Cachet Hotel Group (CHG) announced today the signing of an exclusive development agreement in Shandong Province with Qingdao Izunco Inn Investment Company (Izunco), one of the fastest growing hotel property and management companies in China. The main objective of the partnership is to launch SAVANT Hotel by Cachet, a midscale lifestyle brand, in Mainland China. The development of SAVANT Hotel by Cachet marks a substantial milestone in CHG’s expansion across China and promises to complement a geographically diversified portfolio simply by entering new markets in the world’s second largest economy.
“Our company is witnessing a fundamental change in Chinese property as developers would like to build boutique and midscale hotels that will address the growing need for an increased quality of domestic tourism. Additionally, an increasing number of discerning but cost-conscious business and government travelers can provide a steady stream of consumers for midscale lifestyle hotels focused on tier 2 and tier 3 cities across China,” commented Alex Mirza, President and CEO of Cachet Hotel Group. “The emerging midscale lifestyle segment is poised to capture spending from your burgeoning middle-class who are trying to find modern design and at reasonable prices.”
The targeted midscale segment is the largest hotel segment in China along with us$36.3 billion total room revenues in 2015 and it has seen the easiest growth with compounded annual growth of 12.5% in the last 4 years. This trend is estimated to carry on in the future, with the most significant growth areas likely in tier 2 and tier 3 cities.
SAVANT is defined as an individual of profound or extensive knowledge, a professional or possibly a genius. As the latest accessory for Cachet’s portfolio, SAVANT is positioned to provide travelers who are looking for uncomplicated, dugwzu and intuitive experiences. SAVANT will offer guests an appropriate and tech-savvy space that is both stylish and affordable.
The Newest York property follows the successful opening of countless hotels in Asia and Mexico. “Our global portfolio consistently expand with additional openings in North America and Asia planned throughout 2018,” stated Robert Roche, Chairman of Cachet Hospitality Group. “Our company is pumped up about our entry in to the U.S. market with the newest property in The Big Apple.”
Drawing on CHG’s legacy and knowledge of environmental sustainability in China, SAVANT by CACHET will be carbon neutral. The rooms will be prefabricated, with modules assembled off-site and delivered filled with carpeting, lighting as well as showers, reducing construction and labor resources by 50 plusPercent.