Dusit International, a leading Thai hotel management chain, has clinched a franchising deal with China-based hotelier Dossen International Group to operate 40 branded resorts and residences under the Dusit Princess label across China over the intermediate term.
Group chief executive Suphajee Suthumpun said Dusit International aims to capitalise on China's growing tourism and enhance its brand awareness among Chinese customers.
"The deal is in line with Dusit's strategy for sustainable and profitable growth in the future, which includes an aggressive expansion in China," she said.
Ms Suphajee said Dossen wants at least 40 Dusit Princess properties in major leisure destinations across China within the next five years, with 27 of them expected to open before 2022. The 40 properties will include resorts and residences.
She said Dusit International believes its new partnership with Dossen will facilitate a rapid expansion of the Dusit Princess brand in China, while Dossen will explore development options for properties under this label.
China's tourism industry has seen unprecedented development following massive growth of the Chinese economy. Its domestic tourism has risen significantly, leading to growing demand for quality leisure and wellness holiday destinations in the country.
The World Tourism Organization forecast China will become the largest travel destination by 2020, with an estimated 137 million international arrivals, representing 8.6% of the global population.
"With Dossen's local knowledge and expertise, I believe this strategic partnership will mark a significant milestone to increase the scale and reach of our hotel brands and operations in China," Ms Suphajee said.
Allan Cheng, chairman and chief executive officer of Dossen International, expects Dusit International's expertise and the group's 40 properties to boost Dusit's market share and brand awareness in China.
Dossen operates more than 1,200 hotels under eight brands in over 200 cities worldwide.
Dusit International has expanded its hotel chain management business aggressively in recent years, pushing the franchising model this year. The group clinched a franchising deal with Linh Chi Co to manage Dusit Princess Moonrise Beach Resort at Phu Quoc in Vietnam earlier.
Dusit manages 29 hotels in 17 countries, including Thailand, under four brands: Dusit Thani, dusitD2, Dusit Princess and Dusit Devarana. Dusit International is part of Dusit Thani Group, which specialises in hotel development and management.
The group has 46 new hotels in 21 countries in the pipeline, with most in the Middle East, Europe, Africa and Asia, especially in China.