Holiday Inns may break into N.Z.

Press, 22 June 1978, Page 3

Holiday Inns may break into N.Z.

PA Auckland Fletcher Development and Construction, Ltd, is making feasibility studies which could lead to the entry of Holiday Inns, the world’s largest hotel chain, into New Zealand, Australia, and some parts of the South Pacific.

The studies are in conjunction with a Hawaiian architectural firm, Media Five. Although Fletcher’s is looking at the feasibility of the plans, and, of course, would hope to build the hotels, it is unlikely that the company will be financially involved.

The discussions with Holiday Inns were still at an early stage, said Fletcher’s general manager (development), Mr H. J. MacLeod yesterday. Asked about a Melbourne report mentioning initial

hotels in Auckland, Wellington, and Taupo, he said it was too early yet to name sites.

“If our discussions have a satisfactory conclusion, we will first of all be looking at major cities in Australia and New Zealand in our feasibility studies,” he said. “Depending on the results, we would recommend whether a hotel would be built in a certain locality.” The question of franchise still had to he resolved. “If everything came together properly, we could be looking at a long-term building programme of luxury hotels of the 200-room to 500-room class,” Mr MacLeod said. The United States-based Holiday Inns controls 1700 hotels with 278,957 rooms in 51 countries, of which 186 units with 14 per cent of the

b.ds were outside the United States in 1977.

The group plans to add at least 35,000 rooms in the United States in the next five years, at a cost of S7OOM Its international development strategy is to build strong national chains in various countries. For example, it has five hotels in London. The international expansion is planned to continue mainly through licence agreements and management contracts.

Holiday Inns also runs Trailways, the second largest bus company in the United States, and Delta Steamship Lines, a major United States carrier.

The group turnover last year, its twenty-fifth, was $1 billion. Net income $52.6M.