Inter-Continental Eyes International Expansion

WARSAW, POLAND AND WELLINGTON, NEW ZEALAND— Bass Hotels & Resorts’ Inter-Continental brand is increasingly focusing on strengthening its worldwide presence. Currently, a new European “flagship” hotel is under development in Warsaw, Poland and two Parkroyal-branded properties are being converted to fly the Inter-Continental flag in New Zealand. The Hotel Inter-Continental Warsaw, in particular, is of major significance to the brand as it represents the “first new capital city hotel to be added to the Inter-Continental portfolio in years,” said Michael Cooper, development director, Bass Hotels & Resorts in Eastern and Central Europe. According to Cooper, Inter-Continental is already represented in almost all of the capital cities in Europe, and the brand is currently looking for opportunities to develop hotels in the remaining cities in which it has not yet established a presence. Accordingly, the new Warsaw property represents such an opportunity. Establishing Inter-Continental’s presence in Warsaw is also important because it is the capital city of one of the largest economies of the former Communist countries of Central Europe. According to Cooper, Warsaw has been experiencing phenomenal commercial activity and growth— which is likely to continue because Poland is “probably the first of three additional countries soon to be added to the European Union.” The 406-unit hotel will be 44 stories high, making it one of the tallest buildings in Europe, and “certainly the tallest on the Warsaw skyline,” Cooper added. The property is being developed as a joint venture with Warimpex Finanz and UBM Vienna— two companies, Cooper said, Bass has worked with on other projects. It is slated to open in the third quarter of 2003. The Hotel Inter-Continental Warsaw derives its designation as the brand’s European “flagship” not only because of location, but also because of its design. Cooper described the hotel as having “ a strong visual impact” because it “has been designed to incorporate all the best elements of Inter-Continental design and thinking.” Approximately 21 of its 44 floors will feature extended-stay suites, a product which, according to Cooper, is in high demand. “Our extended-stay suites will represent Warsaw’s first long-term stay apartments. Research indicates there are a considerable number of people here, including expatriates, who would love this type of product,” said Cooper. In addition to the Inter-Continental property, Bass is also planning to add Holiday Inn, Holiday Inn Express and Crowne Plaza hotels to the market. Meanwhile, in New Zealand, the Inter-Continental brand is being introduced to the market through the conversion of two Parkroyal hotels, recently purchased by the company. The conversions of the two hotels, located in Wellington and Christchurch, respectively, are part of a plan to build recognition of the Inter-Continental brand in the booming South Pacific market. Both hotels are being upgraded to meet Inter-Continental brand standards with an infusion of around $4.2 million, according to Peter Christian, regional vp/operations for New Zealand & Fiji. “The two Parkroyal hotels will adopt the Inter-Continental flag in July, and the refurbishment program will begin in June,” added Christian. Going forward, Bass plans to invest approximately $70 million to grow the Inter-Continental brand in the South Pacific region, with additional properties planned in China, India, Malaysia, French Polynesia and New Zealand during the next two years. “Our $70 million expansion program represents the largest expansion development for any five-star hotel brand in the region,” said Richard Hartman, managing director, Bass Hotels & Resorts Asia Pacific. “Since Bass is primarily a management company in Asia Pacific, most of the new properties will be managed rather than owned, but we will not rule out other strategic investments that follow a deliberate and focused strategy to gain entry into key destinati