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.
Using a franchise model primarily, the joint venture will enable the rapid growth of Quest and Tulip Lodj to meet China’s underserved demand for apartment hotels in the upscale and upper midscale segments, while driving long-term investment success for owners.
From the outset, the joint venture company will manage two operating properties in Wuhan and one pipeline property in Shenzhen franchised under Tulip Lodj, totalling about 600 units. Plans are underway to broaden the footprint of Tulip Lodj and launch Quest in China by providing opportunities for franchised partnerships.
As China’s largest and the world’s second largest hotel group, Jin Jiang manages around 13,250 hotels with more than 1.34 million rooms and nearly 200 million loyalty members.
The joint venture represents a win-win collaboration between Ascott China and Jin Jiang Hotels (China Region) to tap the vast potential of the country’s hotel franchise industry. It will leverage Jin Jiang Hotels’ franchise-ready infrastructure comprising strong local teams and robust supply chains across the country to rapidly launch the Quest brand and provide strong support for its future expansion. In parallel, the collaboration will see Ascott develop Tulip Lodj into a high-quality apartment hotel brand.
Properties under the joint venture will join the distribution networks and loyalty programmes of both Ascott and Jin Jiang Hotels. Guests who are members of both Ascott Star Rewards and Jin Jiang Rewards will enjoy the flexibility to earn and redeem points with either programme when booking stays at Quest and Tulip Lodj in China.
Lee Ngor Houai, COO, Europe, Middle East, Africa (EMEA), South Asia and China, Ascott, commented: “Bleisure travel is thriving in China as professionals seek the ideal blend of work and leisure, creating a vibrant demand for apartment hotels. Leveraging our complementary strengths with Jin Jiang Hotels, we are confident that the joint venture will serve as an excellent platform for local owners to access one of Ascott’s iconic brands and bring it to their respective locations. We will work closely with Jin Jiang Hotels to develop supportive frameworks and effective commercial strategies to power the success of Quest and Tulip Lodj owners in China.”
“By bringing Tulip Lodj into the joint venture, we aim to propel the development of this unique social living concept that blends the rich cultures of China and France. As franchising becomes an increasingly important business model in China’s hospitality industry, the joint venture is well-positioned to leverage the established franchise capabilities of both Ascott and Jin Jiang Hotels to fuel new growth,” added Wang Wei, CEO, Jin Jiang Hotels (China Region).
