SSAW Hotels & Resorts signed a master franchise and distribution cooperation agreement with Choice

According to the announcement from Zhitong Finance APP, SSAW Hotels & Resorts (301073.SZ) has signed a comprehensive franchise and distribution cooperation agreement with Choice Hotels International, Inc. (NYSE: CHH, hereinafter referred to as "Choice Hotels"), a wholly-owned subsidiary of Choice Hotels Licensing, B.V. (hereinafter referred to as "Choice"). The company has obtained exclusive brand usage and franchise rights for two hotel brand series under Choice, COMFORT and QUALITY, in mainland China. Additionally, the first batch of 68 hotels under SSAW will access Choice's global distribution channels, including Choice's website and mobile applications, and will receive distribution services provided by Choice (including sales, marketing, distribution, and reservation services and rights). According to the contract, the development period is from the effective date of the contract until December 31, 2045. During the development period, SSAW Hotels & Resorts must open and operate a certain cumulative number of designated brand hotels in mainland China. If the company fails to achieve the target number of hotel openings by the end of each year starting from the sixth year of the agreement, Choice has the right to reduce the scope of rights, narrow the licensed area, or terminate the exclusivity. At the same time, the non-compete obligations of SSAW Hotels & Resorts in the corresponding area will also be lifted. The announcement states that Choice Hotels is one of the largest hotel franchise groups in the world, with extensive industry influence globally. The cooperation with Choice allows the company to obtain exclusive brand usage and franchise rights for the COMFORT and QUALITY brand series in mainland China and to connect its hotels to Choice's global distribution channels, which is an important strategic measure to leverage both parties' resources for complementary advantages, brand building, enhancing the company's internationalization level, and expanding overseas market channels