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Intercontinental Hotels Group

From its U.S. base of operations in Atlanta, InterContinental Hotels Group (IHG), a major global multi-brand company, oversees eight franchise brands, ranging from the namesake InterContinental Hotels and Resorts, to the upscale boutique Hotel Indigo, to the upper midscale Holiday Inn Hotels and Resorts and its younger sibling, Holiday Inn Express. Holiday Inn Express is the company’s most popular brand, with 2,115 properties in the United States alone, and more than 625 in the global pipeline. In fact, the brand recently expanded into new territory, opening its first property in Australia with the Holiday Inn Express Sydney Macquarie Park. This property is the first of more than a dozen planned Holiday Inn Expresses planned for Australia and New Zealand.

So far, 2016 has been a good year for IHG. According to its Q1 trading update, IHG’s global RevPAR increased 1.5 percent (1.9 percent in the Americas) during the first quarter and the company opened 5,000 rooms, increasing its net system 2.7 percent year-over-year to 742,000 rooms. Additionally, IHG reported 15,000 rooms signed, a pipeline of 220,000 rooms, with 45 percent under construction. For the immediate future, the company is focused on building and leveraging scale, signing rooms, and strengthening its position in the boutique segment with the Kimpton brand, which recently signed a deal to open its first property outside of the United States. While IHG is not looking to franchise Kimpton at the moment (see LODGING‘s conversation with IHG Americas Chief Development Officer Joel Eisemann on page 42), it is still a very strong brand for the company.

IHG has also been working to enhance its customer loyalty program, the IHG Rewards Club. Earlier this year, the company announced that Club members would receive a preferential rate when they book direct. This initiative began in the U.K. last year and is now available globally.

Additionally, IHG is working to roll out the next generation of its guest reservation system next year.

SNAPSHOT:
Cost per key | Candlewood Suites: $69,434-$94,498; Holiday Inn Express: $80,973-$113,481; Holiday Inn Hotels and Resorts: $101,342-$138,184; Crowne Plaza Hotels and Resorts: $94,808-$175,142; Even Hotels: $90,678-$145,388; Hotel Indigo: $114,003-$255,026; Staybridge Suites: $92,855-$126,586; Intercontinental Hotels and Resorts: $224,167-$328,292
Ownership Split | 150 corporate-owned/managed and 3,543 franchised
Rewards Program | IHG Rewards Club
Length of Contract | Not disclosed
Contact | development@ihg.com

Click Here for this listing in Lodging August’s Digital edition.

 

Brand NameWhat It's AboutChain ScaleCompetitive SetFranchise FeesU.S. Properties/Statesin the Global
pipeline
Candlewood Suites Since: 1995 (acquired by IHG in 2003)Focused on comfort, space, and value, properties offer spacious studios and one- and two-bedroom suitesMidscaleExtended Stay America, Home2 Suites by Hilton, Mainstay Suites, TownePlace SuitesApplication: $500/room (not less than $50,000)
Services: 2.5% GRR
Royalty: 5% GRR
342/43101
Holiday Inn Express Since: 1991Mid-priced hotel for value-oriented travelers who expect dependable service and informed hospitalityUpper-midscaleComfort Inn, Fairfield Inn, La Quinta, Hampton Inn, Application: $500/room (not less than $50,000)
Services: 3% GRR
Royalty: 6% GRR
2,115/50628
Holiday Inn Hotels and Resorts Since: 1952Offers today's travelers dependability, friendly service, and modern, attractive facilities at an excellent valueUpper-midscaleCourtyard by Marriott, Hyatt Place, Hampton Inn, Hilton Garden InnApplication: $500/room (not less than $50,000)
Services: 3% GRR
Royality: 5% GRR
742/49259
Crowne Plaza Hotels and Resorts Since: 1983Recently unveiled the next generation guestroom, which features a uniquely angled bed design, elements to reduce noise levels and amenities to ensure a great night’s sleepUpscaleDoubleTree by Hilton, Radisson, Hilton, Wyndham, Sheraton, MarriottApplication: $500/room (not less than $75,000)
Services: 3% GRR
Royalty: 5% GRR
171/3681
Even Hotels Since: 2013Focuses on creating a balance so travelers can make choices they feel good about while on the roadUpscaleFour Points by Sheraton, Aloft, Hyatt Place, Courtyard by Marriott, Hilton Garden InnApplication: $500/room (not less than $60,000)
Services: 3.5% GRR
Royalty: 5% GRR
3/38
Hotel Indigo Since: 2004Delivers a refreshing and inviting guest experience that is truly reflective of the local communityUpscaleAC Hotels, Hyatt Place, AloftApplication: $500/room (not less than $60,000)
Services: 3.5% GRR
Royalty: 5% GRR
43/1564
Staybridge Suites Since: 1998Innovative all-suite hotel brand designed to meet the needs of extended-stay guestsUpscaleResidence Inn, Hyatt House, Homewood SuitesApplication: $500/room (not less than $50,000)
Services: 2.5% GRR
Royalty: 5% GRR
212/39122
Intercontinental Hotels and Resorts Since: 1946Provides enriching and authentic experiences with local insight that comes from more than 69 years of experienceLuxuryGrand Hyatt, W Hotels, Fairmont, JW Marriott, WestinApplication: $500/room (not less than $75,000)
Services: 3% GRR
Royalty: 5% GRR
49/1456

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