Residence lodges model Quest is ready for a serious growth in China below a 50:50 three way partnership partnership between Ascott China and Jin Jiang Resorts signed this week.
The three way partnership will allow speedy progress of Ascott’s Quest and Jin Jiang Resorts’ TULIP LODJ, primarily via a franchise mannequin, to fulfill China’s underserved demand for residence lodges within the upscale and higher midscale segments
Jin Jiang is China’s largest and the world’s second largest lodge group with roughly 13,250 working lodges, over 1.34 million rooms and practically 200 million loyalty members.
“The collaboration will speed up our asset-light growth in China by leveraging Jin Jiang’s franchise-ready infrastructure, complementing our profitable administration technique out there the place we presently function greater than 220 properties in over 40 cities,” mentioned Ascott and CLI Lodging Chief Govt Officer, Kevin Goh.
“With 90% of Ascott’s international portfolio already working below administration and franchise agreements, we stay targeted on advancing our asset-light technique for additional progress.”
To begin, the three way partnership will handle two working properties in Wuhan and one pipeline property in Shenzhen franchised below TULIP LODJ, totalling about 600 models, with plans underway to broaden the footprint of TULIP LODJ and launch Quest in China by offering alternatives for franchised partnerships.
“Quest is the main residence lodge model in Australasia, and we see great potential in extending its success to China because the nation’s lodge franchising business continues to mature,” Goh mentioned.
“Latest analysis signifies that 68% of recent lodge signings in China within the first half of 2024 are franchise contracts – up from 61% a yr in the past and surpassing the typical of 62% in areas outdoors the Americas.
“Our plans to determine Quest’s model presence in China align with our general progress technique and reinforce our dedication to maximising the worth of Ascott’s acquisition of this esteemed model.”
The companions see huge potential for lodge franchise in China and intend to leverage Jin Jiang Resorts’ franchise-ready infrastructure together with sturdy native groups and sturdy provide chains throughout the nation to quickly develop the Quest model.
Ascott’s worldwide experience within the operation of serviced residences will drive the event of TULIP LODJ right into a high-quality residence lodge model.
Properties below the three way partnership will be a part of the distribution networks and loyalty programmes of each Ascott and Jin Jiang Resorts, with visitors who’re members of each Ascott Star Rewards and Jin Jiang Rewards capable of earn and redeem factors with both programme when staying at both of the group’s properties in China.
“Bleisure journey is prospering in China as professionals search the perfect mix of labor and leisure, making a vibrant demand for residence lodges,” mentioned Ascott Chief Working Officer, Europe, Center East, Africa (EMEA), South Asia and China, Lee Ngor Houai,
“Quest is poised to fulfill this want with its signature spacious and handy lodging designed for enterprise travellers and households alike. Lauded as Australasia’s largest residence lodge model with over 160 properties throughout Australia, New Zealand, Fiji and the UK, we see important promise in extending the model affect of Quest to China.
“Leveraging our complementary strengths with Jin Jiang Resorts, we’re assured that the three way partnership will function a superb platform for native house owners to entry one in every of Ascott’s iconic manufacturers and produce it to their respective areas. We are going to work carefully with Jin Jiang Resorts to develop supportive frameworks and efficient industrial methods to energy the success of Quest and TULIP LODJ house owners in China.”
Neighborhood and Youth (proper), and Kevin Goh, CEO for Ascott and CLI Lodging, interacting with Ascott’s younger
household trip ambassadors on the Ascott sales space at ITB Asia 2024
Jin Jiang Resorts (China Area), Chief Govt Officer, Wang Wei, mentioned the three way partnership companions goal to create extra flagship residence lodge properties in China that mix one of the best qualities of lodges and serviced flats,
“By bringing TULIP LODJ into the three way partnership, we goal to propel the event of this distinctive social dwelling idea that blends the wealthy cultures of China and France,” Wei mentioned.
“As franchising turns into an more and more necessary enterprise mannequin in China’s hospitality business, the three way partnership is well-positioned to leverage the established franchise capabilities of each Ascott and Jin Jiang Resorts to gas new progress.
“Harnessing our respective strengths via this partnership, we sit up for serving to each TULIP LODJ and Quest obtain important progress in property numbers and model affect in China, and offering visitors with numerous, high-quality keep experiences.”
The strategic partnership was unveiled on the Ascott Limitless World Marquee Occasion throughout ITB Asia 2024, marking the fruits of Ascott’s year-long marketing campaign celebrating 40 years of hospitality excellence, and was attended by about 300 visitors together with Alvin Tan, Singapore’s Minister of State, Ministry of Commerce and Trade and Ministry of Tradition, Neighborhood and Youth, in attendance because the Visitor of Honour.
