Affiliates of Hyatt Hotels Corp. and Homeinns Hotel Group (affiliated with BTG Hotels) have formed a joint venture to create an upper-midscale brand in China to capitalize on the country's expanding travel and tourism market.
David Sun, chairman/CEO of Homeinns Hotel Group, said, “The combination of Hyatt’s expertise in premium hospitality with our local insight and vast network will ensure our collaboration will create opportunities and benefits for Chinese travelers as well as the overall hospitality industry.”
“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,” added Stephen Ho, president/Greater China, global operations, Hyatt. “This collaboration is expected to provide Hyatt with deep China insights, build brand awareness and grow loyalty with a new set of travelers.”
BTG Homeinns Hotels Group operates approximately 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 among Chinese travelers. It has developed a strong presence of about 600 midscale hotels across China, including its Yitel Premium, Homeinnplus and Homeinn Selected brands.
“We believe a joint-venture relationship, where both parties are invested in the brand and the ultimate outcome, will be the most strategic collaborative model to make an impactful entry into this complex and competitive market,” said Sun. “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.”
The joint venture is expected to open hotels under the new brand across gateway cities such as Shanghai, Beijing, Guangzhou, Shenzhen and other cities across China in the next five years.
According to the Ministry of Culture and Tourism of The People's Republic of China, domestic tourism revenue saw a 13-percent increase last year, recording CNY5.05 trillion in revenue.