InterContinental Hotel Group (IHG) has formed a new partnership that will lead to the roll-out of at least 15 new Holiday Inn Express hotels across Australia.
The hotel company has signed a deal with Pro Invest Group, which has established a US$150 million fund to develop a portfolio of budget hotels in the country.
The initial collection of 15 Holiday Inn Express hotels, totalling approximately 2,100 rooms, will rise in city, suburban and airport locations in Sydney, Melbourne, Perth and Brisbane. IHG will enter into franchise agreements for each of the hotels.
The first hotel will open at Macquarie Park in North Ryde, Sydney, in autumn 2014, offering 190 rooms and services such as free Wi-Fi.
“This fund is comprised of a group of offshore investors, all who see the potential of investing in both the Holiday Inn Express brand, and Australia,” revealed Ronald Barrott, principal of Pro Invest. “We believe now is the time to grow this brand in the market and travellers will certainly benefit from having one of the world’s biggest hotel brands to choose from.”
IHG’s CEO for Asia, the Middle East & Africa, Jan Smits, said the deal represented a “strong sign of confidence” in IHG.
“Our current hotel brands here, InterContinental, Crowne Plaza and Holiday Inn, are already well-known and regarded by our hotel owners, and Holiday Inn Express is a welcome addition. We announced our first signing under this brand earlier this year and that hotel will open in Perth, Western Australia in 2015. Pro Invest’s portfolio will launch with the opening of Holiday Inn Express North Ryde in autumn 2014,” Smits said.
The arrival of Holiday Inn Express in Australia comes at a time of major expansion for the brand in the Asia Pacific region. Having recently launched in Thailand and Singapore, IHG also plans to introduce Holiday Inn Express Malaysia and Indonesia in the coming months.
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