How does the new brand UrCove leverage the mid-to-high-end business travel market?

In 2020, the hospitality industry is facing dramatic changes. On the one hand, the global hotel industry has suffered heavy losses and struggled to survive under the impact of the epidemic; on the other hand, the unprecedented crisis has also created the opportunity to overtake the hotel industry, and it is the common choice of the hotel giants to respond positively and expand properly.

Hilton joined hands with Country Garden to introduce the Homewood hotel brand in China; InterContinental Yiheng and voco have also entered China one after another; Hyatt and BTG Homeinns jointly launched the mid-to-high-end hotel brand Yifei… It can be seen that international hotel groups remain enthusiastic about the Chinese hotel market Unabated, especially in the mid-to-high-end hotel market, there is a strong tendency to meet each other.

Among the many new brands, the double halo of Hyatt and BTG Home Inns is not unglamorous. At the end of February this year, Hyatt Hotels Group and BTG Homeinns Group established a joint venture company and officially announced the launch of a new hotel brand “UrCove by HYATT” in June. The brand will be based on the Chinese market and position mid-to-high-end business travel hotels.

Ms. Zhang Shujuan, Executive Senior Vice President of BTG Homeinns, Mr. Yan Qingguang, Senior Vice President of Development and Owner Relations of Hyatt Hotels Group in Asia Pacific, and Mr. Sun Wu, CEO and Managing Director of UrCove

On August 13, the global booking launch and signing ceremony of UrCove was held in Shanghai. The UrCove brand was officially launched on the online wall in the Shuang Group, further demonstrating the value connotation of this new brand to the industry and accelerating the brand launch. Its first store-Shanghai Jingan UrCove will also open soon to welcome guests.

The world’s first UrCove-Shanghai Jing’an UrCove

Chapter 1 Taking advantage of the best and complementary resources, Hyatt and BTG Homeinns jointly build a new brand

As a full-fledged Chinese and Western hybrid brand, YiFu was co-founded by the international hotel giant Hyatt and the domestic hotel giant BTG Homeinn. Under the dual brand endorsement, UrCove fully absorbed the dominant genes of both parties, showing a brand effect of 1+1>2. Specifically, UrCove will inherit Hyatt’s professional experience in high-end hotels, international quality, as well as BTG Homeinn’s deep insight into the Chinese market, a large membership network, and landing efficiency, providing high-end business travelers with efficiency and comfort. The accommodation experience.

It is worth mentioning that both Hyatt and BTG Homeinns have injected capital into the establishment of the UrCove brand. This is the biggest difference between it and other international brands. In addition, UrCove Hotel opened up the membership system of Hyatt and BTG Homeinns Group to open dual-channel reservations before the opening date, which also set a new record for cooperation between international hotel groups and domestic hotel groups. In the future, members of Shuang Group can choose any member account to accumulate points and enjoy the privileges of Hyatt Group’s “World of Hyatt” frequent flyer program or BTG Home Inns “Family Guest Club”.

In fact, there are precedents for Chinese and foreign hotel groups to establish joint venture brands in China. Marriott Group and Dongcheng International have jointly launched the Wanfeng brand to develop the mid-to-high-end hotel market. Unlike Wanfeng’s franchise model, UrCove will adopt a development model of direct operation first and point-to-round. This model will be more conducive to controlling hotel service quality and depositing operating standards and systems.

Chapter 2 Insight into the core needs of consumer groups, UrCove interprets new business travel hotels

Thanks to the growth of the middle class in recent years and the overall upgrade of the domestic consumption environment, mid-to-high-end business travel hotels have become a battleground in the hotel market, and many players have entered the market. UrCove, which is entering the market with a brand new brand and high profile, will inevitably need to carefully insight into the core needs of young business travelers, give full play to its advantages in products and services, and form differentiated competitiveness. The younger generation of business travelers focus on consumer experience, convenience and quality are indispensable. Therefore, the safe environment and quality service are the core highlights of UrCove’s breakthrough.

From the perspective of brand connotation, the meaning of “UrCove” is to create a homely comfort and provide a warm and peaceful place for business travelers on the journey. The English name UrCove (your cove) is also based on the same concept, providing a safe harbor for ships on the voyage.

In terms of design, UrCove Hotel will continue the style of Hyatt’s hotels, using low-key, harmonious and textured materials and colors to create an atmospheric and comfortable atmosphere. The lobby is equipped with a multi-functional service island, free to switch between social and business needs, and the light food bar can provide coffee, light food, craft beer and other fine dining at any time. The guest rooms are equipped with smart homes, movable furniture, and high-quality bedding, bringing an extraordinary experience, backed by Hyatt’s consistent excellent service and caring.

Rendering of UrCove Public Area

UrCove Guest Room Effect Picture

Continuing the catering standard of Hyatt hotels, catering services will also become one of the special services of UrCove. It not only provides full-time catering services, but also uses French Bordeaux AOP grade wine as shop wine to increase hotel non-room income.

In terms of products and operations, UrCove needs to digest and integrate the excellent genes of Hyatt and BTG Homeinns to form its own system standards. It will take time.

Chapter 3 The mid-to-high-end hotel market has huge potential, and the launch of new brands is just right

The market will not stay the same before the time is focused.

Statistics show that China’s middle class is expected to reach 440 million people in 2020. Huge market crowd, constantly updated consumer demand… The changes in the hotel market are an indisputable fact. In fact, many hotel brands have realized that the original brands and products cannot cater to the needs of the new era. Therefore, both the overall structure and product creation are innovating, and brand upgrade and iteration is an important form of expression.

On the other hand, general trends such as the overall increase in property rents and consumption upgrades on the consumer side are also calling for new hotel brands, especially the birth of mid-to-high-end brands, in order to seek more market-oriented products and brand premiums. For powerful hotel groups, the hotel market after the epidemic is facing a reshuffle, which is an excellent time to invest.

From the perspective of market consumption mentality, under the influence of factors such as the epidemic, consumers of all ages are more willing to accept new things than before and are willing to pay for endorsed, high-quality products. Brands and products that understand consumers and understand the market will usher in spring.

Among the more than 300,000 mid-to-high-end hotels in the domestic market, the degree of chaining is less than 14%, and most high-star hotels have the problem of low asset operation efficiency, which creates problems for new mid-to-high-end local brands such as UrCove And opportunity. Born under this background, UrCove was placed high hopes. Sun Jian, general manager of BTG Homeinn Hotel Group and chairman and CEO of Homeinn Hotel Group, said that “UrCove” is committed to “advancing towards the goal of setting a new benchmark for local hotels.” Hyatt will also strengthen its presence in the mid-to-high-end hotel market with the help of UrCove’s launch.

It is reported that UrCove plans to open more than 300 hotels within 5 years. Judging from the signed projects and letters of intent, it will cover more than ten first-tier and new first-tier cities and tourist destinations across the country. In addition to the Shanghai project that is about to open, Chengdu and Nanjing are under construction, Beijing, Shenzhen, Nyingchi of Tibet, Yan’an, Weifang, Shandong and other cities have signed contracts, and the scale has exceeded 10. In accordance with UrCove’s development strategy of “direct operation first, with point-to-face” development strategy, the national layout is just around the corner.