Ascott Limited (Ascott), a leading lodging business unit under CapitaLand Investment (CLI), has entered a strategic 50:50 joint venture with Jin Jiang Hotels to drive the expansion of their respective apartment hotel brands in China. Announced at the ITB Asia 2024 event, this partnership aims to tap into the growing demand for upscale and upper midscale apartment hotels in China, leveraging both companies’ strengths and established franchise infrastructure.
The joint venture, which marks a major step forward for Ascott’s asset-light expansion strategy, will primarily use a franchise model to accelerate the growth of Ascott’s Quest and Jin Jiang Hotels’ TULIP LODJ brands. With the initial management of two operating properties in Wuhan and a pipeline property in Shenzhen, the venture aims to oversee around 600 units and continue broadening its presence across China.
This partnership comes at a pivotal time as China’s hotel franchising industry continues to evolve, with a significant portion of new hotel signings in the country opting for franchise contracts. According to recent research, 68% of new hotel signings in China during the first half of 2024 were franchise agreements, up from 61% the previous year.
Meeting China’s Demand for Apartment Hotels
With China seeing a growing demand for apartment hotels, particularly in the upscale and upper midscale segments, this joint venture is strategically positioned to meet the needs of both local and international travelers. Jin Jiang Hotels, China’s largest hotel group and the second-largest worldwide, operates over 13,250 hotels and boasts a loyalty program with nearly 200 million members. The partnership with Ascott will allow both brands to take advantage of Jin Jiang’s extensive franchise-ready infrastructure, ensuring smooth operations and robust supply chains across China.
Ascott’s Quest brand, which is already a leading apartment hotel brand in Australasia, is set to make its debut in China through this collaboration. Known for providing spacious and convenient accommodations tailored to business travelers and families, Quest is expected to thrive in China’s growing bleisure travel market—a trend where professionals seek accommodations that blend work and leisure seamlessly.
Meanwhile, TULIP LODJ, Jin Jiang Hotels’ apartment hotel brand, will continue to expand with plans to enhance its footprint in key cities. TULIP LODJ brings a unique social living concept, blending French and Chinese cultures, and will benefit from Ascott’s expertise in operating international-class serviced residences.
Leveraging Loyalty Programs and Distribution Networks
A key advantage of this joint venture is the integration of the brands into the extensive distribution networks and loyalty programs of both Ascott and Jin Jiang Hotels. Members of Ascott Star Rewards and Jin Jiang Rewards will benefit from the flexibility to earn and redeem points across both brands when staying at Quest or TULIP LODJ properties in China. This cross-brand synergy will enhance guest loyalty and provide added value for frequent travelers.
A Strategic Announcement at ITB Asia 2024
The partnership was officially unveiled at the Ascott Unlimited Global Marquee Event, held during ITB Asia 2024. The event served as a grand finale to Ascott’s year-long campaign celebrating 40 years of hospitality excellence. Attended by over 300 industry professionals, including Singapore’s Minister of State for Trade and Industry, Mr Alvin Tan, the event underscored Ascott’s commitment to innovation and growth within the global hospitality landscape.
Kevin Goh, Chief Executive Officer of Ascott and CLI Lodging, highlighted the significance of this partnership during his keynote speech at ITB Asia 2024. “As we conclude our year-long Ascott Unlimited campaign, we are delighted to announce this new partnership with Jin Jiang Hotels. The collaboration will accelerate our asset-light expansion in China by leveraging Jin Jiang’s franchise-ready infrastructure. With 90% of Ascott’s global portfolio already operating under management and franchise agreements, we remain focused on advancing our asset-light strategy for further growth,” he said.
Goh also emphasized the tremendous potential of introducing Quest to the Chinese market, especially as China’s hotel franchise sector continues to mature. “Quest is the leading apartment hotel brand in Australasia, and we see great promise in extending its success to China.”
Looking Ahead: Expansion and Innovation
In addition to expanding their apartment hotel brands, Ascott and Jin Jiang Hotels are keen to focus on innovation and sustainability, two factors that are increasingly shaping the future of the travel and hospitality industry. During the ITB Asia 2024 event, Ascott hosted an exclusive panel discussion titled “Transforming Travel: Can Asia Lead the Charge in Revolutionising the Hospitality Industry?”. The dialogue explored how Asia, with its rich cultural heritage and rapid technological advancements, can play a pivotal role in transforming the global travel ecosystem.
In the coming years, Ascott and Jin Jiang Hotels plan to extend the Quest and TULIP LODJ brands across China through franchised partnerships, creating new opportunities for property owners and expanding their reach in one of the world’s largest hospitality markets. The joint venture will continue to build on the complementary strengths of both companies, positioning the brands for long-term success in China’s evolving hotel landscape.
This landmark partnership signifies a new chapter for Ascott as it celebrates 40 years of excellence in the hospitality industry. As China’s hotel franchising sector grows, the collaboration between Ascott and Jin Jiang Hotels is poised to redefine the apartment hotel experience for travelers across the country.
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