H
ilton Worldwide Holdings is taking advantage of China's struggling commercial real estate market by repurposing vacant offices into hotels. This strategy is part of a broader plan to expand Hilton's presence in China, where the domestic travel market is thriving despite the overall economic downturn. The company recently celebrated the opening of its 700th property in Greater China and plans to add another 100 hotels in the region over the next few years. About 25 of these new hotels will be developed using adaptive reuse of empty office buildings, a model that has gained popularity in recent years.

    According to Clarence Tan, Hilton's Senior Vice President of Asia Pacific Development, there is an oversupply of office space in China and not enough demand for retail space, creating an opportunity for hotels. Landlords facing plummeting rents and high vacancy rates are increasingly turning to hotel operators like Hilton to repurpose their empty properties.

    While some have raised concerns about the state of China's real estate industry, Hilton remains optimistic about the potential of the domestic market, driven by the country's growing middle class and increased local travel. Despite the risks associated with China's slow recovery in international travel, Hilton is confident in the potential of the domestic market.