On January 23, Marriott International Group signed a cooperation agreement with Doyle Group, announcing that they will jointly promote the development of the hotel brand of Wonderful Choice under Marriott International in Chinese Mainland. Both parties expect that in the next few years, more than 100 full service hotels under the Debo Group will join the Marriott International Group's premium hotel brand through joint cooperation.
Premium Selection+Kaiyuan Capital, International Brands Complement Local Operational Advantages
It is reported that through this cooperation, Marriott International Group will use a franchising model to award its Zhenpinzhixuan brand to some of the Kaiyuan Mingdu Hotels and other high-end brands under the management of De Mo Group for joint cooperation. In the future, these cooperative hotels will launch their own official booking channels and join both parties' loyal member programs.
Zheng Nanyan, Executive Chairman of Dehou Group, stated that this cooperation will help strengthen the connection between hotel brands and consumers. The new dual brand cooperation model will provide assistance for the long-term development of Dehou's high-end brand hotels and premium products in the Chinese market. Mao Yibing, President of Marriott International Group in Greater China, emphasized that Deloitte Group has rich experience in local hotel development and operation, and the joint efforts of domestic and foreign hotel brands will help Marriott International deeply cultivate the Chinese market in the future.
It is reported that Kaiyuan Mingdu was founded in 2005 and is a luxury Chinese style hotel brand under the DeMo brand. It has established 180 branded hotels across the country, with a total of over 50000 luxury rooms. De Mo Group currently owns 10 brands, with over 1400 hotels in operation or under construction. High end brands include Kaiyuan Mingdu, Guantang, etc. Its main business also includes catering and offline entertainment.
Zhenpin Zhixuan is one of the selected collection brands under Marriott International Group, officially launched in 2015. It has opened over 100 hotels in nearly 30 countries and regions worldwide, currently operating 4 hotels in China, and 4 hotels under construction.
It is revealed that the cooperation model between the two sides is flexible, with Zhenpin Selection+Kaiyuan Mingdu joint venture, supplemented by a franchise model. In the future, more new products may be developed.
The franchising models of international and high-end brands are gaining an increasing proportion in the Chinese hotel market
"The advantages of Marriott International lie in its brand influence, international customer base, competitive franchise model, and mature membership system." Speaking of the advantages of cooperation between the two parties, Zheng Nanyan told the New Beijing News Shell Finance reporter that with the support of technology and creativity, it is more feasible to combine the Baidayu membership system of Dehou Group with the membership system of Marriott International Group in the future, The cooperation between both parties will also bring more cost-effective benefits to the owners.
Yu Guogang, Chief Development Officer of Marriott International Group in Greater China, pointed out that as consumers become younger, hotel accommodation has shifted from products to experiences, and experience oriented hotel brands are favored. Therefore, retaining the individuality of individual hotels is one of Marriott International's main promoted brands in recent years. But as a soft brand, the increase in popularity of Zhenpin Selection still requires a development process. He believes that "soft brands" provide a more personalized experience, combined with the "universality" of chain hotel facilities and services, to better meet the current and constantly changing consumer demand characteristics.
He emphasized that the cooperation between the two leading hotel groups at home and abroad can achieve a combination of advantages. "For investors, the combination of" Premium Selection "and" Kaiyuan Mingdu "not only enhances international brands and image, but also provides local operational experience - the latter is precisely the advantage of the Debou Group."
The franchising model of international and high-end brands is becoming increasingly important in the Chinese hotel market. In Yu Guogang's view, this cooperation caters to the current development trend of the Chinese consumer market. It is reported that in 2023, nearly 70% of Marriott International Group's franchise hotel contracts were signed, and in 2024, franchise hotels accounted for over 60% of newly opened hotels, surpassing the proportion of managed hotels for the first time. "The group has opened franchising for 12 brands in China, accounting for 50% of the current number of operating hotel brands." He believes that the reason why the international brand franchising model has gradually improved in the past two years is closely related to the decades of development of the Chinese hotel market, the continuous maturity of hotel professional managers, and the increasingly diversified needs of hotel investors.