SHANGHAI - Hyatt Hotels Corp and Beijing-based BTG Hotels (Group) Co Ltd announced Tuesday that affiliates of Hyatt, and Homeinns Hotel Group of BTG Hotels, had entered a strategic partnership to set up a joint venture and create a new hospitality brand.

The joint venture has a total investment of 500 million yuan ($74.8 million) and a registered capital of 180 million yuan, with Homeinns and Hyatt holding 51 percent and 49 percent stakes respectively.

The brand, to be named later, aims to meet the demand of a growing number of young travelers in the upper- and mid-scale segment in China, according to Hyatt.

"The combination of Hyatt's expertise in premium hospitality with our local insight and vast network will ensure our collaboration will create opportunities and benefits for Chinese travelers as well as the overall hospitality industry," said David Sun, chief executive officer of Homeinns Hotel Group.

"This collaboration is expected to provide Hyatt with deep China insights, build brand awareness and grow loyalty with a new set of travelers," said Stephen Ho, president for Greater China, Global Operations with Hyatt.

The joint venture is expected to unveil hotels under the new brand across cities such as Shanghai, Beijing, Guangzhou and Shenzhen in the next five years. The brand will be managed independently.

BTG Homeinns Hotels Group operates one of China's largest and fastest growing economy hotel chains, with about 3,900 hotels in more than 400 cities. It has about 600 mid-scale hotels across China.