Formosa International Hotels Corp (FIH, 晶華酒店) yesterday reached an agreement with Ten Drum Rende Creative Park (十鼓仁糖文創園區) to build a hotel inside the complex to tap growing demand in Tainan.

The expansion came a month after Leofoo Tourism Group (六福旅遊集團) scrapped a partnership with Nan Shan Life Insurance Co (南山人壽) to build a five-star hotel in Tainan on concerns that the venture might prove unprofitable.

FIH chairman Steven Pan (潘思亮) said he is confident about the joint venture, bolstered by Ten Drum Park’s unique cultural and historical appeals.

“The more local a facility is, the more attractive it is to tourists,” Pan told reporters on the sidelines of a ground-breaking ceremony.

The property is to feature 129 guest rooms and operate under the Just Sleep (捷絲旅) brand starting in 2021, allowing the group to deepen its presence in the city. FIH already runs a hotel under the Silks Place (晶英) brand in downtown Tainan.

FIH is to invest NT$800 million (US$27.2 million) on the building that is to have eight above-ground floors and two basement floors on a 1,290 ping (4,264m2) plot, company data showed.

The hotel is to target families and independent travelers, said Pan, whose company last month allied with InterContinental Hotels Group, which is now to run all Regent properties in overseas markets, leaving FIH to focus on developing and managing properties in Taiwan.

FIH operates seven properties under the Just Sleep brand and next year plans to open its eighth outlet in New Taipei City’s Sanchong District (三重).

The creative park is to mark a milestone with the building of the hotel, Ten Drum Art Percussion Group (十鼓擊樂團) founder Hsieh Shih (謝十) said.

Located 15 minutes by car from Tainan High Speed Rail Station, the complex would allow visitors a quick escape from urban life, Hsieh said.

The park is adjacent to the Chimei Museum and has been adding sports and cultural facilities, Hsieh added.