(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