IHG Signs MDA for 15 New Holiday Inn Express Hotels
BERLIN—IHG (InterContinental Hotels Group) 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. READER COMMENTS
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 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. "