Company Press Release: Bass Hotels & Resorts
May 31, 2000
ATLANTA, GA -- Bass Hotels & Resorts (NYSE: BAS; London) and Dorint Hotels & Resorts -- two of the most
powerful players in the German hotel market -- have entered into an historic agreement to form a joint venture
to develop and jointly manage certain Inter-Continental and top-ranked Dorint hotels in selected cities in Germany.
The parties will be equal partners in the joint venture, which will pair an Inter-Continental hotel with a Dorint
hotel in various cities. This will allow both brands to retain their individual identities, while sharing management
staff and expertise.
Commenting on the joint venture, David Bland, managing director of Bass Hotels & Resorts, Europe, Middle East
and Africa said: ``This joint venture will enable Inter-Continental Hotels and Resorts to grow faster in the German
market and allow both parties to make substantial savings through operational synergies.''
``Germany has always been an important market for Inter-Continental Hotels and Resorts and this agreement will
enable us to reinforce our position in the market as the leading upscale brand, as well as benefiting from Dorint's
local expertise.''
Alfred Weiss, president and COO, Dorint Hotels & Resorts added: ``As Germany's leading hotel group we aim through
this international partnership, to further strengthen our position in the four-star and particularly five-star
segments. One of the key benefits of this alliance is that guests will continue to experience the unique atmospheres
of the individual properties, whilst at an operational level both groups will benefit from maximising their combined
strengths.''
The first hotels to be included in the joint venture will be the Hotel Inter-Continental Berlin, which is currently
undergoing a DM 102 million refurbishment of its 510 rooms, and the newly constructed Dorint Schweizerhof Berlin
that was opened across the road in August last year. From this summer, the two hotels will be operated as one unit,
but still under their respective brand names and own standards. Sales, reservation systems and marketing will remain
separate, but operational synergies will be derived from combining administration, yield management, accounting,
purchasing and maintenance resources.
To follow will be Cologne, where the 260 room Stadthaus will be rebuilt and opened as an Inter-Continental in the
spring of 2002 as part of a multi- purpose development. The hotel will be managed through the joint venture and
paired with the existing, nearby Dorint Kongress Hotel (284 rooms).
These two initiatives are the first of what is hoped will be many strategic partnerships under the new joint venture.
Bass Hotels & Resorts & Dorint Hotels & Resorts are already working together to explore the other opportunities
it presents to both companies.
Notes: Bass Hotels & Resorts®, the hotel business of Bass PLC of the United Kingdom, operates or franchises
more than 2,800 hotels and 450,000 guest rooms in more than 90 countries and territories. The following are some
of the service marks owned by Bass Hotels & Resorts, Inc., its subsidiaries or affiliates: Holiday Inn®,
Crowne Plaza®, Express by Holiday Inn(SM), Holiday Inn Select®, Holiday Inn Garden Court(SM), Holiday Inn
SunSpree® Resorts, Staybridge Suites®, Holidex®, Priority Club® Worldwide, Inter- Continental®,
Forum® and Six Continents Club®. Bass Hotels & Resorts, Inc. offers information and reservations capability
on the Internet -- www.basshotels.com , www.interconti.com
for Inter-Continental Hotels and Resorts, www.crowneplaza.com for Crowne
Plaza Hotels and Resorts, www.holiday-inn.com for Holiday Inn hotels,
www.hiexpress.com for Express by Holiday Inn hotels, and www.staybridge.com
for Staybridge Suites by Holiday Inn.
Inter-Continental Hotels and Resorts first entered the German hotel market in 1963 and currently operates 5 properties
in Germany in Berlin, Frankfurt, Leipzig, Stuttgart and Hamburg.
Dorint Hotels & Resorts, founded in 1959, is German's leading hotel group. At present, it comprises 83 properties,
with altogether 25,000 beds in ten European countries and in North Africa/Morocco. Ten more hotels are at the design
stage, 14 hotels are under construction.
Total revenue of Dorint will come close to DM 900 million in 2000 with roughly 6,000 employees. Dorint operates
hotels under one brand name with respective classification in five-star hotels in the luxury segment, four- star-hotels
in the first class segment and three-star-hotels in the budget segment.
Reservations and further information can be obtained under the Dorint chain code DO, as well as on the internet
-- www.dorint.de .
SOURCE: Bass Hotels & Resorts