Marriott International will continue its Chinese expansion with the introduction of two of its luxury hotel brands in Beijing by the 2008 Olympics.

William Shaw, president and chief operating officer, signed a management agreement with Beijing Guohua Real Estate Co on Friday in Beijing, announcing the plan to have a JW Marriott and Ritz Carlton in the nation's capital in 2007.

"We have 34 hotels in China today, and will open an additional seven this year," Shaw said.

"We will soon become the leading hotel corporation in China."

The 320-room Ritz-Carlton, Beijing and the 591-room JW Marriott Hotel Beijing will be built on the eastern edge of the city's central business district.

Both properties will be part of a massive development complex that will include more than 230,000 square meters of office space, eight residential towers, 160,000 square meters of retail shopping space and a large park and sports center.

The complex, China Central Place, which will cost 8 billion yuan (US$960 million), is one of the major projects being taken up to enhance Beijing's international status.

"As an international metropolis, Beijing still lacks a chain of high-end business accommodation," said Fang Chao, chairman and chief executive officer of Guohua.

"We will work to provide up-scale hotels, apartments and offices for multinational companies which want to establish outlets in Beijing."

The Ritz-Carlton Hotel Co, based in Chevy Chase in the US, manages 57 high-end hotels around the globe.

"Our customers are those who yesterday were in New York and today are in Europe," said Herve Humler, executive vice-president of Ritz Carlton.

The group's first two Chinese outlets were opened in Hong Kong and Shanghai.

"We must have our hotel in Beijing, because if our customers cannot find Ritz Carlton in Beijing, they will go to other hotels next time," said Humler.

The Ritz Carlton is not phased about competition and even the JW Marriott, which will open a luxury hotel next to it, is not considered a threat.

"Our major rival is ourselves. We must continue our work, or we will fall behind," said Humler.

Edwin Fuller, managing director of Marriott International, agrees that the location of the JW Marriott and Ritz Carlton will not be a problem.

He said the hotels have different positioning and styles.

(China Daily April 26, 2004)