Retailing, Franchising, and Consumerism Business Intelligence in China

American Hotel Opens China Franchise In Sanya

GuestHouse International Inns, Hotels and Suites is building the foundation for a true international presence with its announced opening of GuestHouse International Hotel Sanya and a new partnership with Jia Bin International.

The Guesthouse International Hotel Sanya is a 176-room resort located in Sanya, situated on the hillside of mountains overlooking the ocean with access to a private beach.

The property features two swimming pools, a banquet hall that can accommodate 200 people, several restaurants and bars, a fitness room, a sauna and massage center and numerous options for entertainment.

"We are extremely pleased to announce the conversion and opening of this property and our new relationship with a prominent China-based corporation," said Jim Grout, president of GuestHouse International. "This partnership is an excellent tie-in for our West Coast U.S. properties because of the relationship with Chinese travelers." In 2003, China Sigma Co., Ltd. approached GuestHouse International on behalf of Jia Bin International, a China Sigma subsidiary. China Sigma is a large, well known developer involved in commercial, residential and resort properties. China Sigma was interested in finding an American hotel franchisor to grant them exclusive franchise rights for mainland China.

At the end of 2005, the GuestHouse International trademark was approved by China and authorization was granted to Jia Bin International. The agreement is for 20 years with several renewable options. "It was truly a pleasure working with representatives of Jia Bin, and we are excited about expanding the GuestHouse family to include them," said Bennett Greenberg, senior vice president of franchise operations for GuestHouse International and the company's lead negotiator on the deal.

"Jia Bin International has secured a right-to-use relationship with GuestHouse, meaning GHI does not have active involvement in their properties; however, any hotel opened in China must comply with the standards of GHI's domestic properties," Greenberg added.

"It is certainly feasible that four or five more properties could be added under the GuestHouse name this year," said Mr. Ye Yang, President of Jia Bin International. "While we will continue to focus on properties similar to the GuestHouse International Hotel Sanya, we are already working on another GuestHouse to be located in Beijing. This property will cater more to commercial and business travelers."

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