Chinese hotel groups are accelerating their global expansion, taking homegrown management expertise into overseas markets as they seek new growth opportunities in Southeast Asia.
On Monday, domestic hotel operator, Sunmei Hotels Group, announced that its SHANKEE hotel in Jakarta, Indonesia, turned profitable in its first month after just 160 days of development, as the company accelerates its overseas expansion by exporting hotel management capabilities.
The franchise hotel in Ho Chi Minh City, Vietnam, also recorded occupancy rates exceeding 95 percent on multiple days during its first two weeks of operation, the group said.
Targeting price-sensitive business travelers and middle-income consumers, SHANKEE has positioned itself in the economy and midscale segments, with room rates ranging from 200 to 400 yuan ($30 to $60) per night in Jakarta and 260 to 400 yuan in Ho Chi Minh City.
To control investment costs, the group said it determines hotel construction budgets based on local room rates, keeping the construction cost per room below 70,000 yuan.
"Overseas room rates determine how much can be invested in each room," Ma Yingyao, chairman and CEO of the group, said.
Having built its business in China's smaller cities over the past 16 years, the group sees similar market conditions in the two overseas cities where price-sensitive travelers and a fragmented hotel market with relatively low chain penetration create opportunities for affordable, standardized hotel services, Ma added.
To shorten development time and reduce costs, the brand combined standardized designs and modular components developed in China with localized procurement. It works with 300 suppliers in China, and its modular construction approach can shorten building time by around 30 percent, according to the company.
Rather than shipping all materials from China, the group also sources supplies based on local availability, tariffs, and import regulations. Most materials for its Jakarta hotel are now procured locally, helping reduce logistics expenses and currency risks while maintaining consistent quality standards, it said.
"We are not taking a hotel overseas, but a set of capabilities that can help hotels take root locally," Ma said.
Sunmei said it plans to replicate its overseas operating model through franchising after testing local supply chains and management systems at directly operated hotels. Under its current investment model, a SHANKEE property is projected to recoup its investment in about 2.6 years.
The expansion comes as Chinese hotel groups increasingly look to international markets for growth, with Southeast Asia emerging as a key destination. The China Tourism Academy's Report on China's Tourism Accommodation Industry 2025-2026 identified internationalization as one of five major trends shaping the sector, noting that Chinese homegrown hotel brands are focusing their overseas expansion on Southeast Asia.
According to the report, the industry's overseas expansion is entering a new phase centered on ecosystem development, technology empowerment, and cultural identity, with operators increasingly offering integrated support covering branding, management, supply chains, and membership systems.
