Intercontinental, Grand Call Off Franchisee Deal

Economic Times:

Intercontinental Hotel Group (IHG) and Lalit Suri’s Grand Group (Bharat Hotels) have called off the decade-old franchisee agreement.

Under the present franchisee contract, the Grand Group paid IHG a fee for using the ‘Intercontinental’ brand for its four properties in Delhi, Bangalore, Goa and Mumbai.

IHG had no role in the operations of the hotels. On Wednesday, IHG announced that it will now focus on growing through management control of hotels in India. It is now looking to add 20 new hotels in the next 2-3 years, which will be managed by the hotel chain itself.

These would be under three brands—Intercontinental, Crowne Plaza and Holiday Inn.