Rejig looms for hotels

By KARYN SCHERER

Two of the world's largest hotel brands, Holiday Inn and Inter-Continental, could be introduced to New Zealand after sale of the country's second-largest hotel operator to Bass.

The giant British-based hotel and brewing company is expected to announce within the next few days a deal with the Southern Pacific Hotel Corporation under which Bass will take over 61 hotels in Australia and New Zealand.

Bloomberg reported yesterday that the deal was expected to include 32 four-star Parkroyals, 22 Centras and seven unbranded inns.

Fourteen Travelodge hotels would remain under the ownership of the Chicago-based Pritzker family.

Bass already owns several hotels in Australia under the Holiday Inn, Crowne Plaza and Inter-Continental brands, but does not own any hotels in New Zealand.

Ernst & Young principal Stephen Hamilton said the tourism industry was keen to find out the company's plans, and whether it was likely to rebrand any hotels here.

While Parkroyal and Centra were well-known brands in this part of the world, they were not well-known in the United States, Britain or Asia.

With the trend towards global brands, it was possible some changes would be made.

"SPHC has a very strong New Zealand and Australian corporate client base, which is an important part of their business. It may well be that part of the client base wouldn't see a substantial problem in moving to an international brand."

Holiday Inn was last in New Zealand about 10 years ago, in Queenstown.

Mr Hamilton said the chain had since been considering other projects in New Zealand.

"Obviously this gives them the opportunity to bring that brand, which is a more international brand, to New Zealand ... One possibility is that the company simply wipes out the existing brands, but it's just pure speculation at this stage."

Melinda McKay, senior vice-president of Jones Lang Lasalle Hotels in Sydney, said the purchase was likely to bring more globalisation of reservation systems and loyalty programmes.

"Bass have traditionally been quite an aggressive player but I don't know if that will translate into further developments and acquisitions."