Choice Hotels International has secured a long-term distribution and master franchise agreement with a key player in China’s hospitality scene, SSAW Hotels and Resorts, which sets the foundation for a major expansion in China.
Headquartered in Hangzhou, Zhejiang Province, SSAW Hotels and Resorts is recognised as a leader in the upscale business hotel and resort segment in China, and a pioneer in sophisticated boutique hotel and lifestyle hotel sector.
The deal will see 68 upscale existing properties (more than 9,500 rooms) currently managed by SSAW, under its Pagoda, Narada Grand, SSAW Boutique, and Ginlan Jia brands, join Choice Hotels’ upscale soft brand, Ascend Collection, under a distribution agreement.
The newly affiliated properties are expected to be bookable on ChoiceHotels.com within three months.
The agreement also gives SSAW exclusive development rights for the Comfort and Quality brands across China as a master franchisee. SSAW intends to develop 100 new hotels in China under these two brands within five years.
Speaking exclusively to HM, Choice Hotels Asia-Pac CEO Trent Fraser, described the deal as “a highly significant milestone” that will allow Choice to scale quickly in Asia-Pacific’s fastest-growing market.
“This deal complements our existing franchisees and portfolio in China and helps build a significant step-off point for enhancing our scale and presence across Asia more broadly as we look to develop more strategic efforts in the region,” Fraser said.
“From a customer loyalty perspective, it offers a broader awareness and greater opportunities for our Choice Privileges Loyalty Program.”
Fraser told HM the deal presents great opportunities in driving domestic and international business in China and supports its Australian hotels in appealing to the Chinese traveller.
“The existing 68 upscale hotels which will join the Ascend Hotel brand under a distribution agreement are largely domestic hotels,” he explained.
“The agreement gives us the ability to drive international business into these hotels via visibility through Choice’s channels, including the Choice website, choicehotels.com.au and via Choice Privileges loyalty program where our 70 million members will be able to earn and redeem points at each of their hotels.
“At the same time, the planned build of Comfort and Quality Hotels under the MFA Agreement allows us to drive domestic Chinese business and grows on our existing midscale portfolio while accelerating this immensely and enabling us to scale quickly.
“We know that China is Australia’s second top source feeder market with 829,000 trips YE 2024 and $8.1 billion in spend, so increasing brand visibility and familiarity in market will drive consumer behaviour in Australia and likewise in all 46 countries and territories in which Choice Hotels operates.”
SSAW Hotels and Resorts Group CEO, Lily Zhu, said the business is “honoured” to work with Choice Hotels.
“This cooperation is a strategic measure of mutual benefit for both parties,” said Zhu.
“Choice Hotels is one of the world’s leading hotel franchising groups and has extensive influence across the global industry.
“This deal allows us to introduce the Ascend Collection in China, and grants SSAW Group exclusive rights to develop and expand the presence of Comfort and Quality brands in Mainland China.”
Zhu also highlighted the importance of the Chinese hotel market and the potential business opportunities it offers.
“The cooperation between our two companies can complement each other’s advantages in resource cooperation and is also an opportunity to enhance the internationalisation of SSAW Group.
“I believe that this cooperation can achieve positive results in many aspects such as market expansion, brand building and resource integration.”
Choice Hotels Senior Vice President and General Manager, International Division, Ricardo Losada Revol, said the deal represents the beginning of a strong growth trajectory for the business in China.
“With our expanding platform, marketing channels, and proprietary tools and systems that drive franchisee success, combined with SSAW’s local leadership, Choice Hotels is poised for scalable long-term growth across China and beyond,” he said.
Choice Hotels’ Ascend Collection has expanded rapidly over the last 12-18 months, now standing at more than 180,000 upscale and upper-upscale rooms worldwide.
Fraser pointed to increased interest among owners in the upscale segment.
“In 2024, Choice Hotels increased its global upscale rooms portfolio by 43.9%,” Fraser told HM.
“Following the acquisition of Radisson in the Americas and our global growth of Ascend, Choice Hotels is now recognised as a player in the upscale space.
“Across Asia- Pac, we see significant investors and franchisee interest in our upscale opportunities.”