The Ascott Limited announced that Ascott China has entered a 50:50 joint venture with Jin Jiang Hotels (China Region.)
This 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 about 300 guests with Alvin Tan, Singapore’s Minister of State, as guest of honour, as well as representatives from the country’s Ministry of Trade and Industry and Ministry of Culture, Community and Youth.
What does this agreement entail?
This joint venture seeks to advance the asset-light expansion of their respective apartment hotel brands in China, namely Ascott’s Quest and Jin Jiang Hotels’ TULIP LODJ.
Primarily using 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, 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.
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.
At the same time, the collaboration will build on Ascott’s years of in-depth experience operating international-class serviced residences to 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.
