The Hotel Times - June 2008 - (Page 18) FRANCHISE UPDATE Franchises without borders Rezidor Hotel Group is experiencing a robust international pipeline. Its portfolio includes the Radisson SAS in Malta. tels Corp. The most prolific example of franchising in the European markets is most likely the United Kingdom, Fitzgibbon said. First push: Europe The wider European market is embracing the franchise business model now, with particularly strong penetration in France, Fitzgibbon said. Hilton has been actively pushing franchising in Europe for more than two years. ª Much of our franchising activity is focused around our new brands that have been traditionally very successful in the United States,º Fitzgibbon said. The company has introduced the Hilton Garden Inn, Hampton and Doubletree brands to certain strategic markets in the UK, Germany, Italy, Spain, Portugal and Russia. ª Part of our strategy has been to grow effectively by finding local partners and that' s where the franchise business model really comes into its own because it allows local owners to develop a hotel they can own and run, facilitated by our brands,º Fitzgibbon said. Of the 322 hotels in The Rezidor Hotel Group, 19 percent are franchised, 26 percent are leased and 55 percent are managed. Puneet Chhatwal, senior v.p. and chief development officer, said it' s becoming increasingly more common to have an owner, an operator and a franchise from a significant player. ª Some of the owners in this part of the REZIDOR HOTEL GROUP BY S H A R O N A N N E WA L D R O P C O N T R I B U T I N G E D I TO R W All 252 guestrooms at Rezidor Hotel Group' s Radisson SAS, Malta, have a balcony or terrace. 18 The Hotel Times June 2008 ell-established brands attract both domestic and international travelers from all segments. This benefit, along with lower insurance, telecommunications, and procurement costs, can make a franchising agreement attractive. It' s no wonder the vast franchise trend in the United States is going global, experts say. The franchising business model is emerging in new markets, according to Patrick Fitzgibbon, senior v.p. development, Europe and Africa, for Hilton Ho- www.TheHotelTimes.com http://www.TheHotelTimes.com
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