InterContinental Hotels Group (IHG) announced it has signed an agreement with Serbian-based Delta Real Estate to open the first Crowne Plaza in the Serbian capital of Belgrade. The 415-room hotel will undergo a major refurbishment, costing more than €30 million, before opening under the Crowne Plaza brand in 2010.

IHG will manage the property under a 25-year management agreement with Delta Real Estate. Last year the two companies announced an agreement to develop and manage a new build 325-room InterContinental Hotel in Belgrade, due to open in the first half of 2011.

The announcement comes after Delta Real Estate was declared the winning bidder for the purchase of the property, which was previously the state-owned Hotel Continental.

IHG’s Vice President of Development Europe, Peter Vermeer, said: “Belgrade is enjoying continued rapid and robust commercial activity which is fuelling a strong demand for high quality hotel brands. We are very pleased to be working with Delta Real Estate which has proved to be a very knowledgeable and capable partner in the area."

Mr. Dejan Raci, CEO Delta Real Estate, said: "IHG owns some of the world’s strongest hotel brands. It also has the skills and resources to exploit the fantastic opportunity we have in Serbia.”