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Mithun signs franchise deal with Howard Johnson

Mrityunjoy Chatterjee

Film actor Mithun Chakraborty's Monarch Hospitality Services has signed an exclusive franchise agreement with US-based Howard Johnson International Inc, a mid-scale hotel industry leader.

Following the pact, Monarch Hospitality Services hotels at Ooty, Coimbatore and Masinagudi, having a combined capacity of 132 rooms, will convert to the Howard Johnson brand.

"This is a big day for Monarch group. We want to go to every nook and corner of India. Besides cities, we are eyeing exotic locations in the country. The Howard Johnson group has set certain standards, and now we have to achieve those", an elated Mithun Chakraborty said.

The Monarch group will develop and franchise the Howard Johnson brand in India, providing assistance in all aspects of hotel operation including financing, global marketing and training.

The company plans to develop hotels in Calcutta, Madras, Bombay, New Delhi, Bangalore, Hyderabad and Ahmedabad.

While providing sales and marketing support to Howard Johnson properties in India, Monarch will have access to Johnson's network of the global sales offices.

"The agreement with Monarch provides Johnson a foothold in Asia," said Mary Mahoney, Howard Johnson's president and chief executive officer.

"We welcome the Monarch group to the Johnson family and look forward to help them provide their guests with quality lodging experiences."

Chakraborty, who also has interests in media and entertainment, said "We are yet to formally announce the deal. But we are getting a lot of enquiries." The dancing star of silver screen in the 1980s added, "We plan to go in phases. Our next plan is to extend our network to neighbouring countries such as Nepal, Bangladesh and Sri Lanka."

Monarch Hospitality Services was launched last year by Mithun Chakraborty and Satyabrata Mukhopadhyay.

Mukhopadhyay, a Calcutta-based leather goods manufacturer and exporter, said, "We are associating with a big brand. We are sure to emerge as a major player in the service industry soon. This is a niche sector which has not been exploited fully."

Howard Johnson International Inc franchises more than 500 hotels and inns in the US, Argentina, Canada, Dominican Republic, Equador, Israel, Lebanon, Malta, Mexico, Oman, the United Arab Emirates and Venezuela.

The hotel division of Cendant Corporation is the world's largest lodging franchiser with 6441 hotels representing 539,506 rooms in five continents under the Super 8, Days Inn, Ramada, Travelodge, Howard Johnson, Knights Inn, Villager Lodge, Villager Premier, Winagate Inn and AmeriHost Inn brands.

Cedant-franchised hotels sell one out of every four economy and mid-priced room rights in the US.

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