Cachet Hotel Group (CHG) announced today the signing of an exclusive development agreement in Shandong Province with Qingdao Izunco Inn Investment Company (Izunco), among the fastest growing hotel real estate property and management companies in China. The primary objective of the partnership is to launch SAVANT Hotel by Cachet, a midscale lifestyle brand, in Mainland China. The creation of SAVANT Hotel by Cachet marks an important milestone in CHG’s expansion across China and offers to complement a geographically diversified portfolio simply by entering new markets in the world’s second largest economy.
“We have been witnessing a fundamental shift in Chinese real estate as developers want to build boutique and midscale hotels that will address the growing demand for a higher quality of domestic tourism. Furthermore, a growing number of discerning but cost-conscious business and government travelers will provide a steady flow of consumers for midscale lifestyle hotels dedicated to tier 2 and tier 3 cities across China,” commented Alexander Mirza, President and CEO of Cachet Hotel Group. “The emerging midscale lifestyle segment is poised to capture spending from the burgeoning middle class who are looking for modern design and at a reasonable cost.”
The targeted midscale segment is the largest hotel segment in China with US$36.3 billion total room revenues in 2015 and it has seen the quickest 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 important growth areas likely in tier 2 and tier 3 cities.
SAVANT is defined as a person of profound or extensive knowledge, a professional or possibly a genius. Because the latest accessory for Cachet’s portfolio, SAVANT is positioned to offer travelers who are looking for uncomplicated, dugwzu and intuitive experiences. SAVANT will provide guests a comfortable and tech-savvy space that is both stylish and affordable.
The Newest York property follows the successful opening of several hotels in Asia and Mexico. “Our global portfolio continues to expand with a lot more openings in The United States and Asia planned throughout 2018,” stated Robert Roche, Chairman of Cachet Hospitality Group. “Our company is pumped up about our entry to the U.S. market with our newest property in New York City.”
Drawing on CHG’s legacy and expertise in environmental sustainability in China, SAVANT by CACHET will be carbon neutral. The rooms will likely be prefabricated, with modules assembled off-site and delivered filled with carpeting, lighting as well as showers, reducing construction and labor resources by over 50%.