Hyatt Hotels Corp. and Chinese hotel chain Homeinns Hotel Group will create a to-be-named hotel brand targeting young travelers in China. The brand will fall in the upper-midscale segment, which Hyatt categorized as underserved in China. "As income levels continue to rise, China's middle class is seeking higher-quality offerings and travel experiences," according to a press release.
The brand will cater to Chinese travelers' preferences. Homeinns Hotels, an affiliate of BTG Hotels that had about 3,900 hotels in more than 400 Chinese cities at the end of September, will provide the local expertise while Hyatt will bring its experience with premium hospitality, said Homeinns Hotel Group chairman and CEO David Sun. Stephen Ho, president of Greater China global operations for Hyatt, said the deal will give Hyatt a deeper understanding of the Chinese market while allowing the company to build the Hyatt brand.
The joint venture plans to open hotels in Beijing, Guangzhou, Shanghai, Shenzhen and other Chinese cities over the next five years. Hyatt had about 100 hotels totaling 27,000 rooms in its China pipeline as of Dec. 31.