ibis launches new operating model for expansion in China
- China continues to be an expansion driver for ibis in Asia and around the world
- The franchise development model is launched in China amid efficient expansion
- Four franchise development agreements already signed, anticipate up to 15 further contracts for 2010
- The first four franchised hotels to open in China before year end
ibis, the international economy hotel brand of the Accor group, announced its plan to deploy a franchise development model to support the growth of the ibis brand in China. This new franchising model together with the existing ownership and leased model will grow the ibis network into new locations throughout China.
This plan marks the start of an unprecedented expansion rate for the brand in the Chinese market. 4 initial franchise agreements have been signed, with up to 15 agreements anticipated to be closed during 2010. The first two of these franchise hotels will open in May 2010, both in city centre locations of Shanghai.
"China is one of the major growth markets internationally for the ibis brand,” said Gilles Larrivé, Senior Vice President of ibis Asia. "The launch of this franchise operating model is an important step in the brands growth strategy. It will allow hotel owners seeking a quality three star international hotel brand to benefit from a strong distribution platform, in market infrastructure and a recognized loyalty program through franchising with the ibis hotel brand. With this operating model, 4 franchise ibis hotels will open by the end of this year, with further plans to accelerate the development significantly thereafter.”
“The ibis franchise model is an innovative hybrid product developed specifically for expansion in China, providing flexibility for network expansion and a platform to maintain the international quality standards that the ibis brand worldwide stands for.” added Gilles Larrivé.
Within the scope of franchise agreement, the hotel owner holds the property while ibis provides through a 10-year agreement, a broad array of hotel management skills and services. These include assistance during the conception and construction stages, sharp quality control through the ISO 9001 Certification, effective cost management, people development, and its marketing, sales and distribution expertise.
The stimulus expansion of the tourism industry and sustainable economic growth has and will continue to act as a major demand driver for affordable hotels in China. By 2015, China is expected to become the world's largest tourist destination as well as the first international outbound market globally; ibis is set to build itself as a brand of choice.
Since entering China in 2004, ibis has opened 38 hotels comprising of 7,224 rooms across 27 cities. This year, will see ibis add hotels in cities such as Beijing, Shanghai, Guangzhou, Suzhou, and Qingdao.
Franchised ibis hotels are consistent with ibis brand standards offering double and twin bedrooms, air-conditioning, well-controlled air quality and good sound insulation. Additionally all hotels are to be certified ISO9001, assuring high quality and efficient service standards. The “8-hour non stop” breakfast concept implemented in all ibis hotels globally is adapted to the pace of guests – available anytime from 4am to 12pm.
“The ibis hotel brand continues to form a significant part of Accor’s’ expansion in Asia Pacific and around the world” says Michael Issenberg, Chairman and Chief Operating Office for Accor Asia Pacific. “The launch of franchise model will take the expansion of the network throughout the region to a new and accelerated pace.” We are very excited for the prospects for this ibis franchise model in China and it is a notable milestone in our continued expansion in this strategically important market.’
World wide, ibis is a large chain of hotels. In 1974, the first hotel was opened under the ibis name and today, the brand opens around one hotel every week. The current global network consists of 861 hotels in 45 countries. The brand is present in almost every capital city throughout Asia Pacific and is renowned for its value and quality proposition. Recently the brand celebrated the opening of its 100,000th hotel room.
