PREMIER Hotels will spend £220m on expanding its two budget franchises, Days Inn and Howard Johnson, across the UK and Europe.
The hotel group is the master franchise holder of the brands after signing an agreement with the Days Inn and Howard Johnson parent company, Cendant, a US corporation which also owns Avis Car Rental, Green Flag, timeshare group RCI and National Car Parks.
Premier is teaming up with financiers Merrill Lynch to raise the capital and plans to open Days Inns in the UK and Howard Johnsons in the UK and Europe – in major city centres as well as out-of-town sites.
The unusual move to build budget accommodation in city centres, instead of on the outskirts where they are normally located, follows the successful launch of a Holiday Inn Express in Bristol city centre.
Premier is also franchisee of the Holiday Inn Express brand which is owned by Bass Hotels and Resorts.
Days Inn and Howard Johnson hotels in the UK will be positioned in the mid-economy market with emphasis on independent business travellers and families.
Managing director of franchises Stuart Harrison said: “We want to own and operate 15 to 20 Days Inns in the UK within the next three years and we also want to support our partner franchise Welcome Break in developing up to 40 more hotels. We are also looking for more multi-franchise partners.
“With Howard Johnson, we want to develop our own city-centre sites and we plan to actively pursue appropriate partners for Europe.”