CHICAGO—Hyatt Hotels Corporation and Tianfu Minyoun Hospitality have entered into a strategic development agreement for 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. Tianfu Minyoun becomes the first authorized third-party management company for franchised Hyatt hotels in China.
Under the 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 destinations across the country.
“The relationship with Tianfu Minyoun is yet another milestone for Hyatt’s growth in China,” said Mark Hoplamazian, president/CEO of 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.”
Added Zhang Jianming, chairman of Tianfu Minyoun, “Tianfu Minyoun is a Chinese hotel group with 20 years of 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.”
Tianfu Minyoun has secured a credit line of more than $4.75 billion from Sinhuan Tianfu Bank, which would go toward 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 $1.5-billion-plus industrial fund to support the agreement.