Economy and Business

ibis launches new operating model in China

By Ma Zhenhuan (China Daily Shanghai Bureau)
Updated: 2010-05-12 15:03

SHANGHAI: ibis, the international economy hotel brand of the Accor group of France, announced on May 11 its plan to deploy a franchise development model in China, aiming to further grow its network into new locations throughout China.

This plan marks the start of an unprecedented expansion rate for the brand in the Chinese market, with four initial franchise agreements have been signed, and up to 15 agreements anticipated to be closed during this year.

The first two franchise hotels will open in May, both in city centre locations of Shanghai, the company said.

"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 will allow hotel owners to seek a quality three-star international hotel brand, benefitting from a strong distribution platform."

"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.

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.

Since entering China in 2004, ibis has opened 38 hotels comprising of 7,224 rooms across 27 cities. This year will see ibis adding hotels in cities such as Beijing, Shanghai, Guangzhou, Suzhou, and Qingdao.