Tianfu Minyoun Hospitality (Tianfu Minyoun) and Hyatt Hotels Corporation (NYSE: H) today announced that Hyatt and Tianfu Minyoun entered into a strategic development agreement to drive the expansion of Hyatt Place and Hyatt House hotels in China. The franchise agreements for the first three Hyatt-branded hotels under this strategic development agreement were also signed on the same day.
As leading hospitality companies in China and the United States, Tianfu Minyoun and Hyatt will bring together their resources and leverage their respective strengths for the development of Hyatt Place and Hyatt House hotels, with plans to bring both brands to more vibrant business and travel destinations throughout China. Under the strategic development agreement, 50 Hyatt Place and Hyatt House hotels are expected to be developed by Tianfu Minyoun and in cooperation with Chinese investors over the next five years, the first of which include Hyatt Place Nanchong Gaoping, Hyatt Place Changchun Jingyue and Hyatt House Changchun Jingyue. The three hotels will be operated and managed by Tianfu Minyoun. Additionally, Tianfu Minyoun is also planning to develop hotels under The Unbound Collection by Hyatt and Hyatt Centric brands in unique and attractive destinations across China. Once open, these hotels will be part of Hyatt's loyalty program, World of Hyatt. Guests will be able to earn World of Hyatt points and redeem for free night awards and access many other benefits at Hyatt locations worldwide.
Mark Hoplamazian, President and Chief Executive Officer, Hyatt Hotels Corporation and Zhang Jianming, Chairman, Tianfu Minyoun Hospitality entered into a strategic development agreement to drive the expansion of Hyatt Place and Hyatt House hotels in China. They were joined by members of Hyatt Hotels Corporation, Tianfu Minyoun Hospitality, Road King Infrastructure Ltd., Sichuan Tianfu Bank, and Nuo Ruide. (credit: John Gress Photography)
"The relationship with Tianfu Minyoun is yet another milestone for Hyatt's growth in China," said President and Chief Executive Officer Mark Hoplamazian, Hyatt Hotels Corporation. "Hyatt continues to seek innovative ways to build a diversified brand portfolio by collaborating with owners and developers who share our values and our commitment to expanding our brand growth in a country with such significant growth potential."
"Tianfu Minyoun is a Chinese hotel group with 20 years' experience in operating upscale hotels, has developed strong guest loyalty and a striking return on investment," said Chairman Zhang Jianming, Tianfu Minyoun. "Under this exciting strategic cooperation with Hyatt, we will bring to the market Hyatt-branded hotels in innovative ways and contribute to the sustainable development of China's hotel industry."
"We are pleased to be working with Tianfu Minyoun, the first authorized third-party management company for franchised Hyatt hotels in China," said Asia Pacific Group President David Udell, Hyatt Hotels Corporation. "Hyatt has a strong brand reputation among business and leisure guests for authentic hospitality worldwide. Tianfu Minyoun Hospitality has profound insights into the Chinese market and has gained crucial financial support to power our collaboration with them. Different from exclusive franchise and brand agency models, the cooperation between Tianfu Minyoun and Hyatt is set to make the most of both sides' respective strengths and resources to boost the development of the Hyatt Place and Hyatt House brands in China. With our combined efforts, we look forward to creating distinguished guest experiences that exceed expectations in the dynamic and highly competitive China market."
As a testament of this relationship's capacity, Tianfu Minyoun has also secured a credit line of RMB 30 billion from Sinhuan Tianfu Bank, which would go towards the construction and renovation loans for hotel owners of the projects contemplated by the strategic development agreement. Tianfu Minyoun has also teamed up with Road King Investment Group to establish a RMB 10 billion industrial fund to support the agreement.
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