A budding partnership between Ascott China and Jin Jiang Hotels (China Region) was unveiled at the Ascott Unlimited Global Marquee Event at the ITB Asia 2024 event, celebrating Ascott’s 40 years of hospitality excellence. Lodging business The Ascott Limited and Jin Jiang Hotels announced the joint venture of their brands Quest and TULIP LODJ.
This collaboration promises to meet China’s growing demand for apartment hotels in upscale and upper-midscale areas. Under TULIP LODJ, the partnership company will manage two operating properties in Wuhan and one in Shenzhen, totaling 600 units.
Plans are also in place to widen TULIP LODJ’s horizons and start Quest in China by providing possibilities for franchised partnerships.
China’s largest and the world’s second-largest hotel group, Jin Jiang, currently has 13,250 operating hotels, over 1.34 million rooms, and almost 200 million loyalty members. This partnership benefits both parties by unlocking the immense opportunities in China’s hotel industry.
Jin Jiang can help launch their partner’s brand through its franchise-ready infrastructure, strong local teams, and sturdy supply chain across China. At the same time, Ascott Hotels can provide a strong foundation in terms of years of experience operating international-class serviced residences to hone TULIP LODJ into an upscale apartment hotel brand.
Loyalty members of both Ascott Star Rewards and Jin Jian Rewards will be able to earn and redeem points from either brand when they stay at Quest and TULIP LODJ.
The event marked the collection of efforts exerted by the Ascott brand and celebrated four decades of achievements in the hospitality industry. It was attended by around 300 guests, including notable guests such as Alvin Tan, Singapore’s Minister of State, Ministry of Trade and Industry, and Ministry of Culture, Community and Youth, who was the Guest of Honour.
“2024 has been a groundbreaking year as we mark Ascott’s 40th anniversary. Every milestone underscores Ascott’s innovative spirit and commitment to growth through our distinctive flex-hybrid hotel-in-residence model, from record signings in key markets like Europe and Southeast Asia to being named the Official Global Hotels Partner of Chelsea Football Club,” Kevin Goh, chief executive officer for Ascott and CLI Lodging, said.
Goh added, “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,”
According to Goh, Quest is the leading apartment hotel brand in Australasia, and it sees 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.
“Bleisure travel is thriving in China as professionals seek the ideal blend of work and leisure, creating a vibrant demand for apartment hotels. Quest is poised to meet this need with its signature spacious and convenient accommodations for business travelers and families. Lauded as Australasia’s largest apartment hotel brand with over 160 properties across Australia, New Zealand, Fiji, and the United Kingdom, we see significant promise in extending Quest’s brand influence to China,” Lee Ngor Houai, chief operating officer of Europe, Middle East, Africa (EMEA), South Asia and China, Ascott, said.
Ngor added that leveraging their complementary strengths with Jin Jiang Hotels, they are confident that the joint venture will be 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,” Ngor said.
Wang Wei, chief executive officer of Jin Jiang Hotels (China Region), commented, “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. 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.”
Wang explained that by harnessing the partnership’s respective strengths, they look forward to helping both TULIP LODJ and Quest achieve significant growth in property numbers and brand influence in China and providing guests with diverse, high-quality stay experiences.
During the afternoon of the event, Ascott featured a dialogue titled “Transforming Travel: Can Asia Lead the Charge in Revolutionizing the Hospitality Industry?” This dialogue unites four travel industry leaders to learn and explore the vast landscape of Asia’s different advantages in contributing optimistic developments through innovation, technology, and sustainability for the future travel ecosystem. Veteran presenter Diana Ser leads this dialogue; the panel comprises Kevin Goh; Loh Lik Peng, chief executive officer of Unlisted Collection; Zhou Wei, vice president of Jin Jiang International Group; and Frank Trampert, senior vice president and global managing director of Community Sales at Sabre Hospitality.