In an exclusive interview, Michael Henssler, President of Kempinski Hotels in China, has spoken about NUO, the first luxury hotel brand created in China for Chinese consumers.

When most international luxury hotel chains are expanding, especially in Asia, you have recently announced stopping your development with the 30th hotel in China, by 2015. Will the NUO project take the place of future openings?

As a Quality driven company, you are certainly correct in the fact that Kempinski will be limiting its growth to keep its exclusiveness as well cherishing its European heritage.

This is where NUO comes in. In an ever-growing market such as China, which is dominated by Western Hotel brands, NUO will offer a refreshing alternative and offers promising growth with the first deals in Beijing and Shanghai being confirmed.

You have developed a partnership with a state entity in China, to create a new Chinese luxury hotel brand, NUO. What were the reassuring motives behind your decision?

Over the last 25 year, we have built up a very deep and trusting relationship with our joint venture partner Beijing Tourism Group. The success of this relationship has lead us to venture new paths together. Our position and knowledge of the Chinese market will help us in building up NUO nationally with the goal of international expansion in the coming future.

Which are the main challenges facing luxury hoteliers doing business in China?

The immense growth in recent years which has and will continue to attract many international operators as well as a growing number of domestic brands, has already lead to a noticeable oversupply in certain cities. This is where quality will become the differentiating factor as price is not anymore the single most deciding factor for Chinese customers, who become more selective and quality conscious.

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