Apartment hotels brand Quest is set for a major expansion in China under a 50:50 joint venture partnership between Ascott China and Jin Jiang Hotels signed this week.
The joint venture will enable rapid growth of Ascott’s Quest and Jin Jiang Hotels’ TULIP LODJ, primarily through a franchise model, to meet China’s underserved demand for apartment hotels in the upscale and upper midscale segments
Jin Jiang is China’s largest and the world’s second largest hotel group with approximately 13,250 operating hotels, over 1.34 million rooms and nearly 200 million loyalty members.
“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,” said Ascott and CLI Lodging Chief Executive Officer, Kevin Goh.
“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.”
To start, the joint venture will manage two operating properties in Wuhan and one pipeline property in Shenzhen franchised under TULIP LODJ, totalling about 600 units, with plans underway to broaden the footprint of TULIP LODJ and launch Quest in China by providing opportunities for franchised partnerships.
“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,” Goh said.
“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 maximising the value of Ascott’s acquisition of this esteemed brand.”
The partners see vast potential for hotel franchise in China and intend to leverage Jin Jiang Hotels’ franchise-ready infrastructure including strong local teams and robust supply chains across the country to rapidly grow the Quest brand.
Ascott’s international expertise in the operation of serviced residences will drive the development of 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, with guests who are members of both Ascott Star Rewards and Jin Jiang Rewards able to earn and redeem points with either programme when staying at either of the group’s properties in China.
“Bleisure travel is thriving in China as professionals seek the ideal blend of work and leisure, creating a vibrant demand for apartment hotels,” said Ascott Chief Operating Officer, Europe, Middle East, Africa (EMEA), South Asia and China, Lee Ngor Houai,
“Quest is poised to meet this need with its signature spacious and convenient accommodations designed for business travellers and families alike. 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 the brand influence of Quest to China.
“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.”
Community and Youth (right), and Kevin Goh, CEO for Ascott and CLI Lodging, interacting with Ascott’s young
family vacation ambassadors at the Ascott booth at ITB Asia 2024
Jin Jiang Hotels (China Region), Chief Executive Officer, Wang Wei, said the joint venture partners aim 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,” Wei said.
“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.
“Harnessing our respective strengths through this partnership, we 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.”
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, and was attended by about 300 guests including Alvin Tan, Singapore’s Minister of State, Ministry of Trade and Industry and Ministry of Culture, Community and Youth, in attendance as the Guest of Honour.