The ACE alliance between Malaysian-based Hotel Equatorial group and Central Hotels and Resorts (CHR) in Thailand offers guests 21 business, convention and resort properties in the region.
Besides Malaysia, Equatorial operates hotels in China, Myanmar and Vietnam while Central's properties are in Thailand and Nepal, and a new property is opening in Bangladesh in 2001.
Equatorial chief executive officer Lim Kong Yong said the alliance is not a business unit. "We are still separate brands."
Rather, the alliance allows both groups to reap the benefits through common marketing and promotional strategies.
Lim said cross-selling each other's hotels has begun by having sales personnel in each other's premises, referral of business leads and distribution of each other's collateral.
Through the alliance, guests can access the hotels through more than 10 regional sales and reservation offices in eight countries and through LINK, the Hotel Equatorial's own central reservations systems.
Central president and chief executive officer Suthikiati Chirathivat said that the two companies do not compete in terms of geographic location or in terms of products.
Apart from the Central Grand Plaza Hotel and Bangkok Convention Centre, Central has concentrated mainly on holiday destinations in Thailand's popular resorts such as Koh Samui, Hua Hin and Pattaya.
Suthikiati said Central is currently working on a themed hotel in Krabi bay and planning more "back to nature" village-type properties in Thailand.
Central executive vice-president operations Gerd Steeb said the airline industry has demonstrated that through alliances, it can serve clients more efficiently, with better benefits and services.
He said the hotel industry should now make its own contribution to improve guest satisfaction.