The Ascott Limited (Ascott) has announced a 50:50 joint venture with Jin Jiang Hotels (China Region) to accelerate the asset-light growth of their apartment hotel brands, Quest and TULIP LODJ, in China.
This partnership was unveiled at the Ascott Unlimited Global Marquee Event during ITB Asia 2024, coinciding with the celebration of Ascott’s 40th anniversary.
The joint venture aims to fulfil the rising demand for apartment hotels in China’s upscale and upper midscale segments, primarily using a franchise model.
Initially, the partnership will manage two operational properties in Wuhan and one in Shenzhen, amounting to approximately 600 units. There are plans to expand the TULIP LODJ brand and introduce Quest to the Chinese market through additional franchised partnerships.
Ascott China has entered a joint venture with Jin Jiang Hotels (China Region) to advance the asset-light expansion of their respective apartment hotel brands in China, namely Ascott’s Quest and Jin Jiang Hotels’ TULIP LODJ. Pictured here is an artist’s impression of a TULIP LODJ one-bedroom apartment. Photo Credit: Ascott
Jin Jiang Hotels, the largest hotel group in China and the second-largest globally, operates around 13,250 hotels and more than 1.34 million rooms, along with nearly 200 million loyalty members. The collaboration will leverage Jin Jiang’s franchise-ready infrastructure to facilitate the rapid launch of Quest and enhance the TULIP LODJ brand’s presence.
According to Kevin Goh, CEO of Ascott, “We are delighted to announce a new partnership with Jin Jiang Hotels. The collaboration will accelerate our asset-light expansion in China.”
Wang Wei, CEO of Jin Jiang Hotels, added, “We are pleased to collaborate with Ascott to create more flagship apartment hotel properties in China that combine the best qualities of hotels and serviced apartments.”
Ascott’s expansion strategy comes at a time when franchise contracts account for a significant portion of new hotel signings in China. Recent research indicates that 68% of new hotel signings in the first half of 2024 were franchise agreements, reflecting a growing trend in the country’s hotel franchising industry.
The partnership was announced amidst a strong presence at ITB Asia 2024, where Ascott showcased its leadership in the region. Goh delivered a keynote address titled “Navigating the Future of Travel – Embracing Technological Innovations”, focusing on the evolving landscape of travel and the need for personalised and sustainable approaches.
As both companies move forward with this joint venture, they aim to meet the rising demand for high-quality apartment hotels in China, leveraging their respective strengths to enhance the guest experience.