ISTANBUL—Though it is virtually unknown outside Turkey, the Divan brand name is among the most recognizable in the country. Besides a successful restaurant business and a popular chain of upscale pastry shops, the group’s hotels division runs seven properties in Turkey under the Divan name. And soon, Divan Hotels—a subsidiary of Koç Holding, which is the only Turkish company listed on the Fortune 500—is poised for rapid expansion, with plans to grow to 21 hotels by 2012 and 58 hotels by 2017.

The next two Divan properties are slated for 2008 openings in the Turkish cities of Gaziantep and Istanbul (the group’s third in its home city), for a combined investment of US$60 million. After that, Divan plans to go international, targeting Berlin, Almaty, Moscow and St. Petersburg in the short term. Expansion plans will be centered on global city center locales with strong Turkish presences, says Joep Bakx, general manager of Divan Group.

“We want to be where Turkish people live and travel to, because Divan is a very well known and respected brand in Turkey,” Bakx says. “We have a benchmark in Turkey for quality, and we are trying to take that abroad.”

Divan, which will be the first Turkish chain to go international with a city hotel concept, operates primarily as a management company but intends to own some of its own properties going forward. It is also the first Turkish chain to achieve ISO 9001 Quality Certification from the International Organization of Standards.

Divan Hotels are geared toward business travelers, and the newest properties offer 5-star luxury that embraces the character of each hotel’s host city. Each building has a custom design, Bakx says, with essential standardized amenities like business centers with free WiFi and fitness centers.

Divan draws on its restaurant expertise to create unique all-day F&B offerings and 24-hour roomservice. “The food and beverage might have a modern Turkish element in the cuisine that is quite refined, but we will offer dishes that people want to eat,” Bakx says. “We will not offer opulent dining rooms, but rather restaurants where people will be comfortable and will want to be.”

The group’s flagship property, the 175-key Divan Istanbul, offers a disproportionate five F&B options. Besides a standard restaurant and pub, the hotel also has Hai Sushi, Kehribar and Divan Patisserie.

From a marketing standpoint, Divan benefits from its promotion by sister company BookInTurkey.com, which has become Turkey’s largest online tourism portal. Additionally, Divan Group features one of the most comprehensive customer relationship management systems in the world—called Paro, the loyalty program ties together the varied outgrowths of Koç Holding to offer points redeemable for myriad rewards, including hotel stays, for its 11 million members.

“We build loyalty with our sister companies in the retail, finance and automotive sectors. This is something that is probably unique in the world; it gives us a very powerful position in the market,” Bakx says. “It is a powerful machine behind us to help take Divan Hotels to a prominent place in the world.”

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