InterContinental Hotels Group (IHG) has signed a franchise multiple development agreement with Regional Hotel Chain, a portfolio company of VIY Management, to develop 15 Holiday Inn Express hotels in Russia by 2019.
The agreement will introduce the Holiday Inn Express brand to the country, adding around 2,250 rooms to IHG’s current Russia development pipeline.
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 has previously announced plans to have 100 hotels across Russia. The group has 13 hotels, providing 3,894 rooms, open in Russia, with another five hotels, providing 1,773 rooms, in the pipeline that will open in the next three to five years.
Robert Shepherd, IHG’s chief development officer, Europe, said: “Russia is a priority market for IHG in Europe. It is underdeveloped in terms of branded hotel rooms, but is also 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 be important not only for meeting 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.”
Andrey Yakunin, VIYM’s co-founding partner and chairman of RHC board, added: “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.”
