HYATT International is venturing into the mid-market segment in Asia, with plans already underway to introduce its Hyatt Place and Hyatt House brands in China and India.
The continent’s first Hyatt Place will debut in Bangalore in 2012, while management agreements have already been signed for two Hyatt Places and one Hyatt House in Shanghai—to be launched from 2014 onwards.
Steve Haggerty, global head, real estate and development, Hyatt Hotels, said: “We have reviewed both China and India from the outset because of their critical mass to serve the market.”
“For China, we have been there for long time, and feel the market is ready because of proliferation of brands like old full-service hotels and inconsistent budget hotels,” he added. “There is a gap between five-star and budget hotels. The size of the market is large and it will be new proposition for China.”
The four properties in the pipeline are new-build products offering 100-250 rooms, located in urban or suburban locations. Hyatt Place offers limited services and at least one F&B outlet serving multiple cuisines, one to two small meeting rooms, and fitness facilities. Hyatt House, on the other hand, is an all-suite concept featuring larger rooms, small kitchenettes and social gathering areas, catering to customers looking for extended stays.
As for expansion plans, Hyatt Hotels senior VP for real estate and development in China, Nong Xia, said: “We will control the numbers and won’t compete directly with five-star or budget brands. Potential locations (in China) are Beijing, Hangzhou and Dalian at the first stage. Gradually, the brands will venture into second-tier cities.”
