Hyatt Hotels Corp. and Tianfu Minyoun Hospitality have entered into a strategic development agreement to drive the expansion of Hyatt Place and Hyatt House hotels in China. Franchise agreements for the first three Hyatt-branded hotels under the partnership have already been signed.
Photo: Liguo Yin, assistant vice president, Sichuan Tianfu Bank; Mark Hoplamazian, president and ceo, Hyatt Hotels Corp.; Zhang Jianming, chairman, Tianfu Minyoun Hospitality; William Zen, chairman, Road King Infrastructure Ltd.; Shangyuan Liu, chairman, Nuo Ruide. Photo: John Gress Photography
Under the agreement, 50 Hyatt Place and Hyatt House hotels are expected to be developed by Tianfu Minyoun 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. Those three hotels will be operated and managed by Tianfu Minyoun, which is also planning to develop hotels under The Unbound Collection by Hyatt and Hyatt Centric brands.
Tianfu Minyoun has secured a credit line of $4.74 billion from Sinhuan Tianfu Bank, which would go towards the construction and renovation loans for hotel owners of the projects contemplated by the agreement. Tianfu Minyoun has also teamed up with Road King Investment Group to establish a $1.58 billion industrial fund to support the agreement.
“The relationship with Tianfu Minyoun is yet another milestone for Hyatt’s growth in China,” said Mark Hoplamazian, president and ceo Hyatt Hotels Corp. “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 chairman Zhang Jianming noted that his firm “is a Chinese hotel group with 20 years’ experience in operating upscale hotels, has developed strong guest loyalty and a striking return on investment. 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.”