The Ascott Limited (Ascott), CapitaLand Investment’s (CLI) wholly owned lodging business unit, has entered into a 50:50 joint venture with Jin Jiang Hotels (China Region). The partnership aims to drive the asset-light expansion of Ascott’s Quest and Jin Jiang Hotels’ TULIP LODJ apartment hotel brands in China, leveraging a franchise model to meet the growing demand for upscale and upper midscale apartment hotels.
The joint venture will start by managing two operational properties in Wuhan and one in the pipeline in Shenzhen under the TULIP LODJ brand, encompassing about 600 units. Future plans include expanding the TULIP LODJ brand and launching the Quest brand in China through franchise partnerships, capitalising on the demand for high-quality apartment hotels.
Jin Jiang Hotels, China’s largest and the world’s second-largest hotel group, operates approximately 13,250 hotels worldwide, with over 1.34 million rooms and nearly 200 million loyalty members. This collaboration combines Jin Jiang’s franchise infrastructure, including strong local teams and supply chains, with Ascott’s decades of expertise in international-class serviced residences, enabling the rapid growth of Quest and TULIP LODJ across China.
Both brands will be integrated into the distribution networks and loyalty programmes of Ascott and Jin Jiang Hotels, allowing members of Ascott Star Rewards and Jin Jiang Rewards to earn and redeem points when staying at Quest and TULIP LODJ properties in China.
The announcement was made at the Ascott Unlimited Global Marquee Event during ITB Asia 2024, marking the culmination of Ascott’s 40th-anniversary celebrations. The event featured over 300 guests, including Singapore’s Minister of State for Trade and Industry and Minister of Culture, Community and Youth, Mr Alvin Tan, as Guest-of-Honour.
Kevin Goh, Chief Executive Officer for Ascott and CLI Lodging, said:
“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.”
He also highlighted the tremendous potential for Quest in China:
“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 maximising the value of Ascott’s acquisition of this esteemed brand.”
Lee Ngor Houai, Chief Operating Officer for Europe, the Middle East, Africa, South Asia, and China, 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 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.”
Ms 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. 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 partnership reflects the strong commitment of both companies to capitalise on the growing demand for franchised apartment hotels in China and create new opportunities for property owners across the country.
