Hyatt's China Expansion Deal

Hyatt and China Resources Land Team Up

To increase the brand's visibility throughout China, Hyatt Hotels Corporation has revealed that affiliates of China Resources Land and Hyatt have formed a joint venture and signed a strategic collaboration agreement. This is a component of Hyatt's brand expansion strategy in its second-largest market, which is asset-light. In line with the original plans, the joint venture Yuen Kai Holdings Limited will build and oversee a portfolio of hotels that includes two brand-new Mumian hotels in Shaoxing and Shanghai that are scheduled to open in the first quarter of 2025, in addition to the six already-existing Mumian hotels in Beijing, Shenzhen, Chengdu, Hangzhou, and Rizhao.

These hotels are anticipated to be included in the Hyatt brands' JdV and The Unbound Collection. Hyatt and CR Land also signed contracts for important projects such as Park Hyatt Xi'an and Andaz Dongguan and announced strategic cooperation to develop more Hyatt-branded hotels.

Under the China Resources Group (CR Group), China Resources Land Limited is the business unit operating and building urban areas. After thirty years of growth, CR Land is one of China's most significant urban investors, developers, and operators, having spread to eighty-five cities inside and beyond the Chinese mainland, including Hong Kong and London. In keeping with its corporate motto of "Better Quality, Better City," CR Land works hard to offer its stakeholders the most significant urban development and operation solutions.

As of June 30, 2024, Hyatt had more than 165 open properties spread over 60 markets in Greater China, a portfolio that spans more than 50 years. Through the combination of CR Land's construction, investment, and local commercial real estate management skills with Hyatt's extensive experience in premium hospitality and global proficiency in luxury hotel management, the new joint venture aims to expand Hyatt's portfolio in Greater China by offering both domestic and foreign travellers new experiences. Establishing a joint venture and signing a strategic collaboration agreement represents an excellent strategy and resource collaboration between the two parties to promote mutual growth, ongoing innovation, and long-term value in the Chinese market.

David Udell, Group President of 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.”

“CR Land embarked on its hospitality journey in 2002, and over the past 22 years, we have grown and flourished alongside the Chinese economy,” said Zhang Dawei, vice chairman of the board of CR Land and chief product officer. “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. As part of our joint venture, Mumian hotels will retain their distinctive identity, strengthen their brand competitiveness, and solidify their position within the Chinese hotel landscape."

After working together to open Grand Hyatt Shenzhen in 2009, Hyatt and CR Land are collaborating again on this joint venture. CR Land is still the owner of Grand Hyatt Shenzhen, Grand Hyatt Dalian, Grand Hyatt Shenyang, Park Hyatt Hangzhou, Grand Hyatt Hefei, Andaz Xiamen, and Andaz Shenzhen Bay, among other Hyatt-managed properties around China.

"We are interested in building long-term, fruitful relationships with our owners that showcase a desire to grow together,” said Stephen Ho, President of Growth and Operations, Asia Pacific, Hyatt. "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 Limited, said, “I am deeply honoured to take on this new role and am excited to develop and expand the collection of Mumian hotels as part of The Unbound Collection by Hyatt, JdV by Hyatt and Destination by Hyatt brands. We are dedicated to delivering distinctive and memorable experiences for our guests, looking to leverage the robust resources of China Resources Land. We continue to build strong growth momentum with Hyatt’s inorganic expansion of locally relevant offerings in China.”