Holiday Inn Franchise Deal With Eih Nixed

MUMBAI, INDIA (Wednesday, May 10, 2006) - A more-than-two-decades-old relationship in the Indian hospitality industry has come to an end. The franchise agreement between InterContinental Hotels Group (IHG) and the Mumbai-based Eastern International Hotels (EIH) for the Holiday Inn brand has been called off.

DNA Money had on April 10 reported on the possible break-up between IHG and EIH. In an official communication, EIH director Dinesh Khanna's office on Wednesday confirmed the agreement will not be renewed.

"Eastern International Hotels, the owners of Holiday Inn in Juhu, Mumbai, will not renew the franchise agreement with the UK-based global hotel chain InterContinental Hotels Group (IHG) effective May 20, 2006," the letter said.

Confirming the news from New Delhi, John Gerrard, IHG area director of sales and marketing for India, Nepal, Sri Lanka and Pakistan, said, "The agreement has officially expired."

The Holiday Inn tag will officially be removed from the Mumbai hotel from May 22, 2006.

Disclosing the reasons that led to this break-off, an industry source said the property had to be renovated considering that no major upgradation work was undertaken in the past.

"The Khannas couldn't present a timely renovation plan," said the source.

View all InterContinental Hotels Group Press Releases

This article has been read 673 times.

Printed From:
http://www.thefranchisemall.com/news/articles/15254-0.htm