(Yicai Global) Feb. 26 -- The Chinese unit of global hospitality giant Hyatt Hotels has formed a joint venture with Home Inns, the country's largest budget hotel chain.
Home Inns Hotel Group will invest CNY91.8 million (USD13.7 million) in the new Yusu Hotel Management unit to take a 51 percent stake, Beijing-based parent company BTG Hotels Group said in a statement.
Hyatt China will pay its own CNY88.2 million contribution in installments following an agreement signed in Shanghai, while the unit's formation still requires government approval.
The JV will bring out a new hotel brand targeting middle-to-high-end tourism markets to meet the business and recreation demands of young travelers and those who travel frequently.
Home Inns Hotel Group is one of China's fastest-growing chain hotels and focuses on running economical, middle-to-high-end hotels. The Shanghai-based firm owns around 3,900 hotels in over 400 cities.
Hyatt China, the wholly-owned unit of Chicago-based Hyatt Hotels, is a leading high-end hotel brand and runs 70 hotels in the country. The firm plans to open more than 100 new hotels in China.
The JV's founding is not expected to significantly impact the financial performance of BTG Hotels, the statement added.
Editor: William Clegg