German QMH hotels to get Scandic touch?

Hotel group Hilton has dismissed rumours that it is in talks with Queens Moat Houses (QMH) about franchising its 24 German hotels. A spokeswoman for the group said she 'was not going to comment on market speculation.'

QMH, however, has said that it was looking 'to do something' with the German properties and would be 'announcing something before the end of the year.' According to sources in the City, Hilton is keen to expand its Scandic chain of hotels, which it bought in June 2001, and has cited Germany as a specific growth area. Most of QMH’s German hotels currently operate under the Holiday Inn name, but that franchise contract is up for renewal soon.