Hyatt and Homeinns Enter into Strategic Joint Venture to Expand Footprint across China

Joint venture to leverage strengths of Hyatt and Homeinns, create new
hospitality brand aimed at meeting the evolving travel trends in China
by offering a different premium travel experience in the upper-midscale
segment

CHICAGO & SHANGHAI–(BUSINESS WIRE)–Hyatt
Hotels Corporation
(NYSE: H) and BTG Hotels (Group) Co., Ltd.
(Shanghai Stock Exchange: 600258) announced today affiliates of Hyatt
and Homeinns Hotel Group (affiliated with BTG Hotels which is also named
BTG Homeinns Hotels Group) have entered a strategic joint venture to
create a new hospitality brand. The brand, to be named later, is aimed
at meeting the evolving needs and aspirations of a growing number of
young travelers in the upper-midscale segment in China, providing them
with a seamless and premium travel experience.


In an unprecedented move expected to set a new benchmark for the local
hospitality industry, the collective strengths of Hyatt’s global
experience in premium hospitality and BTG Homeinns’ scale as one of
China’s largest hotel chains, is expected to position both companies to
capitalize on China’s expanding travel and tourism market. According to
the Ministry of Culture and Tourism of The People’s Republic of China,
domestic tourism revenue saw a 13% increase last year, recording CNY5.05
trillion in revenue. As income levels continue to rise, China’s middle
class is seeking higher-quality offerings and travel experiences.

Under the joint venture, Hyatt and BTG Homeinns will create and launch a
new hospitality brand positioned to compete in the currently underserved
upper-midscale segment. In a bid to better serve the unique needs of
Chinese consumers, the new and entirely homegrown hotel brand will be
built specifically to meet Chinese travelers’ preferences and growing
expectations for a seamless, comfortable and convenient travel
experience.

There is a definite opportunity for us to make a mark in the growing
upper-midscale segment,” said David Sun, general manager of BTG Homeinns
Hotels Group, chairman & chief executive officer of Homeinns Hotel
Group. “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.”

With 70 iconic hotels and a pipeline of more than 100 properties in
Greater China, Hyatt is committed to a long-term strategy of purposeful
growth in the region, said Stephen Ho, president of 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.”

All of our brands are positioned at the high end of every segment in
which they operate, and this joint venture will be no different.
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. We look forward
to bringing our brand of personalized hospitality and culture of care to
more Chinese travelers,” added Mr. Ho.

BTG Homeinns Hotels Group operates one of China’s largest and fastest
growing economy hotel chain – boasting a presence of about 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 amongst Chinese travelers seeking to upgrade their travel
experience. It has developed a strong presence of about 600 midscale
hotels across China, including its successful brands of Yitel Premium,
Homeinnplus and Homeinn Selected.

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. 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,” added Mr. Sun.

The joint venture is expected to unveil hotels under the new brand
across gateway cities such as Shanghai, Beijing, Guangzhou, Shenzhen and
other cities in China in the next five years. The new brand will be
managed independently by a team of highly experienced hospitality
experts.

The term “Hyatt” is used in this release for convenience to refer to
Hyatt Hotels Corporation and/or one or more of its affiliates.

About Hyatt Hotels Corporation

Hyatt Hotels Corporation, headquartered in Chicago, is a leading global
hospitality company with a portfolio of 19 premier brands. As of
December 31, 2018, the Company’s portfolio included more
than 850 properties in 60 countries across six continents. The Company’s
purpose to care for people so they can be their best informs its
business decisions and growth strategy and is intended to attract and
retain top colleagues, build relationships with guests and create value
for shareholders. The Company’s subsidiaries develop, own, operate,
manage, franchise, license or provide services to hotels, resorts,
branded residences, vacation ownership properties, and fitness and spa
locations, including under the Park Hyatt®, Miraval®, Grand
Hyatt®
, Alila®
, Andaz®, The
Unbound Collection by Hyatt®
, Destination®
Hyatt
Regency®
, Hyatt®, Hyatt Ziva
, Hyatt
Zilara
, Thompson Hotels®, Hyatt
Centric®
, Hyatt House®, Hyatt Place®, Joie
de Vivre®
tommie™Hyatt
Residence Club® 
and Exhale® brand names,
and operates the World of Hyatt® loyalty program that provides
distinct benefits and exclusive experiences to its valued members. For
more information, please visit www.hyatt.com.

About BTG Homeinns Hotels Group

BTG Homeinns Hotels Group, with an official name of BTG Hotels (Group)
Co., Ltd on the stock exchange market, is a well-known hotel group in
China which is committed to leading the public travel accommodation
through professional and passionate work to satisfy the diverse personal
needs of guests. BTG Homeinns Hotels Group consists of nearly 20 brand
series and nearly 40 products with accommodation as its core. As of the
end of Sept. 2018, BTG Homeinns Hotels (Group) Co., Ltd. operates about
3,900 hotels in more than 400 cities across the country, covering full
range of hotel businesses, including Upscale Business Chain Hotels,
Midscale & Upper Midscale Chain Hotels, Economy Chain Hotels, Hotels &
Resorts, Long-stay Apartments and Hotel Alliance.

