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HNA Hospitality Group signs with NH Hotels for new Chinese joint venture

Zhang Ling, chairman of HNA Tourism Group, Li Tie, chief executive of HNA Tourism Group, Bai Haibo, president of HNA Hospitality Group, and Federico Gonzalez Tejera, chief executive of NH Hotel Group unveil the Chinese hospitality brand

HNA Tourism Group’s hospitality branch HNA Hospitality Group and NH Hotel Group announced the launch of the joint venture NH China and the Chinese hospitality brand “Nuo Han”.

The brand represents a promise to meet the guest expectations and bring them a brilliant future.

Also announced its ambitious development plans including two new hotels under NH Hotels branding to enter in the China market before the end of the year.

The establishment of NH China, the joint venture between NH Hotel Group and HNA Hospitality Group, follows the strategic memorandum of understanding signed between NH and HNA Group as part of the bilateral trade summit between Spain and China in the presence of Spanish president Mariano Rajoy and Chinese premier Li Keqiang.

The joint venture’s corporate purpose is to build a portfolio of NH Hotels and NH Collection branded hotels in the midscale and upscale segments in China owned by HNA or by third parties.

The target is to develop 120 to 150 hotels by the year 2020.

This business approach fits with NH Hotel Group’s strategy of pursuing growth using capital-light formulas.

Bai Haibo, chairman of HNA Hospitality Group, stated: “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 operates the luxury hotel brand Tangla.

“HNA Hospitality Group will leverage its leading operation experience, the NH brand and HNA Group’s resources to collaborate very closely to provide high quality services to Chinese travellers and loyalty members of the two groups.”

The joint venture is developing 2 NH branded hotels to open in the second half year of 2016 in Sanya and Haikou in China’s Hainan Province.

The NH Sanya Phoenix International Airport will have 334 rooms, while the NH Haikou Meilan international Airport will have 1,001 rooms making it the largest NH Hotel in the world.

The joint venture is also expecting to grow its portfolio under management to ten to 20 hotels by the end of the year.

It is already pursuing opportunities in Beijing, Shanghai, Hangzhou and exploring potential in key tier two and three cities in China.

The receptiveness to NH Hotels and NH Collection brands has been very strong.

Federico González Tejera, chief executive, 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 Chinese 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 selection of the Chinese brand name “Nuo Han” was the result of extensive research and internal discussions.

The character “Nuo” represents NH Hotel Group´s promise to meet the expectations of their guests with sincerity and emotion conveying a sense of Hotels with Heart.

The character “Han” represents flying higher and a brilliant future whether guests are traveling on business or leisure.

This is aligned to NH Hotel Groups operational promise to place customer satisfaction as its highest priority.