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Cendant secure Russian deal
US-based Cendant Hotel Group is looking to introduce its Days Inn brand in 15 countries across the former Soviet Union.
Cendant has agreed a franchising deal with Moscow-based Hermitage Hospitality which will see the brand expand to Russia, Estonia, Latvia and Lithuania as well as the 11 countries which make up the Commonwealth of Independent States (CIS) – Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine and Uzbekistan.
The master license agreement could see around 50 Days Inn hotels being developed over the next five years.
Cendant believes the lack of quality budget and mid-scale hotels in the region presents an opportunity for franchising the brand successfully.
Michael Schiff, Cendant’s vice president of international strategy, said: “Hermitage Hospitality will focus its efforts on providing consistent, high-quality economical lodging to the emerging middle class of the former Soviet Union as well as to the growing number of businesses and leisure travellers.”
Hermitage Hospitality believes Days Inn’s reputation for providing consistent quality accommodation at economical prices will ensure the expansion offers a welcome addition to the lodging market.
John Eaton, president of Hermitage Hospitality, said: “With this deal, we have access to proven operating standards and world-class marketing and sales services.
“Coupled with our management expertise in Russia and the former Soviet nations, we are well-positioned for the rapid development of Days Inn hotels in the region.”
The agreement is the second major international initiative involving the 1,900-strong Days Inn chain within the last year. In December 2003 Cendant agreed a similar deal with Singapore-based Frontier Group to expand the brand to China.
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