Junlan Hotel Group Expands to Sabah, Marking the First International Expansion of a Domestic Resort Brand

Hangzhou, June 14, 2016 /PRNewswire/ -- In recent years, the boom in outbound travel among Chinese tourists has accelerated the pace of overseas resource consolidation in China’s hotel industry. On June 2, 2016, Junlan Hotel Group and Deli Enterprises officially reached a cooperation agreement to manage Junlan Resort Sabah. Sabah, a well-known tourist resort in Malaysia, boasts exceptional island vacation resources. The signing of this project signals Junlan Hotel Group’s official entry into the international market and represents the first time a domestic resort brand has independently managed an international output.

Photos from the contract signing ceremony

Exterior view of Junlan Resort Sabah

Scenic details of Junlan Resort Sabah

Outbound Travel Boom Spurs Hotel Industry Globalization

Junlan Hotel Group’s move into the international market benefits from the rapid growth of Chinese outbound tourism over the past decade. Since 2012, China has ranked as the world’s top spender on outbound tourism for several consecutive years. According to data from the China National Tourism Administration, in 2015, the number of outbound travelers from China exceeded 120 million, a year-on-year increase of 12%. With more and more Chinese tourists traveling abroad, the demand in overseas tourism markets has expanded rapidly, along with a growing need for overseas accommodation. Consequently, China’s hotel industry has begun shifting its investment focus abroad, accelerating its global expansion and strategically deploying its presence around the world.

Southeast Asia is one of the most popular destinations for Chinese tourists traveling overseas. Among these, Malaysia offers not only a unique multicultural experience, diverse cuisine, beautiful natural scenery, and well-equipped resorts but also advantages in terms of language, climate, and affordability. China is the largest non-ASEAN source market for Malaysia. Over the past decade, the number of Chinese visitors to Malaysia has grown from over 530,000 in 2006 to 1.64 million in 2015. In March of this year, the Malaysian government announced visa-free entry and electronic visa options for Chinese tourists, aiming to attract 2 million Chinese visitors annually.

Unlike previous overseas expansions by China’s hotel industry, which mainly involved acquisitions, the Sabah project signed by Junlan Hotel Group marks the first international output of a domestic resort brand. It also signals the expansion of the Junlan Resort network from its original “Four Souths and One North” domestic layout into international territories.

Junlan Resorts Extend Brand Influence Overseas

For years, Junlan Hotel Group has been dedicated to building the “Junlan Resort Circle,” promoting the slogan “Real vacations happen at Junlan.” The group is committed to creating Chinese-style resort hotels that reflect oriental culture and contemporary flair. After years of focused development in China’s domestic resort market, Junlan Hotel Group now leads the industry in planning and exploring leisure resort hotel ventures. The Chinese-style leisure vacation model is increasingly embraced by consumers. With precise brand positioning, a strong management team, and positive market response, the Junlan Resort brand is well-positioned to make its mark internationally.

Based on professional considerations for resort offerings, Junlan Resort hotels are typically located in areas rich in tourism and vacation resources. Examples include Liangzhu Junlan, nestled within the uniquely styled Liangzhu Cultural Village; Xiangshuiwan Junlan, set against the backdrop of the natural boundary Niuling Ridge and facing the South China Sea; and Qixianling Junlan, a top-tier themed wellness resort in China, built upon rare tropical rainforest and hot spring resources. Junlan Hotel Group’s choice of Sabah, a renowned tourism destination in Malaysia, for its overseas expansion is also due to the area’s exceptional natural advantages. Sabah is home to Southeast Asia’s highest peak and one of the world’s three most stunning sunset spots, making it a prime vacation destination. Junlan Resort Sabah is located in Kota Kinabalu, the capital of Sabah, just a 10-minute drive from the airport. Popular attractions among Chinese tourists in Kota Kinabalu include Manukan Island, Tanjung Aru Beach, the Floating Mosque, Kawa Mangrove, and Mount Kinabalu Park.

By being the first domestic resort brand to expand internationally, the Junlan Resort brand will leverage its well-established influence in China to provide Chinese tourists abroad with a welcoming, “home-away-from-home” vacation experience.