September 19, 2011 · 0 Comments
ARLINGTON, Va., Sep 19, 2011 (www.hospitalitybusinessnews.com) — Interstate Hotels & Resorts, has entered into a joint venture with TVHG Budget Group Beheer BV to invest in a portfolio of nine hotels located across the Netherlands.
The nine hotels include the recently opened the 112-room Holiday Inn Express Schiphol Airport in Amsterdam and the remaining eight are anticipated to be open by the end of 2012. All of the hotels will be Holiday Inns, Holiday Inn Express or Hampton Inns and will comprise around 1,800 rooms, and will be managed under long-term contracts by Interstate.
“This joint venture marks our entry into the Netherlands and significantly increases our European presence to more than 25 hotels open or in the pipeline,” said Thomas F. Hewitt, Interstate’s chairman and chief executive officer. “This new alliance illustrates our commitment to aggressive growth in Europe. We have the infrastructure and an experienced management team in place to oversee our growing portfolio there.”
“TVHG is an experienced, highly regarded hotel developer with an impressive record of hotel development and transactions in the Netherlands and elsewhere,” said Jim Abrahamson, Interstate’s president and COO. “For the past few years, they have focused on taking advantage of opportunities in the real estate sector by identifying well located, vacant office buildings that represent attractive hotel conversion opportunities to internationally recognized brands. Nine of those hotels form the basis of this partnership, and the addition of Interstate’s established management platform to this unique joint venture will help fulfill the promise of that plan.” Abrahamson noted the strength of Interstate’s international platform comes from the company’s long and positive relationships with top-quality brands. “This is our first deal with TVHG and we look forward to building on our relationship as we expand in Europe.”
“Interstate has pioneered the concept of independent hotel management in some of the world’s fastest growing economies and has successfully transplanted that business model to Europe,” said Bart van de Kamp, founder and CEO of TVHG. “The capabilities they bring, combined with their long, strong track record of superior performance, give us a high degree of confidence in their ability to operate these hotels to their full potential and maximize our returns. With Interstate’s platform and their relationships with top tier brands, we hope to continue our partnership beyond this initial phase in the Netherlands into other markets.”
Several hotels will be located in the Amsterdam area and others in major cities in the Netherlands. All of the hotels will be situated close to railway stations, airports or along main highways.
“This transaction marks our renewed emphasis on establishing a major presence in Europe. We are dedicated to both investment and management in key markets throughout Europe,” said Leslie Ng, Interstate’s chief investment officer. “With the addition of these nine hotels, we have significantly expanded our footprint in Western Europe and are rapidly moving our international growth strategy forward. Our global pipeline remains active, and we continue to explore additional opportunities worldwide. We look forward to growing our presence with TVHG as a partner.”