Interstate Hotels & Resorts increases China portfolio25 July 2012
US company Interstate Hotels & Resorts has announced a deal which takes to 10 the number of its managed or signed hotels in China.
The company's Chinese joint venture - Interstate Hotels - has signed an agreement to manage the 396 room Jiaxing Jin Jiang Xiang Jiadang Lake Hotel, which should open next year in Zhejiang Province, around one hour from Shanghai in a resort setting along Xiang Jiadang Lake.
The company's joint venture partner is Shanghai Jin Jiang International Hotels, one of China's leading hotel operators and developers.
The agreement will see the third Jin Jiang branded hotel managed by Interstate China.
"Since launching Interstate China in 2010 with our joint venture partner, Jin Jiang Hotels, we have built a solid pipeline of management agreements," said Jim Abrahamson, Interstate's chief executive officer.
Interstate Hotels also operates five star hotels in Beijin, Wuhan and Shanhgai, and has been selected to manage the J Hotel at Shanghai tower, which is expected to be China's tallest hotel when it opens in 2015.
Shanghai Jin Jiang International Hotels, meanwhile, says it opened nine new properties in June. Two of these were direct operated and the remainder were franchised, taking the number of its hotels to 606.
The company said its average occupancy rate dipped 1.17 percent year on year to 86.61 percent, with the average roo price advancing 2.5 percent to 180.72 RMB per night.
The company also said it would spend 100 million RMB on integrating its platforms for one-stop services such as hotel bookings and car rentals.