Chat with Jim Spear, co-founder of China Countryside Hotels

The Grameen Foundation field trip has been a boon in more ways than one. On the trip, I met JS and JH. JS, from Beijing, told me about her country home by the Great Wall that also gets let to visitors. I was immediately interested to find out more about the project in Mutianyu Village. As promised, when she got back to Beijing, I got an email from last week with links to China Countryside Hotels, founded by husband-and-wife team Jim Spear and Tang Liang. As for JH, we instantly hit it off when we found out our common interests in developing a social enterprise combining good design, sustainable development and luxury travel. That's how JH and I ended up on an hour-long skype conference chat at 7am this morning with Jim to learn more about his sustainable tourism projects in and around Mutianyu village in addition to setting up luxury guesthouses such The Pavilion:
The Schoolhouse, a restaurant and glass-blowing workshop in a renovated schoolhouse
The Roadhouse, a restaurant
Xiaolumian, a farmhouse restaurant serving noodles


LCL: i'm always looking out for cool places in china like mutianyu, wishing there were more
JS (Jim Spear): Actually, we're just starting out on these village enterprises though I have had a weekend home in Mutianyu (mty) for 15 years

LCL: before we start, let's do brief intros...JH?
JH: i've always been deeply interested in the field of development, and i guess part of that interest stems from having grown up all over the world, thus having this incessant traveller's itch

and the more places i experience (either as a resident or as a traveller) the more i become interested in issues of sustainable development -- preservation of the uniqueness of 'local' whilst benefitting from the advantages of the global, i guess

it was quite by chance that i got to join the grameen foundation sichuan trip, which was a very inspiring trip in many respects
LCL: JH is echoing all my sentiments
JH: and dialogues, experiences, personal reflections etc. that came out of that trip in a way articulated a lot of the ideas that were already floating around in my head, and then i read what you established with the mutianyu project, which seems to be the materialization of everything in a very real way!

two of my passions, travelling and design, that desire to do my bit for the collective, and that dilemma of trying to compromise between the luxury world and the awareness of the real world etc.

so i've always been interested in ways of bridging and bringing together sort of non-profit and for-profit businesses together

LCL: JH is speaking for me as well...and she's doing a great job at it. So Jim, your turn...
JS: we're just taking little steps -- far from perfect. but i think we're on the right track re: sustainability in the village context: local people, local companies, local food, homemade, existing footprints, sensitivity to environment. I am delighted to have the chance to chat with both of you.

i have been living here 23 years -- from the usa -- where i was a phd student at berkeley
LCL: phd in?
JS: political economy re: china/japan but i didn't finish thesis, i took a consulting job in Beijing because i wanted to be where the action was

[consulting on] early jvs in a variety of industries and high tech sales, i started my own trding company that eventually morphed into a wine importer (ASC) and later I worked for many years in the medical field for a NASDAQ company

when i was getting close to 50 and my kids were in college i had a mid-life crisis and chucked everything to move out to our weekend house in mutianyu

JH: haha
LCL: hahaha...jungha and i joke that we are in third-life crisis...hahaha
JH: i was about to say that, haha
LCL: and no regrets?
JS: yeah, haha...life is too short to spend on regrets. of course i have no regrets. i feel i am one of the luckiest people in the world. i have now designed and built 19 houses, made new friends, helped our village, time of my life

when i moved out to the village and re-did my own house a friend asked me to build him a house and the housing part started there. about the same time the mayor sat me down and said: look spear, in case you hadn't noticed, we're having a hard time, you're a rich american and you should give something back, after all we let you live in our village and you should make an investment here to help us

LCL: first Q...how did you pull off buying your first house to begin with? i assume it's not that straight-forward with deeds and stuff
JS: absolutely right. actually we lease peasant residence plots with existing houses on them. not purchase as in freehold.
JH & LCL (at the same time): how long is the lease?
JS: this is also complicated. ranging from 10 to 50 years
LCL: only 10 years??!! and then lease WITH property converts back?
JS: sure, if you don't put a lot into the house it can make sense. we use short term leases for staff housing, for example. the real houses i have done range from 100-900 sqm

market prices have increased dramatically as we have created the demand. so shorter lease costs less money. clients amortize lease improvement over life of lease. not necessarily a good financial investment. BUT that depends. and one client told me recently their mty house was their best invesment (in light of the crisis)

JH: and the range (10-50 yrs) depends on what qualification? and as a foreigner, is it still possible without a local connection somehow to still qualify for a long lease?
JS: period of lease not dependent on citizenship. actual law may limit real estate leases to 20 years. but we have a lot of lawyers who have helped us write what seem to be enforceable leases for longer periods.

