Signing ceremony of Ascott’s joint venture with Huazhu and CJIA at Ascott Hengshan Shanghai. The manachise joint venture targets to sign 16,000 units under Citadines in China by 2025. (From left to right) Mr Lee Chee Koon, CapitaLand’s Group Chief Investment Officer, Mr Kevin Goh, Ascott’s CEO; and Mr Ji Qi, Huazhu’s Founder and Executive Chairman, looking on while (seated from left to right) Mr Zhao Ru Quan, Huazhu’s Chief Financial Officer; Mr Tan Tze Shang, Ascott’s Managing Director for China and Head of Business Development; and Mr Jin Hui, President of Huazhu Hotels Group and Chairman & CEO of CJIA Apartments Group, signed the documents to seal the powerful partnership. — Photo by The Ascott Limited
(From left to right) Mr Zhao Ru Quan, Huazhu’s Chief Financial Officer; Mr Tan Tze Shang, Ascott’s Managing Director for China and Head of Business Development; Mr Kevin Goh, Ascott’s Chief Executive Officer; Mr Lee Chee Koon, CapitaLand’s Group Chief Investment Officer; Mr Ji Qi, Huazhu’s Founder and Executive Chairman and Mr Jin Hui, President of Huazhu Hotels Group and Chairman & CEO of CJIA Apartments Group, hand-in-hand at the signing ceremony of the joint venture between Ascott, Huazhu and CJIA. — Photo by The Ascott Limited

CapitaLand's wholly owned serviced residence business unit, The Ascott Limited (Ascott), is stepping up the expansion of its Citadines brand in China through a joint venture with one of China's leading hotel operators Huazhu Hotels Group (Huazhu) and Huazhu's subsidiary and an apartment rental firm, CJIA Apartments Group (CJIA). Listed on Nasdaq Stock Market since 2010, Huazhu has a market capitalisation of US$10.4 billion and the third largest market share in China's midscale hotel segment with a total portfolio of over 380,000 hotel rooms. CJIA, within a short span of over two years, has expanded quickly to collaborate with over 100 property management firms with 10,000 apartments. With an initial registered capital of RMB 100 million (S$21 million), Ascott, Huazhu and CJIA will hold 50%, 10% and 40% respective stakes in the partnership. The joint venture will focus on growing Citadines in the first-tier Chinese cities of Shanghai, Beijing and Shenzhen for the initial years. It has secured its first property in the Pudong district of Shanghai, which will come under the Citadines brand and enjoys easy access to the city's financial district.

Mr Kevin Goh, Ascott's Chief Executive Officer, said: "Our partnership with Huazhu and CJIA marks Ascott's most significant and game-changing move in the asset-light manachise business to date. Huazhu is one of China's biggest hospitality players with significant local capabilities. CJIA has scaled up rapidly in the apartment rental space with more than 90% of its revenue from long-term rentals, which complements Ascott's strong position in the long-stay business. Ascott will be able to tap on Huazhu and CJIA's vast expertise in operating properties through manachise, and their over 100 million-member database of domestic corporate and leisure travellers."

"The joint venture will fast-track Ascott's growth in China and accelerate the boost in recurring fee income given the shorter timeframe to open a new property. The manachise business model focuses on design and product standardisation, as well as economies of scale, resulting in time and cost savings for the manachisees. Manachise will also allow our joint venture to actively manage the properties and maintain the quality of our world-renowned Citadines brand while enjoying franchise fees. Coupled with Ascott's international marketing network and experience in managing award-winning properties worldwide, our formidable partnership with Huazhu and CJIA will give us a leading edge in the market."

Please find the attached news release and photos for your editorial consideration.