BEIJING - HK CTS Hotels Co., Ltd. entered into a strategic partnership agreement with InterContinental Hotels Group at Crowne Plaza Beijing Lido, pursuant to which they would jointly operate InterContinental's up-scale brand – Crowne Plaza Hotels & Resorts and mid-scale brand – Holiday Inn and Holiday Inn Resort on a franchising basis in the Greater China region. It has blazed a trail for a Chinese-funded hotels group to operate and manage the mid and up-scale brands of an international hotels group in Mainland China.
With the long-standing presence of the international hotels group in China, owners of domestic hotels are also expecting third-party management by partnering with international hotel brands, in order to lower operating cost and enhance operating profits. As a result, third party management companies independent from hotel and brand owners emerged. Due to concerns about the management capability of the domestic team, international hotel brand owners are unwilling to grant the right of operation to other companies, especially up-scale brands. In 2015, HK CTS Hotels Co., Ltd. successfully acquired UK-based Kew Green Hotels Limited, the second largest third-party hotel management company in UK operating 46 hotels under InterContinental Hotels Group such as Crowne Plaza Hotels & Resorts, Holiday Inn and Holiday Inn Express. In the past two years, HK CTS Hotels Co., Ltd. has fully introduced Kew Green Hotels Limited's third-party management experience as well as senior management to continuously strengthen the training of the domestic team. Driven by the rapidly improved and recognized operational and management capability of HK CTS Hotels Co., Ltd., InterContinental Hotels Group has authorized HK CTS Hotels Co., Ltd. to operate its up-scale and mid-scale brands.
Mr. Chen Rong, the General Manager Assistant of China National Travel Service Group Corporation and the Chairman of HK CTS Hotels Co., Ltd., make a speech for the ceremony
Mr. Chen Rong, the general manager assistant of China National Travel Service Group Corporation and the chairman of HK CTS Hotels Co., Ltd., said "From Beijing Lido Commercial Center founded in 1984 till the establishment of Crowne Plaza Beijing Lido in 2014, China National Travel Service Group Corporation and InterContinental have forged a solid foundation for time-honored cooperation. The strategic partnership with InterContinental based on third party franchising management in the hospitality sector is an extension of our cooperation, and further leverages on the strengths in integrating resources, management and brands competiveness, thus jointly expanding the Chinese market and rendering diverse offerings for hotel owners."
Mr. Roc Huang, Director and Executive Deputy General Manager of HK CTS Hotels Co., Ltd. (Left) and Mr. Kent Sun, Chief Development Officer, IHG Greater China (Right) inked a strategic partnership agreement
Jolyon Bulley, CEO of IHG Greater China, remarked: "This is InterContinental Hotels Group's first time to authorized its franchise in China to HK CTS Hotels Co., Ltd., which demonstrates HK CTS Hotels Co., Ltd. possessed the international management capability to deliver more value for hotel owners."
Upon execution of this agreement, HK CTS Hotels Co., Ltd. and InterContinental Hotels Group will also jointly promote this new franchising and third-party management model to hotel owners. This model is expected to be adopted by 20 up-scale and mid-scale hotels by 2020.
Photo caption: From left to right, Mr. Hao Delin, Secretary of Party Committee, HK CTS Hotels Co., Ltd., Mr. Roc Huang, Director and Executive Deputy General Manager of HK CTS Hotels Co., Ltd., Mr. Chen Rong, the General Manager Assistant of China National Travel Service Group Corporation and the Chairman of HK CTS Hotels Co., Ltd., Mr. Jolyon Bulley, CEO of IHG Greater China, Mr Justin Channe, Chief Operation Officer, IHG Greater China, Mr. Kent Sun, Chief Development Officer, IHG Greater China