Wars' hotel plans

Wars, the provider of restaurant-car services on national rail operator PKP Intercity trains, whose name has long been associated with buffet cars reminiscent of the bygone communist era, is planning to use its experience in catering to passengers to open a chain of three-star hotels at railway stations across Poland, according to daily Puls Biznesu.

Despite its claim to fame, Wars actually makes most of its revenue from sleeping-car services on domestic and international overnight trains. Both its sleeping-car and restaurant-car services are undergoing a major overhaul at present.

The company started its makeover last year when its majority shareholder, PKP Intercity (PKP IC), decided to put restaurant-car services out to tender, frustrated at Wars' reluctance to modernize.

Having won the tender, Wars is now undergoing a major rebranding program.

The creation of a chain of hotels near railway stations may become one aspect of this change, and could tie in neatly with PKP's plans to modernize Poland's major railway stations. The rail group hopes to attract private investors to develop commercial enterprises at stations, including hotels.

Wars declined to comment about its hotel chain plans when contacted by WBJ, citing its privatization preparations, with advisers having been appointed in April 2008. Main owner PKP IC is also preparing for privatization in 2009, and is keeping quiet about its plans.

Nevertheless, Wars recently signed a cooperation agreement with French Compagnie Internationale des Wagons-Lits, the restaurant- and sleeping- car operator, owned by hotel giant Accor. There is much speculation about whether a partnership agreement may be struck between Accor and Wars.