Holiday Inn questions Garden Court concept
HOLIDAY Inn Worldwide is reviewing the future of the mid-range Garden Court concept, following its decision to introduce the budget Holiday Inn Express brand in Europe.
Chairman and chief executive officer Bryan Langton last week announced plans to open at least 100 Holiday Inn Express properties in the Europe, Middle East and Africa (EMEA) region over the next five years.
As a result the company is undertaking a review of Holiday Inn Garden Court's future, though a spokeswoman this week emphasised that no decisions had yet been taken.
Garden Court was introduced in 1989 as a mid-market brand for the European and African markets, and to date 52 properties have opened, six of them in the UK.
Holiday Inn Express, conversely, was previously considered unsuitable for the European market - an opinion that has clearly changed as budget brands such as Travelodge, Travel Inn, Ibis and Campanile have mushroomed.
The Express brand was introduced in the USA in 1990, and there are now more than 150 in the Americas region. In Asia-Pacific, Holiday Inn recently signed an agreement for the development of 70 in India over the next 10 years and 30 in Indonesia within seven years.
Its strategy in Europe will be to grow by franchising the concept both to developers and existing chains, and agreements have already been signed to open 20, mainly in roadside or secondary sites near main cities.
The standard size of hotel will be 50-100 bedrooms, and the tariff will be $45-$55 (ú30-ú37) per room per night, depending on location, including breakfast. According to local needs, some may have a limited restaurant operation.
Mr Langton said the key target markets for the brand would be Germany, central Europe, Spain, France and the UK.
The first Holiday Inn Express, which is scheduled to open next spring, is being built in Cottbus, Germany, in a joint venture with a local property developer, and a further four are under discussion.
In Poland, the company has signed an exclusive agreement with a US company called Capital Acquisitions for 20 new-build Express hotels over the next five years, with the first opening in 14 months' time.
Capital also has franchise or development rights for Burger King and Domino's Pizza in Poland, though it is not clear at this stage whether it plans to use its hotel and restaurant brands alongside each other.
