BEIJING—NH Hotel Group, a hotel chain in Europe, has launched a joint venture office and Chinese brand called Nuo Han here. The group also has plans to develop two new hotels under the NH Hotels brand to open in the China market before the end of the year.
NH China (Beijing NH Grand China Hotel Management Co., Ltd), the joint venture between NH Hotel Group and HNA Hospitality, is located in the central business district of Chaoyang, Beijing.
The establishment of this venture follows the strategic memorandum of understanding signed between NH and HNA as part of the bilateral trade summit between Spain and China in the presence of Prime Minister Mariano Rajoy of Spain and Premier Li Keqiang of People’s Republic of China.
The joint venture’s corporate purpose is to build a portfolio of NH Hotels and NH Collection brand hotels in the midscale and upscale segments in China owned by HNA or by third parties. The target is to develop 120 to 150 NH-branded hotels by the year 2020. This business approach aligns with NH Hotel Group’s strategy of pursuing growth using capital-light formulas, according to the company.
“The joint venture’s establishment is a key milestone for the international development of HNA Hospitality Group with NH Hotel Group to build a brand portfolio in midscale, upscale and luxury segments. HNA Hospitality Group will leverage the leading operation experience, brand awareness of NH Hotel Group and the HNA resources to collaborate very closely to provide high quality services to Chinese travelers and loyalty members of the two groups,” said Bai Haibo, chairman of HNA Hospitality Group.
Federico J. González Tejera, CEO of NH Hotel Group, stated, “China, the second largest economy in the world, is a fast-growing market for both international and local hotel chains. The middle-class boom with more than 100 million China citizens is expected to be the key driver of an increase of high level consumption in travel and hospitality. With its strategic plan, NH Hotel Group will be ideally positioned to take advantage of this development in the Chinese market.”
The joint venture is developing two NH branded hotels to open in the second half of 2016 in Sanya and Haikou of Hainan Province. The NH Sanya Phoenix International Airport will have 334 rooms, while the NH Haikoi Meilan International Airport will have 1,001 rooms, making it the largest NH Hotels-branded hotel in the world, according to the company. The joint venture also expects to grow its portfolio under management of 10 to 20 hotels by the end of the year. It is pursuing opportunities in Beijing, Shanghai and Hangzhou and exploring potential in additional cities in China.