lanson Place, has been chosen as one of the designated serviced residences for the World Expo 2010.
The company now has three more property management projects in Hong Kong, Beijing and Shanghai. But comparing with Oakwood, Ascott and Shama, its serviced apartments account for a small share of the Chinese market with a big potential for such services, local serviced residences insiders said.
To challenge the fierce competition, Lanson Place will redouble its effort to seek more investment opportunities, said Laird.
"We are looking at the moment all around the country to seek the cities where FDI is increasing for its new projects," he said.
His words were echoed by Karen Li, executive director of Lanson Place, saying the company is considering projects in Chengdu at the moment.
"We are also seeking more projects in Shanghai and other parts of China," said Li.
Laird believed that Shanghai with very high FDI and more foreigners coming to work for multinationals, consulates and banks has more opportunities than any other parts of China.
"There's no reason why the company couldn't have five or more projects in Shanghai," he said. Although whether or not it can achieve its target depends on the opportunity it has, it would like to have 20 properties of management in three years, he said.
The scheme will help the company to raise its China's sales percentage in Asia from the current 20 to 70 in three years, he said.
Lanson Place is looking for locations at Shanghai's Hongqiao business district and Lujiazui financial center. "Opportunities are enormous if considerations are given to cities around Shanghai," Li said.
Laird said most of its projects will be launched by signing management contracts with partners rather than injecting direct investment. But the company will also look at equity properties. "All this, however, depends on the opportunity we have," he said.
