Melbourne-based Choice Hotels Australasia has announced major Greater China expansion plans for the hotel group with 30 new build hotels planned for development over the next five years.
Choice Hotels has signed a development agreement with Hangzhou-based Boli Hotel Management Co., Limited, an independent authorised licensee of Choice Hotels which will be responsible for the development and operations of the anticipated 30 hotels in China, likely to be a mix of upscale Clarion and Quality brand hotels.
“Over the past 18 months we’ve seen an increase of Chinese investors investing in the Australian market,” said Trent Fraser, Choice Hotels Australasia’s Chief Executive.
“We expect this interest to grow in the coming years as we build a stronger base in the Chinese hotel industry.”
Construction of the first new Clarion build is underway in Hangzhou, one of China’s most popular tourist destinations, with plans to move ahead and deliver the remaining 29 properties in additional cities across the region by 2021.
“This partnership will allow a well-known local Chinese operator to focus on the day-to-day challenges of running a hotel while capitalising on the many benefits afforded by Choice Hotels’ recognizable brand and robust distribution platform,” said Mark Pearce, senior vice president of Choice Hotels International Division.
“Local Chinese hotel developers and operators now have an opportunity to partner with an international hotel company and leverage our brands’ excellent reputation.”
The partnership comes at a time of major expansion for Choice Hotels Australasia within the local market; Choice Hotels has reported its strongest year on record for new property growth in the Australasia market.