Berlin (ots/PRNewswire) -
Holiday Inn Express enters Russia for the first time
IHG (InterContinental Hotels Group), one of the world's leading
global hotel companies, has signed a franchise multiple development
agreement (MDA) with Regional Hotel Chain, a portfolio company of VIY
Management (VIYM) to develop 15 new hotels in Russia by 2019, which,
when open, will double the size of IHG's estate there as it stands
today, and will introduce the Holiday Inn Express brand to the region
for the first time.
The 15 new Holiday Inn Express hotels will add approximately 2,250
rooms, when signed, to IHG's current Russia development pipeline of
over 1,700 rooms (5 hotels).
The locations for the first two of these hotels are Chelyabinsk and
Voronezh. Holiday Inn Express Voronezh - Kirova is due to open in the
second half of 2014 and
Holiday Inn Express Chelyabinsk - Central Station, is scheduled to
open in summer 2015.
IHG's chief executive officer, Europe, Angela Brav said: "This is a
breakthrough for IHG in Russia. It marks the debut of the Holiday Inn
Express brand there and, when the hotels open we will have doubled
the size of our system as it stands in Russia today, making a
significant step towards our ambition to be market leaders."
IHG's chief development officer, Europe, Robert Shepherd said:
"Russia is a priority market for IHG in Europe. It is underdeveloped
in terms of branded hotel rooms, one of the most prosperous economies
in Europe and is a growing market for business travel both
internationally and between its many large cities. As Russia grows in
economic importance, the introduction of the Holiday Inn Express
brand will not only be important to meet local mid-scale demand
in-country, where we know there is a significant supply gap, but also
as part of a future strategy to capture inbound demand as a brand of
choice. We're pleased to partner with VIYM, one of the most
recognised hotel investment managers in the industry in Russia, and
look forward to working with them as we expand. "
VIYM's Co-founding Partner and Chairman of RHC Board, Andrey Yakunin
remarked: "We are pleased to announce our second joint initiative
with IHG on the Russian market and promote such a large-scale
opportunity on its regional level. Our strong belief is in the high
growth potential of the lower midmarket offering supported by
international expertise, resource and efficiency, which can be
embodied by the introduction of the Holiday Inn Express brand for
business and leisure travellers across the country. The current
operational results of RHC hotels and the demand, which we see in the
regions, only prove our expectations."
The Holiday Inn Express brand is designed to be the smart choice for
value-conscious business and leisure travellers. Fresh, clean and
uncomplicated, Holiday Inn Express is a great hotel choice for guests
on the go. It offers guests exactly what they need - a great night's
sleep in a high quality hotel and a free breakfast. There are
currently more than 2,000 Holiday Inn Express hotels around the
globe.
IHG has made no secret of its commitment to growth in Russia, and has
previously announced plans to have 100 hotels across Russia and the
remainder of the CIS open and in the pipeline by 2020. The company
said it would work with local investors to introduce managed and
franchised hotels across the country, where there is a need for
internationally branded hotels. Its expansion will be driven by
growth in regional centres and new fast-growing cities with
well-established business communities and tourist attractions.
IHG has 13 hotels (3,894 rooms) open in Russia, with another 5 hotels
(1,773 rooms) in the pipeline that will open in the next 3 to 5
years.
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