Kempinski Hotels has extended its partnership with BTG Hotels (Group) Co. Ltd., deepening a joint venture that dates back more than 20 years. The move includes a multi-year investment plan aimed at expanding the luxury and lifestyle footprint of both companies across China.
The collaboration will focus on four areas: expanding Kempinski’s Chinese heritage hotel portfolio, launching a new lifestyle brand, growing the NUO and Bristoria brands and aligning both companies’ membership systems.
“We are thrilled to cement our partnership with Kempinski,” said Rick Huo, chairman of Key Co. and NUO International Hotels Management Co. Ltd. “This is a significant step in expanding our portfolio and strengthening our brand offering in China and beyond. This renewed collaboration not only demonstrates the shared commitment of both Kempinski and BTG Hotels but also paves the way for increased market share ensuring that our joint venture continues to set new benchmarks in the industry.”
The joint venture company Key Co. was established in 2001 to develop and manage Kempinski-branded hotels in China. It now operates 22 hotels. Kempinski entered China in 1992 with the opening of Kempinski Hotel Beijing Yansha Center. In 2018 both parties renewed the joint venture 33 years ahead of schedule extending the agreement for another 50 years.
“BTG and Kempinski have achieved tremendous success during the past two decades,” said Madame Li, chairlady of BTG Hotels. “China’s role on the travel and tourism stage has undergone a major shift in the last quarter century and Kempinski has been a part of that journey since day one. We look forward to further strengthening the long-term strategy in the region leveraging the hospitality expertise of Kempinski and together continuing to be a driving force in the development of China’s hospitality landscape.”
Barbara Muckermann, CEO of Kempinski Group, said the new agreement represents the next step in a long-standing collaboration.
“Kempinski and BTG enjoy a strong partnership and rich history together as pioneers in luxury hospitality in China,” she said. “We are very fortunate to have BTG Hotels, the third largest hotel group in the country as our partner. Our collaboration offers us a unique advantage to continue aggressively expanding in the region. I look forward to the next phase of the collaboration to reinforce our position into the future.”
As part of the growth plan Kempinski and BTG will launch a new lifestyle brand focused on domestic Chinese travelers with a target of 200 hotels within five years. The brand will focus on curated rooms, services and experiences tailored to local tastes.
The companies also intend to grow Kempinski’s portfolio of Chinese heritage hotels offering domestic and international travelers localized luxury. The Bristoria and NUO brands will continue to be developed under shared management. Membership system integration is planned to improve loyalty offerings across both groups.
The strategy comes as part of Kempinski Group’s global effort to regain market leadership which includes a wide-ranging investment plan and repositioning of its brand portfolio.
