The Ascott Limited (Ascott), a lodging business unit wholly-owned by CapitaLand Investment (CLI), has announced that Ascott China has entered a 50:50 joint venture (JV) with Jin Jiang Hotels to advance the asset-light expansion of their respective apartment hotel brands in China, Ascott’s Quest and Jin Jiang Hotels’ TULIP LODJ.
Jin Jiang is China’s largest and the world’s second largest hotel group with about 13,250 operating hotels, over 1.34 million rooms and nearly 200 million loyalty members.
The JV will leverage Jin Jiang Hotels’ franchise-ready infrastructure and robust supply chains across the country to rapidly launch the Quest brand and meet China’s underserved demand for apartment hotels in the upscale and upper midscale segments.
It 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.
In parallel, 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 JV 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 enjoy the flexibility to earn and redeem points with either programme when booking stays at Quest and TULIP LODJ in China.
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The strategic partnership was unveiled at the Ascott Unlimited Global Marquee Event during ITB Asia 2024, attended by around 300 guests with Alvin Tan, Singapore’s minister of state, Ministry of Trade
and Industry (MTI) and Ministry of Culture, Community and Youth, in attendance as the guest-of-honour.
Kevin Goh, chief executive officer for Ascott and CLI Lodging, says: “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.”
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“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. 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,” he adds.
Lee Ngor Houai, chief operating officer, Europe, Middle East, Africa (EMEA), South Asia and China, Ascott, says: “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.”
“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,” conclude Wang Wei, chief executive officer, Jin Jiang Hotels, China region.
As at 3.05 pm, shares in CLI are trading 3 cents lower or 1.01% down at $2.93.
