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New Midmarket Brand for China by Cachet
Cachet Hotel Group announced the launch of a new brand developed exclusively for China. The brand is called Savant hotel by Cachet and is developed by the hotelier together with Qingdao Izunco Investment Group Co. The new brand will belong to the midmarket segment, and the companies expect to open no less than 20 Savant hotels in Shandong Province within just 3 years. In future, Cachet plans to expand the new brand’s portfolio to 200 hotels across China. These will be both managed and franchised hotels in tier 1, tier 2 & 3 cities of the country.
Savant hotels will join Cachet World technology platform and will feature different locations in city, suburbs and airports. Currently, there is growing demand for midscale hotels in China due to growth of domestic travel that add to steady demand from business and governmental travelers. The burgeoning middle class seeks modern design at an affordable price, and that is what Savant hotels will be focused on.
Midscale segment is the largest hotel segment in China with 2015 revenues reaching tremendous US$36.3 billion. The segment also features the fastest annual growth of 12.5% in just four years. The trend is expected to continue in future, and the majority of new hotels are most likely to appear in tier 2 and 3 cities.
Savant hotels will offer stylish and affordable rooms for tech-savvy travelers. Following Cachet’s global policy, Savant hotels will be carbon neutral. New hotels will be made from premade modules that only need to be assembled on the site and furnished. Such approach helps reducing construction time and cost by half. A typical Savant hotel will have around 100 guestrooms with average cost per room of US$12,237. The new hotels will feature simple check-in and check-out, booking and payments through WeChat, fast Wi-Fi, fitness center, lounge zone and bar.
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