Cross Hotels and Resorts strikes Japan franchise deal

The agreement with Tokyo-based hotel management group AB Accommo Company will initially see seven new properties — all new-build hotels on greenfield sites, totalling 844 keys and stretching across Okinawa in the far south to Hokkaido — trading under Cross’s Away and Cross Vibe brands within four years.

Cross Hotels operates 21 hotels across three brands — Cross, Cross Vibe and Away — in Southeast Asia including Thailand, Vietnam and Indonesia.

The move signals the travel industry is gearing up for a recovery once border closures and restrictions ease when the COVID pandemic recedes.

Cross Hotels & Resorts managing director Kent Davidson said he had been approached by the Japanese group more than six months ago.

“From the Japanese point of view, they see the value in Flight Centre’s brands and distribution,” Mr Davidson said.

“It’s an international play and it is our broad-based global distribution they are after.

“The real beauty of this deal is it’s a capital-light entry into the Japanese markets.”

Mr Davidson said Cross Hotels & Resorts would soon announce another hotel in Thailand.

“We are very keen to get into Australia, backed by Flight Centre … (but) it’s a matter of finding the right partners in Australia to bring our brands into Australia, whether that be under a franchise or operating model,” he said.

Under the Japanese agreement the first hotel, Away Okinawa Kouri Island Resort, will be on Kouri Island, which is connected to the main Okinawa island by a 2km sea bridge, recognised as the gateway to the tropics.

Away Okinawa Kouri Island Resort, owned by Nikken Housing, is expected to open in July.

“This agreement to franchise our brands into the Japanese market speaks volumes for the work we have done to define our branding and distribution value proposition,” Mr Davidson said.

There were more opportunities for Cross Hotels & Resorts to expand in Japan beyond the initial seven hotels, he added.