The 325-room voco Xiamen SM City adds a new revenue stream to the group’s largest property platform in China, reflecting a strategy that increasingly combines retail, offices, lifestyle and hospitality assets.
While China’s growth has slowed from its earlier highs, SM Prime executive committee chair Hans Sy said the economy continues to expand at a pace that supports investment and consumer spending.
“People says the economy is bad. But it’s not true. They’re still having 5-6 percent growth,” he said in an interview last week.
Sy attended the June 1 inauguration of the hotel alongside other SM Prime officials, including his son Hans “Chico” Sy Jr., president of SM Engineering Design and Development Corp., and SM Supermalls president Steven Tan,
A bigger platform
Located within the SM Xiamen complex, the four-star hotel is directly connected to one of the group’s largest overseas developments, which has expanded steadily since opening as a mall in 2001.
Operated by InterContinental Hotels Group, the property targets both business and leisure travelers through its meeting facilities, executive lounge and family-oriented amenities.
The long game
The opening also aligns with SM Prime’s decision to focus future China investments on Fujian province, the birthplace of SM Group founder Henry Sy Sr., rather than expand into new mainland markets.
Currently, three of its nine malls in China are located in Fujian. SM Prime is the Philippines’ largest mall developer, operating 90 malls nationwide.
—Edited by Miguel R. Camus
