Hyatt expands portfolio across China via joint venture with CR Land

Hyatt Hotels Corporation and China Resources Land (CR Land) have formed a joint venture to expand Hyatt's brand presence across China as part of its asset-light expansion strategy in its second-largest market.

Additionally, Hyatt and CR Land have entered a strategic agreement to develop more Hyatt-branded hotels and have signed agreements for key projects such as Park Hyatt Xi’an and Andaz Dongguan.

The formation of the joint venture and the signing of the strategic collaboration agreement aim to signify deeper collaboration between both parties in terms of strategy and resources, fostering mutual growth, continuous innovation, and creating enduring value in the Chinese market.

CR Land, a business unit of China Resources Group (CR Group), has expanded to 85 cities after three decades. Meanwhile, Hyatt has operated in the Greater China market for over 50 years, with more than 165 properties across 60 markets as of June 2024. The new joint venture aims to enhance Hyatt’s portfolio in Greater China by combining CR Land’s expertise in investment, construction, and local real estate management with Hyatt’s global luxury hotel management experience, creating new experiences for domestic and international travellers.

Under the initial plans, the joint venture, Yuen Kai Holdings, will develop and manage hotels including six existing Mumian hotels (木棉花酒店) in Beijing, Shenzhen, Chengdu, Hangzhou, and Rizhao as well as two new Mumian hotels in Shaoxing and Shanghai. These properties are expected to become part of “The unbound collection” by Hyatt and JdV by Hyatt brands. 

The joint venture is the latest collaboration between Hyatt and CR Land, who first worked together in 2009 on the opening of Grand Hyatt Shenzhen, according to the release. CR Land continues to own Hyatt-managed properties across China, such as Grand Hyatt Shenzhen, Grand Hyatt Dalian, Grand Hyatt Shenyang, and Park Hyatt Hangzhou.

David Udell, group president, Asia Pacific, Hyatt, said: “We are excited about the collaboration between Hyatt and CR Land, as it represents a significant advancement in our dedication to the Chinese market. Our growth is built on strong alliances with like-minded businesses, and CR Land’s local expertise perfectly aligns with our vision.”

Zhang Dawei, vice chairman of the board of CR Land and chief product officer, said: “Our joint venture with Hyatt marks an exciting new chapter for CR Land. We are confident that Hyatt’s expertise in the hotel industry and globally renowned brand reputation will unlock unprecedented business growth opportunities and enhance our service capabilities. Mumian hotels, now part of our joint venture, will retain their distinctive identity, strengthen their brand competitiveness, and solidify their position within the Chinese hotel landscape."

Stephen Ho, president of growth and operations, Asia Pacific, Hyatt, said: "We are interested in building long-term, fruitful relationships with our owners that showcase a desire to grow together. This collaboration will help us continue our commitment to expand in China through asset-light growth and lean into caring for the high-end traveller as a differentiator to our competition."

Richard Li, the newly appointed chief executive officer of the joint venture, Yuen Kai Holdings, said: “We are dedicated to delivering distinctive and memorable experiences for our guests, looking to leverage the robust resources of CR Land and we continue to build strong growth momentum with Hyatt’s inorganic expansion of locally relevant offerings in China.”

MARKETING-INTERACTIVE has reached out to Hyatt for more information. 

Don’t miss: 'Be more here' in APAC: How Hyatt embraces wellbeing with the power of travel

Back in July, Hyatt unveiled its brand platform “Be more here” in Asia Pacific to invite guests and consumers to lean into the transformative powers of travel and be more present.  

Building upon its global launch earlier this year, the regional launch of the campaign aims to highlight that the World of Hyatt’s people, places, spaces and experiences allow guests to feel more cared for, focus on their own wellbeing and discover sought-after destinations through rewarding benefits

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