In a significant move set to reshape China’s fast-evolving hospitality market, Ascott, a wholly-owned lodging business unit of Singaporean real estate firm CapitaLand Investment (CLI), has entered a strategic 50:50 joint venture with Chinese hospitality group Jin Jiang Hotels (China Region) to drive the rapid expansion of their respective apartment hotel brands, Quest and Tulip Lodj, across China. 

According to a press statement by Ascott, the partnership, using an asset-light franchise model, aims to meet the increasing demand for upscale and upper midscale apartment hotels, providing enhanced lodging experiences for a broad spectrum of travellers.

The statement adds that Quest is a leading apartment hotel brand in Australasia, known for its spacious accommodations tailored to business travellers and families alike, while Tulip Lodj is Jin Jiang Hotels’ emerging brand that blends the best qualities of hotels and serviced apartments with a focus on social living and leisure-centric environments. 

The statement adds that both brands are designed to meet the growing demand for flexible

The statement adds that both brands are designed to meet the growing demand for flexible, apartment-style accommodations, especially from business travellers looking for a blend of work and leisure, often referred to as ‘bleisure’ travel.

From the outset, the joint venture will manage three properties, including two Tulip Lodj hotels in Wuhan and a newly planned one in Shenzhen, offering a total of 600 units. 

Ascott says that the partnership is positioned to rapidly scale its operations by leveraging Jin Jiang’s established franchise infrastructure, which includes robust supply chains and local operational expertise, while Ascott contributes its international know-how in managing serviced residences. 

These factors combined will facilitate the swift rollout of Quest properties across China, allowing the brand to make its debut in one of the world’s most lucrative markets for hotel franchising.

Kevin Goh

“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,” says Kevin Goh, Chief Executive Officer for Ascott and CLI Lodging.

“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 pc 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 adds.

“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 pc of new hotel signings in China in the first half of 2024 are franchise contracts, up from 61 pc a year ago and surpassing the average of 62 pc 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,” he added.

Lee Ngor Houai

“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,” says Lee Ngor Houai, Chief Operating Officer, Europe, Middle East, Africa (EMEA), South Asia and China, Ascott.

“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,” Houai adds.

“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,” says Wang Wei, Chief Executive Officer, Jin Jiang Hotels (China Region).

“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,” she adds.

The statement adds that the partnership is also poised to benefit from the booming hotel franchise industry in China. A recent industry report noted that 68 pc of all new hotel signings in China in the first half of 2024 were franchise agreements, up from 61 pc the previous year, signalling a shift toward asset-light models as the dominant mode of growth in the hospitality sector. 

It adds that these franchise contracts have proven highly effective, especially as China’s hospitality market matures and investors seek stable, long-term returns through established hotel brands like Quest and Tulip Lodj.

By integrating their strengths, the two companies are well-positioned to capitalise on these trends. Jin Jiang Hotels, which is China’s largest and the world’s second-largest hotel group, operates 13,250 hotels with 1.34 million rooms globally. 

Another notable aspect of the joint venture is the interconnectivity between the loyalty programmes of both companies

Their extensive presence in China, combined with their franchise-ready infrastructure, offers a powerful platform for launching and expanding Quest and Tulip Lodj brands across the country.

Another notable aspect of the joint venture is the interconnectivity between the loyalty programmes of both companies. Members of Ascott Star Rewards and Jin Jiang Rewards will be able to earn and redeem points across both brands, giving travellers more flexibility and increasing the brands’ appeal to frequent customers, the press statement says. 

It adds that this collaboration creates a seamless loyalty experience, combining the best of Ascott’s international reputation with Jin Jiang’s extensive reach in the Chinese market.

The joint venture was officially unveiled during the Ascott Unlimited Global Marquee Event held at ITB Asia 2024, a major travel industry event in Singapore. This announcement comes as Ascott concludes its year-long campaign celebrating 40 years of hospitality excellence. The event was attended by Alvin Tan, Minister of State of Singapore, along with 300 industry professionals.

During the event, Kevin Goh delivered a keynote speech outlining Ascott’s vision for the future of travel

During the event, Kevin Goh delivered a keynote speech outlining Ascott’s vision for the future of travel and the essential role technological innovation will play in shaping ‘the guest of tomorrow.’

The event also included a panel discussion featuring four travel industry leaders, who explored the unique opportunities Asia holds in revolutionising the global hospitality industry.

Ascott says its asset-light strategy, which prioritises management and franchise agreements over property ownership, is a key driver of the company’s global expansion. 

With more than 90 pc of its properties already operating under this model, the company is well-positioned to continue its rapid growth, not only in China but across other key international markets.

By forming this joint venture with Jin Jiang Hotels, Ascott says it is taking a significant step towards cementing its leadership in the apartment hotel space in China, addressing the country’s increasing demand for diverse accommodation options that combine both comfort and functionality.