Shanghai’s Xuhui District has the debut property in FRHI Hotels & Resorts' new Neqta Hotels brand portfolio.
The portfolio, a joint venture with China's Jiangsu Golden Land Group, focuses on upper-midscale hotels across China. The first hotel opened close to Shanghai's World Expo site, and a second property is expected to debut soon in Nanjing.
"With domestic business travel on the rise and market research indicating Chinese consumer spending will more than double over the next five years, we see this as a remarkable opportunity to further grow our footprint in China," Wayne Buckingham, FRHI's SVP of operations, Asia Pacific and chairman said in a statement. The brand, he added, will target the millennial business traveler in the 22 to 40 age demographic.
Joseph Soh, the recently named managing director of the new joint venture, said that the expansion into "the right markets" will be a top priority for the brand. "We believe there is a natural opportunity to develop Neqta Hotels within many of Golden Land's predominantly mixed-use developments," he said. "With an average room count of about 150 and room sizes in the 28 to 32 square meter (300 to 350 square feet) range, we also see the brand being a compelling business proposition for Chinese property developers looking to invest."