The Ascott Limited (Ascott) announces that Ascott China has entered a 50:50 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 primarily a franchise model, 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, totaling about 600 units. Plans are underway to broaden the footprint of TULIP LODJ and launch Quest in China by providing opportunities for franchised partnerships.
Jin Jiang is China’s largest hotel group and the world’s second largest, with approximately 13,250 operating hotels, over 1.34 million rooms, and nearly 200 million loyalty members. The joint venture between Ascott China and Jin Jiang Hotels (China Region) aims to capitalize on the potential of China’s hotel franchise industry. Leveraging Jin Jiang Hotels’ strong local teams and supply chains, the partnership will swiftly introduce the Quest brand and support its future growth. Properties under this collaboration will have access to the distribution networks and loyalty programs of both Ascott and Jin Jiang Hotels. Guests who are members of Ascott Star Rewards and Jin Jiang Rewards will have the flexibility to earn and redeem points with either program when booking stays at Quest and TULIP LODJ in China.
The strategic partnership was unveiled at the Ascott Unlimited Global Marquee Event during ITB Asia 2024, marking the culmination of Ascott’s year-long campaign celebrating 40 years of hospitality excellence. The event was attended by approximately 300 guests, with Mr. Alvin Tan, Singapore’s Minister of State for the Ministry of Trade and Industry and Ministry of Culture, Community and Youth, in attendance as the Guest-of-Honour.
Kevin Goh, Chief Executive Officer for Ascott and CLI Lodging, stated: “2024 has been a groundbreaking year as we mark Ascott’s 40th anniversary. From record signings in key markets like Europe and Southeast Asia to being named the Official Global Hotels Partner of Chelsea Football Club, every milestone underscores Ascott’s innovative spirit and commitment to growth through our distinctive flex-hybrid hotel-in-residence model. As we conclude our year-long Ascott Unlimited campaign with the Global Marquee Event, we are delighted to announce a new partnership with Jin Jiang Hotels. The collaboration will accelerate our asset-light expansion in China by leveraging Jin Jiang’s franchise-ready infrastructure, complementing our successful management strategy in the market where we currently operate more than 220 properties in over 40 cities. 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.”
“Quest is the leading apartment hotel brand in Australasia, and we see tremendous potential in extending its success to China as the country’s hotel franchising industry continues to mature. Recent research indicates that 68% of new hotel signings in China in the first half of 2024 are franchise contracts – up from 61% a year ago and surpassing the average of 62% in regions outside the Americas. Our plans to establish Quest’s brand presence in China align with our overall growth strategy and reinforce our commitment to maximizing the value of Ascott’s acquisition of this esteemed brand,” he added.
Lee Ngor Houai, Ascott’s Chief Operating Officer for Europe, Middle East, Africa (EMEA), South Asia, and China, stated that bleisure travel is flourishing in China, with professionals seeking a balance between work and leisure. This has led to a growing demand for apartment hotels. Quest, known for its spacious and convenient accommodations catering to both business travelers and families, is well-positioned to meet this demand. With over 160 properties in Australasia, including Australia, New Zealand, Fiji, and the United Kingdom, Quest aims to expand its brand influence to China.
Meanwhile, Wang Wei, Chief Executive Officer, Jin Jiang Hotels (China Region), said: “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. 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.”
