Cendant Eyes Euro Expansion Of HoJo, Days Inn

<B> Cendant Eyes Euro Expansion Of HoJo, Days Inn</B>

By Maria P. Vallejo

<I>Parsippany, N.J.</I> - The emergence of pan-European commerce is opening doors for an invasion of the Continent by Cendant Corp.'s Howard Johnson and Days Inn brands.

Cendant plans to open 30 Howard Johnson and 20 Days Inn hotels in Europe this year, plus 20 more Howard Johnsons and 30 more Days Inns in other international destinations, over the next five years.

"The formation of a European Union is creating changes in travel dynamics," said vice president of international hotel development Bill Hanley. "You have open borders and common currency, and laid on top of that is the globalization of business there. Up until recently much of the business was transacted country by country, but now we're seeing alliances that encompass the European Union."

Using master franchise agreements, which grant a single franchisee country-wide rights to develop the brand, Cendant plans to capture the attention of the midpriced European business traveler.

Howard Johnson will target the business traveler who prefers to stay at a three- or four-star hotel, while Days Inn will focus on the limited service and economy market. Both hotels will allocate about 25 percent of their inventories to business class rooms (see story, page 3). New Cendant properties will open in the next six months in Belgium, Germany, Luxembourg, Portugal and Spain.

Where in the past business travel in Europe was conducted primarily by high-level executives staying at deluxe properties, the birth of the European Union is resulting in increased business traffic for midmarket properties, Hanley said. To attract this new customer base, some individual hotels are searching for franchise agreements that offer name recognition, a central reservation system and product consistency.

"With the formation of trans-European companies, we are seeing middle management travel similar to what we see here in the United States," Hanley said. "What's happening is the same thing that happened in this country 10 to 15 years ago, when franchising exploded."

Also encouraging is the increasingly global nature of travel by American-based corporations who know the brands. "Once you get out of country you realize how much Americana there is out there in the world today," Hanley said. "There is a remarkable demand for things that are American."

Cendant reported a 4 percent increase in international travel booked through its central reservation system last year, raising its revenue to $17 million. The attraction of the European market to the hospitality industry has been enhanced by the softening of the markets in Asia, South America and parts of Eastern Europe.