Australia’s Argyle Hotel Group (AHG) has made another major move into the Chinese hotel sector, with the signing of an agreement for more than 30 hotels in the southeastern province of Jiangxi.
The company has entered into a CNY500 million (US$82m) joint venture with Jiangxi Tourism Group. This will initially see four hotels in Nanchang, the capital of Jiangxi, rebranded as either Argyle or Grand Argyle properties.
And over the next three years the agreement will also lead to the development or rebranding of 30 more hotels in Jiangxi, comprising 4,200 rooms, under Argyle’s AHG’s Ausotel and recently-launched Ausotel Smart brands. These hotels will be located in key tourism areas of the province, including the popular Mount Lushan.
The state-owned Jiangxi Tourism Group said it sees this partnership as a way to spearhead the province’s tourism development; a sentiment backed by Argyle.
“Signing the JV with Jiangxi Tourism Group is a first for AHG. The partnership will allow us to develop tailor made tourism solutions for Jiangxi province,” said the Australian hotel group’s chief executive officer, Kevin Zhang.
While not as well known as some of its larger rivals, Argyle is one of the largest international hotel groups currently operating in mainland China. Today, the company operates 68 hotels in the country, under its Argyle, Argyle Grand, Argyle Resort, Argyle Boutique, Ausotel and Ausotel Smart brands, comprising US$2.8 billion worth of assets.
It is focused on expanding in China’s fast-expanding second, third and even fourth tier cities. The first four hotels in this JV will mark Argyle’s first properties in Nanchang.
Argyle also operates multiple hotels in Australia and Fiji.
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