About Homeinns Hotel Group

Homeinns Hotel Group operates one of the China’s largest and fastest
growing economy hotel chains. It was a formerly NASDAQ listed company
and now is a subsidiary of BTG Homeinns Hotels Group. It is developed
from a company of merely 22 hotels to a hotel giant with more than 3,000
hotels. In April 2016, Homeinns Hotel Group merged with BTG Hotels Group
and became a subsidiary of newly founded BTG Homeinns Hotels Group.

Forward-Looking Statement

Forward-Looking Statements in this press release, which are not
historical facts, are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements
include, but are not limited to, statements related to the companies’
strategic joint venture relationship, branding initiatives, growth
plans, objectives, goals, expectations, beliefs, business strategies,
future events, business conditions, business trends and expectations,
and involve known and unknown risks that are difficult to predict. As a
result, our actual results, performance or achievements may differ
materially from those expressed or implied by these forward-looking
statements. In some cases, you can identify forward-looking statements
by the use of words such as “may,” “could,” “expect,” “intend,” “plan,”
“seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,”
“continue,” “likely,” “will,” “would” and variations of these terms and
similar expressions, or the negative of these terms or similar
expressions. Such forward-looking statements are necessarily based upon
estimates and assumptions that, while considered reasonable by us and
our management, are inherently uncertain. Factors that may cause actual
results to differ materially from current expectations include, among
others, general economic uncertainty in key global markets and a
worsening of global economic conditions or low levels of economic
growth; the rate and the pace of economic recovery following economic
downturns; levels of spending in business and leisure segments as well
as consumer confidence; declines in occupancy and average daily rate
(“ADR”); limited visibility with respect to future bookings; loss of key
personnel; hostilities, or fear of hostilities, including future
terrorist attacks, that affect travel; travel-related accidents; natural
or man-made disasters such as earthquakes, tsunamis, tornadoes,
hurricanes, floods, wildfires, oil spills, nuclear incidents, and global
outbreaks of pandemics or contagious diseases or fear of such outbreaks;
our ability to successfully achieve certain levels of operating profits
at hotels that have performance tests or guarantees in favor of our
third-party owners; the impact of hotel renovations and redevelopments;
risks associated with our capital allocation plans and common stock
repurchase program and other forms of shareholder capital return,
including the risk that our common stock repurchase program could
increase volatility and fail to enhance shareholder value; our intention
to pay a quarterly cash dividend and the amounts thereof, if any; the
seasonal and cyclical nature of the real estate and hospitality
businesses; changes in distribution arrangements, such as through
internet travel intermediaries; changes in the tastes and preferences of
our customers; relationships with colleagues and labor unions and
changes in labor laws; the financial condition of, and our relationships
with, third-party property owners, franchisees, and hospitality venture
partners; the possible inability of third-party owners, franchisees, or
development partners to access capital necessary to fund current
operations or implement our plans for growth; risks associated with
potential acquisitions and dispositions and the introduction of new
brand concepts; the timing of acquisitions and dispositions, and our
ability to successfully integrate completed acquisitions with existing
operations; failure to successfully complete proposed transactions
(including the failure to satisfy closing conditions or obtain required
approvals); our ability to successfully execute on our strategy to
expand our management and franchising business while at the same time
reducing our real estate asset base within targeted timeframes and at
expected values; declines in the value of our real estate assets;
unforeseen terminations of our management or franchise agreements;
changes in federal, state, local, or foreign tax law;
the impact
of changes in the tax code as a result of the Tax Cuts and Jobs Act of
2017 and uncertainty as to how some of those changes may be applied;
increases in interest rates and operating costs; foreign exchange rate
fluctuations or currency restructurings; lack of acceptance of new
brands or innovation; general volatility of the capital markets and our
ability to access such markets; changes in the competitive environment
in our industry, including as a result of industry consolidation, and
the markets where we operate; Hyatt’s ability to successfully grow the
World of Hyatt loyalty program; cyber incidents and information
technology failures; outcomes of legal or administrative proceedings;
and violations of regulations or laws related to our franchising
business; and other risks discussed in Hyatt’s filings with the SEC,
including Hyatt’s annual report on Form 10-K, which filings are
available from the SEC. We caution you not to place undue reliance on
any forward-looking statements, which are made only as of the date of
this press release. We do not undertake or assume any obligation to
update publicly any of these forward-looking statements to reflect
actual results, new information or future events, changes in assumptions
or changes in other factors affecting forward-looking statements, except
to the extent required by applicable law. If we update one or more
forward-looking statements, no inference should be drawn that we will
make additional updates with respect to those or other forward-looking
statements.

Contacts

Lillian Zhang
Hyatt – Greater China
+86 21 6081 1234
lillian.zhang@hyatt.com

Jason
Xu
Senior Director of PR & Brand
BTG Homeinns Hotel Group
+86
186 0211 0929
zfxxu@homeinns.com

error: Content is protected !!