Interstate Hotels & Resorts and TVHG Budget Management Group announced they will jointly invest in nine new Dutch hotels under the name Dutch Hotel Partners.
Bart van de Kamp, CEO of TVHG commented on the new partnership, "This is an important step for us. Interstate is one of the best hotel management companies in the world and their strategy is fully in line with ours. Interstate has already been managing our Holiday Inn Express hotel at Schiphol airport and we see that in the results. We are very happy."
The remaining eight hotels are in various stages of development with a 254 room Holiday Inn Express hotel at Amsterdam Sloterdijk Railway station planned to open its doors by the end of the year.
The subsequent seven hotels will all open in 2012 and 2013. Eight of the nine hotels are existing office buildings that will be converted into hotels, extracting approximately 60,000 m² of office space from the market. The Netherlands has some 18% structural vacancy in office space. Not all hotels will carry the same brand, but all will be positioned in the mid-market segment.
'With this joint venture we take our first steps on the Dutch market and we increase our presence in Europe, to over 25 hotels. Part of it is already open and a part will soon be opened," says Thomas F. Hewitt, CEO of Interstate. Interstate has completed long-term contracts for the management of their hotels, totaling 1,800 rooms.
Interstate is the largest independent hotel management company in the US, with 330 hotels and 60,000 rooms under management, 56 of which it holds a financial stake and six are wholly owned.
"Several announcements for new hotels are expected in the course of the year," says Dirk Bakker of Colliers International who advised TVHG in this transaction and contracted the nine locations for TVHG.
Source: Colliers International