In order to develop a portfolio of 15 Holiday Inn Express hotels across Australia, Pro Invest Group has established a USD 150-million fund. The investment company has created a property development and hotel operating company to build and operate the properties, totalling approximately 2,100 rooms, in central business, suburban and airport locations in Sydney, Melbourne, Perth and Brisbane. InterContinental Hotel Group (IHG) will enter into franchise agreements for each of the hotels under a multiple development agreement signed between the two companies.
“The announcement of this investment fund comes at a great time for IHG in Australia. Our current hotel brands here, InterContinental, Crowne Plaza and Holiday Inn, are already well-known and regarded by our hotel owners, and Holiday Inn Express is a welcome addition. We have established a strong hotel franchising model to provide owners and investors in Australia, such as Pro Invest, with a reliable and profitable alternative to our equally-successful management model. This is an exciting example of the growth and development of IHG in this market, and a strong sign of confidence in IHG’s offering.”