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Dubai: InterContinental Hotels Group (IHG) has signed an exclusive franchise development agreement with Siraj Capital Ltd to roll out 12 Holiday Inn Express hotels within five years.
The agreement was signed at the Jeddah office of Siraj Capital Ltd by John Bamsey, chief operating officer, InterContinental Hotels Group, Middle East and Africa and Ebrahim Mardam-Bey, chief executive of Siraj Capital Ltd.
The Saudi Arabian deal follows the official opening of the Dubai Internet City property in November. IHG is opening on average two Holiday Inn Express hotels every week around the world.
Asset ownership
Siraj Capital Ltd is acting on behalf of Rahala LLC, a Saudi Arabian limited liability company, under formation, which will be the asset owner of Holiday Inn Express in Saudi Arabia. The deal was brokered by Hospitality Management Services (HMS), which will operate the individual properties.
Bamsey said: "The rapid global expansion of the Holiday Inn Express brand will now be reflected in Saudi Arabia thanks to the robust agreement we have signed with our partners Siraj Capital Ltd and Hospitality Management Services. We are currently witnessing a growing demand for limited service hotels in the kingdom where budget-conscious travellers seeking satisfactory levels of amenities and service currently turn to more expensive accommodation options.
"With Holiday Inn Express, we will address this issue by offering competitive pricing, quality accommodation and the assurance that an international brand brings. All hotels will provide the essentials such as a complimentary breakfast, a power shower, workstations and a great night's sleep," added Bamsey. "It is an ideal time to be investing in the burgeoning Saudi Arabian market, where the tourism sector is expected to grow by 12.6 per cent in 2007 and by 6.1 per cent per year between 2008 and 2017."
In October 2007, IHG announced a worldwide re-launch of the Holiday Inn brand family, which comprises Holiday Inn, Express by Holiday Inn and Holiday Inn Express. All Holiday Inn hotels are required to implement the relaunch programme to create a more contemporary brand image.
Profile: Brand growing rapidly
Developed by InterContinental Hotels Group, Holiday Inn Express is the world's largest limited service brand and is growing rapidly.
Globally, there are more than 1,700 Express by Holiday Inn properties with over 150,000 rooms offering comfort, value and convenience to international business and leisure travellers.
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