Jin Jiang International Hotels is planning plans to enter the midscale hotel market, with the launch of a new brand called Metropolo.
The Shanghai-based hotel management company has signed a deal to acquire 21 Smart Hotels for CNY710 million (US$115 million) from Tianjin Huasheng Tourism Equity Investment Partners and China Wallink Holding.
These hotels are located in 18 cities across China, including Guangzhou, Wuhan, Shenyang, Zhengzhou, Fuzhou and Hefei, and will join several other properties rebranded from Jin Jiang’s existing portfolio to create the new Metropolo brand. Over the next three years, the hotel plans to expand the portfolio of Metropolo properties to 100.
“We’ve noticed huge demand for limited service hotels in the country while the current market supply seems far from adequate,” said Jin Jiang’s vice chairman & CEO, Yang Weimin, was quoted saying by the Shanghai Daily. “Our latest acquisition of Smart hotels will certainly offer us a great opportunity to consolidate our strength in this segment.”
Jin Jiang said the majority of the Metropolo hotels would be located in key first tier cities and provincial capitals. Room rates will range from CNY300-500 per night.
Currently, Jin Jiang serves the upscale and luxury hotel sectors, with a portfolio of more than 110 properties and 34,000 hotel rooms across 73 cities in China.