Ramada to manage, develop European hotels with Treff

LOS ANGELES, California (Reuters) -- Ramada International Hotels said Tuesday it will co-manage and build more than 100 hotels in Europe with Treff Hotels as part of an aggressive worldwide expansion by Ramada parent Marriott International.

Under their agreement, Ramada will add its name to about 80 existing Treff hotels and resorts with more than 12,600 rooms. The two companies also expect to co-develop about 10 hotels per year over the next five years.

Terms of the agreements were not disclosed.

The partnership should help Marriott meet its overseas expansion goals, but the impact on Marriott's financial performance was less clear, said Jason Ader, an analyst at securities brokerage Bear Stearns & Co.

"Because it's a co-manage agreement, even though it's 100 hotels, you're talking less significant economic impact than you might otherwise think on their income statement," he said.

The agreements will make Bad Arolsen, Germany-based Treff the largest franchisee for Marriott International, according to the companies.

"This is a significant opportunity for growth in Europe," said Reas Kondraschow, managing director of Ramada International Hotels & Resorts. "We expect smaller chains and individual owners to join us as we expand the Ramada brand."

Under their co-branding agreement, Washington, D.C.-based Marriott International will provide worldwide sales and marketing services to the Treff Hotels. The deal is also expected to eventually include Marriott's MARSHA reservations system. The Treff properties also will introduce Ramada's guest services, which are marketed as "Everything Except Excess."

The Treff hotels will undergo an "extensive refurbishment" to bring them in line with Ramada standards, the companies said.

Starting in January, all hotels covered by the agreement will carry the Ramada-Treff, Ramada Plaza, Ramada Encore, Ramada Hotels or Ramada Resorts name.

"Putting Ramada International's brand standards and reservation system together with our own market experience in Germany and Switzerland will create a successful business relationship," said Alexander Fitz, managing director of Treff Hotels.

Ramada International now operates hotels in 13 countries. Marriott's other brands include Marriott, Renaissance, Residence Inn, Courtyard, TownePlace Suites, and Fairfield Inn.

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