Jarvis tems up with Dutch group

By Gaby Huddart

Jarvis Hotels has become the latest UK chain to seek a foreign partner to increase its overseas marketing thrust and boost business.

Under the terms of the deal, Jarvis has formed a "strategic alliance" with the Netherlands-based Golden Tulip hotel consortium, whereby each gives the other access to its reservation system.

"This is a sales and marketing agreement between our two distribution networks. We get access to Golden Tulip's European and worldwide networks and they get access to our UK hotels," John Jarvis, chairman and chief executive of Jarvis Hotels, told Caterer.

"This type of deal started in the airline industry - it is certainly working well there and increasing business for the airlines, and it is moving into our sector now. I think our agreement will be followed by others in the hotel industry," he added.

Mr Jarvis said the agreement was sealed following six months of talks between the two companies. "I was attracted to Golden Tulip because it is very good in its sector and good at what it does. They also liked our locations," said Mr Jarvis.

Though the company had set no specific targets on the amount of business it wanted to attract through the deal, it did expect a significant number of reservations to come through Golden Tulip's network, he said.

In addition, Dutch airline KLM, which is a shareholder in Golden Tulip, will now include Jarvis properties in its loyalty scheme.

Mr Jarvis also confirmed to Caterer that he was evaluating whether to separate out the Sebastian Coe Health Clubs when he floats Jarvis Hotels on the stock market next summer.

"We are exploring ways of maximising the value of the business. Looking at the pricing of the David Lloyd centres [sold to Whitbread in August] it is sensible for us to consider this," he said.

The health clubs would remain under the same management and the brand would be unchanged but a separate flotation would mean the health club business could grow in its own right, he said.