LCL: being near the great wall, which is protected...are the laws stricter for such developments as well as building/renovation permits?
JS: it's very complicated and highly political. regulation -- many, many and sometimes competing authorties. this stifles creativity and leads to other issues. i am not against development, just want to help channel it in sustaianble ways that preserve real communities. LCL: were u aware of all the red tape before you started?
JS: red tape? haha. i have been doing business here for decades. my little stuff in the village every bit as complictaed as anything i ever did

LCL: what do you think of Commune?
JS: Commune is very interesting but not for me. I find the houses plopped there - starchitect syndrome. they failed as an enterprise and very poor service/business model. and then brought in kempinski. last time i stayed there was last month. great spa. poor room. they more or less copied the houses to get to 380 rooms. a walled valley. no connection to community. it makes me cry. but there is room in the market for them as well as us.

lots of our customers have been to virtually every five-star hotel and resort. they literally ache for something real

LCL: yes, absolutely...i prefer your model. so you started off helping other people find and build their dream country home by the Great Wall, and then added the F&B and craft components to the village, and now i see you are starting inns?
JS: we have 6 rental houses www.chinacountrysidehotels.com and 3 or 4 more about to come on line. inns -- we have 2 under construction

LCL: what is the cost of buying, say 50-year lease
JS: location key. in mty and nearby yingbeigou a peasant house as is for 30 years now runs about rmb 450-900k

if you go a few km away can get an existing ouse for rmb 150-200k and even less as you go more distant in the hills

LCL: wow! you've added lots of value!
JS: yes -- the peasants now sit on a previously worthless asset. they take the money to start businesses, educate their kids, provide better old age living, etc

JH: are you looking to expand the model onto other parts of china? or continue expanding this region?
JS: i am very intrerested in first expanding in other nearby villages. but i do think that in areas 1-3 hours from major cities in china and perhaps eleswhere this is replicable

remote is harder -- have you seen naked retreats 3 hours from shangai?
LCL: no! wow, i'm soo glad i'm having this conversation...keep finding out more!
JS: naked retreats took missionary houses from pre-liberation and made them into nice weekend places. issue is (to me) maybe not focused on helping community today.

LCL: just one last question...your businesses are set up as businesses, correct?
JS: yes -- for profit businesses. to me that is part of being sustainable. we have been approached by 1 person who is starting a social investment fund to loan funds or take equity in for-profit businesses that have a commitment to sustainable social development

LCL: thank you so much for your time...i'm going to chew on our conversation a little bit
JH: thanks so much for letting me in on your conversation! and you have a very inspiring life! we drool at what you have achieved!
JS: i enjoyed meeting you via this chat, have a great day!
LCL: have a great weekend in the country! ahhh...that clean, crisp air
JS: i will!

Pleasant Surprises

I love surprises, especially when they come in boxes. Out of the blue, a box arrived from Pantheon (an imprint of Random House). Had the new titles I sent to SW, an editor I had met last year about Little Cream Book, bounced back? I opened the box, and inside sat copies of Joan Didion's non-fiction collection, We Tell Ourselves Stories in Order to Live, and Feather in the Storm by Emily Wu and Larry Engelmann about Wu's childhood during the Cultural Revolution. Apparently, SW did received the new titles I sent her and had reciprocated. I can't wait to start reading them, especially the Joan Didion collection. Didion's writings were much talked about during my Bryn Mawr days, but to be honest, I didn't actually get around to reading much of them (I had actually read more Susan Sontag). Because I'm an avid reader of Vanity Fair and Dominick Dunne's (Didion's brother-in-law) column, I probably know more about her personal life than about her actual writing.

Speaking of other pleasant surprises, I came across a wonderful write-up on Little Cream Book in the current issue of Four Seasons magazine (as in the luxury hotels and resorts). It was actually written by ST, or better known as Chubby Hubby's S. It was actually an article on creative, lifestyle products coming out of China's metropolitan cities (i.e. Hong Kong, Shanghai and Beijing), which also featured Fort Street Studio, Spin Ceramics, Suzhou Cobblers, Chang & Biorck and Mushi Fashion.

A more local surprise was a visit to a fairly new boutique hotel/serviced apartment right around the corner from my office on 133 Leighton Road. I had heard of Lanson Place mentioned by another friend earlier, but was not intrigued enough to go seek it out. Since EO had just checked-in, I decided to pay him a visit before we went to lunch. Turns out, it's very good value for money. He got upgraded to a Grand Luxe room (around 500 sq. ft.), which has a kitchenette (with microwave and burners), separate sitting area and bedroom with airy views overlooking the stadium. Bathroom is OK in size. Typical of a "boutique hotel", there is no bathtub and offers only one wash basin. At HK$1,400++ (rack rate is HK$3,200++) though, it's a pretty good deal in Causeway Bay. It does run up against competition though; as it's right behind JIA. The more intimate ambiance beats Regal Hotel next door or Excelsior on the harbour front. In Central, there's Hotel LKF, which is very convenient for those who enjoy the Lan Kwai Fong/SoHo nightlife when they're in the city.

And last, but not least, there's the season 3 opener of
Desperate Housewives, which is just out on iTunes. Just 10 more days till LOST!