FX Hotels Group Inc (富驛酒店集團), which manages more than 50 directly operated and franchise hotels in Taiwan and China, aims to sign franchise contracts with a total of 30 hotels this year, amid plans to slow its expansion pace.
Founded in 2002, FX Hotels opened its first hotel in Taiwan in 2011 following years of business in China. The group has four brands, including fashion hotel brand FX Hotels (富驛時尚酒店), boutique hotel brand Boutix (泊逸精品酒店), FX Inn (富驛商旅) and luxury resort brand Artix (雅逸渡假酒店).
Last year, the hotel operator said it wanted to sign franchise contracts with a total of 100 hotels per year before 2016, but has altered its plans to expand at a slower and steadier pace.
“We signed contracts with six new partners in China in January,” the company said in a statement.
The six hotels are in second-tier cities in China, including Shaanxi Province’s Xian, Hubei Province’s Wuhan, Henan Province’s Zhengzhou and Xiapu County in Fujian Province, as well as Suzhou and Yangzhou in Jiangsu Province, the company said.
The hotel operator might only add 30 hotel partners per year, hoping to sign contracts to Chinese hotels with higher business quality and better location, the company said.
As of the end of last month, the hotel operator had signed franchise contracts or directly operated 99 hotels in Taiwan and China, with 45 hotels still under construction or having their interiors decorated, the company said.
Consolidated revenue stood at NT$69.5 million (US$2.29 million) last month, up 11.58 percent from a year earlier on the back of strong demand during the Lunar New Year holiday, company data showed.
The six-day holiday falling between last month and this month led more people to travel domestically, raising occupancy at FX Hotels to nearly 90 percent last month, the data showed.