InterContinental Hotel Group Signs Multiple Development Agreement to Develop 15 New Hotels in Russia By 2019
InterContinental Hotel Group has signed a franchise multiple development agreement (MDA) with Regional Hotel Chain, a portfolio company of VIY Management (VIYM).
The agreement will see 15 new hotels developed 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 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 across 5 hotels.
The news comes just 10 days after IHG announced double-digit profit growth in its 2012 financial results, which saw the opening of 226 new hotels across the globe and an 8% increase it its European revenue.
IHG have invested growth into the Russia market, and have previously announced plans to have 100 hotels across Russia and the CIS open in the pipeline by 2020. 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.
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 centers and new fast-growing cities with well-established business communities and tourist attractions.
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