Hyatt and Homeinns ink strategic joint venture to create new hospitality brand

Hyatt Hotels Corporation and BTG Hotels Group have announced that affiliates of Hyatt and BTG Homeinns Hotel Group have entered a strategic joint venture to create a new hospitality brand, which is positioned to compete in the growing upper-midscale segment of young travellers in China. The joint venture is expected to unveil hotels under the new brand across gateway cities such as Shanghai, Beijing, Guangzhou, Shenzhen and other cities in China in the next five years. It aims to meet the evolving preferences and growing expectations of Chinese travellers for a seamless, comfortable and convenient travel experience. The new brand, to be named later, will be managed independently by a team of hospitality experts. The collective strengths of Hyatt's global experience in premium hospitality and BTG Homeinns’ scale as one of China’s largest hotel chains, is expected to position both companies to capitalise on China’s expanding travel and tourism market, particularly the growing number of young travellers in China. According to the Ministry of Culture and Tourism of The People's Republic of China, domestic tourism revenue saw a 13% increase last year, recording RMB5.05 trillion in revenue. As income levels continue to rise, China's middle class is seeking higher-quality offerings and travel experiences. BTG Homeinns Hotels Group operates about  3,900 hotels in more than 400 cities. In recent years, BTG Homeinns has invested in expanding its portfolio of midscale hotel brands to meet the growing demand amongst Chinese travellers seeking to upgrade their travel experience. It has developed about 600 midscale hotels across China, including its brands of Yitel Premium, Homeinnplus and Homeinn Selected. “There is a definite opportunity for us to make a mark in the growing upper-midscale segment,” said David Sun, general manager of BTG Homeinns Hotels Group, chairman and chief executive officer of Homeinns Hotel Group. “Our goal is to pioneer a unique home-grown local brand with international backing that will serve as an important competitive advantage for both parties – a win-win situation for Homeinns, for Hyatt and for Chinese consumers.” Meanwhile, this collaboration is expected to provide Hyatt with deep China insights, build brand awareness and grow loyalty with a new set of travellers. Stephen Ho, president of Greater China, global operations, Hyatt, noted that all of Hyatt’s brands are positioned at the high end of every segment in which they operate, and “this joint venture will be no different”. “With 70 iconic hotels and a pipeline of more than 100 properties in Greater China, Hyatt is committed to a long-term strategy of purposeful growth in the region,” said Ho. “Strengthening our representation in the underserved upper-midscale segment will advance our China commitment and is designed to deliver sustainable growth and value to all of our stakeholders. We look forward to bringing our brand of personalised hospitality and culture of care to more Chinese travellers.”