FX Excursions

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Hotel Update: IHG

Sep 1, 2015
2015 / August 2015

If bigger is better, then InterContinental Hotels Group is getting a whole lot better. In the first quarter of this year, the company signed more new hotels than in any quarter in the past seven years. IHG also finalized the acquisition of Kimpton Hotels & Restaurants, one of the most iconic boutique hoteliers in the United States, and laid out strategies for growing new brands, strengthening its appeal to various niches and investing in technology.

Hotel Indigo Bangkok lobby

Hotel Indigo Bangkok lobby © Intercontinental Hotels Group

In short, there’s a lot happening with IHG around the globe. “Our strong first-quarter openings and signings performance demonstrates the continued momentum we’re seeing in our business and reflects owner confidence in both our new and established brands,” says Richard Solomons, the company’s chief executive officer. “We signed more than one hotel per day in Q1, with 95 percent of these deals in our priority markets.”

The company’s growth leader, by far, is Holiday Inn, now in 75 countries. But other brands are attracting attention, too. IHG’s $430 million acquisition of Kimpton Hotels & Restaurants gives the company an even larger presence in the U.S. boutique hotel segment, and expansion is in the works. “We’re continuing to grow our industry-leading boutique brands,” Solomons adds. “Hotel Indigo opened in two new markets, and we are already leveraging our scale to grow our recently acquired Kimpton Hotels & Restaurants brand, opening three hotels and signing a further four.”

HUALUXE Nanchang High-Tech Zone

HUALUXE Nanchang High-Tech Zone © Intercontinental Hotels Group

Acquisition may play an important role in IHG’s growth strategy in the boutique segment, but the company is also relying on recently developed brands to secure its place in other sectors. HUALUXE Hotels & Resorts, created to serve the needs of Chinese travelers, debuted its first property this year in China, while EVEN Hotels is designed for health-conscious road warriors in the United States. “Our HUALUXE brand taps into the immense opportunity presented by the growth in Chinese travel, taking the best aspects of renowned Chinese hospitality and applying IHG’s international scale,” says Solomons. “EVEN Hotels, meanwhile, meets the large and growing demand for a hotel brand to help wellness-minded travelers maintain their balance on the road.”

IHG also banks heavily on technology to improve the guest experience at all of its brands. An important component of this strategy is IHG’s partnership with Amadeus to develop a next-generation, cloud-based Guest Reservation System. “Our strategy is underpinned by investment in technology platforms to ensure we maintain an industry-leading position in what is a rapidly changing landscape,” he says. “Our approach to this starts with understanding our guests and their needs before we look at areas where we can add real value across the guest journey through on-property and mobile technology.”

The Hotel Wilshire, A Kimpton Hotel

The Hotel Wilshire, A Kimpton Hotel © Intercontinental Hotels Group

Partial translation: Guests will be able to do more things than ever using their smartphones. “In 2014 we standardized on-property hardware across our U.S. estate, paving the way for the launch of mobile check-in and check-out,” Solomons notes. “In February we announced that this service was already live in over 500 hotels, and rollout is ongoing. We continue to prioritize the strategic use of both on-property and mobile technology to own the ‘stay’ phase of the guest journey.”

Candlewood Suites
Demographic: Midscale extended-stay travelers
Offerings: This extended-stay brand focuses on providing value prices and a home-like atmosphere with studio and one-bedroom suites, each with kitchen, workspace, recliner, free WiFi and free local calls; all properties have 24-hour fitness centers and guest laundries as well as the Candlewood Cupboard, a snack and refreshment bar. The current portfolio includes 326 hotels, with 89 in the pipeline.
Highlight: Among the newest Candlewood Suites properties, Candlewood Suites Oak Grove in Fort Campbell, Ky., includes a fitness center, a full kitchen in every suite, free guest laundry facilities and a free movie library.

Crowne Plaza Hotels & Resorts
Demographic: Upscale business travelers and the meetings segment
Offerings: This full-service hospitality brand currently has 404 hotels and 92 new hotels in the works. Last year, Crowne Plaza debuted its next-generation guestroom with angled beds and redesigned workspaces. The Crowne Plaza meetings program, a key element of the brand’s identity, guarantees a two-hour response time for meeting space requests for proposals.
Highlight: The newest Crowne Plaza in Latin America is the Crowne Plaza – Panama Airport, the closest hotel to fast-growing Tocumen International Airport near the capital city. The $20 million property has an airport shuttle service, meeting space, outdoor swimming pool and 24-hour fitness and business centers.

EVEN Hotels
Demographic: Health-conscious business and leisure travelers
Offerings: Created in 2012 for travelers who aim to maintain a healthy lifestyle while on the road, EVEN Hotels currently has two hotels as well as three in development. Guestrooms include space to exercise and in-room workout options, and each hotel features healthy food and beverage options, free filtered drinking water, gyms and group exercise activities.
Highlight: The 167-room EVEN Hotel Rockville, located in a city home to more than 60 major companies in Maryland, has flexible work spaces, natural outdoor areas and free WiFi, as well as easy access to nearby Washington, D.C.

Holiday Inn Express
Demographic: Business and leisure travelers
Offerings: Focused on a combination of “comfort, convenience and good value,” Holiday Inn Express is one of IHG’s fastest-growing brands. The current portfolio includes 2,376 hotels, with 541 new properties in the works. Amenities at these limited-service hotels include free WiFi and the Express Start breakfast bar.
Highlight: Holiday Inn Express Cartagena Bocagrande is a new-build, 200-room hotel in the most modern area of Cartagena, Colombia, close to shops, restaurants, nightclubs and art galleries and a short ride to the historic city center.

Holiday Inn Hotels & Resorts
Demographic: Business and leisure travelers, including families
Offerings: Founded in 1952, Holiday Inn is one of the best-known midscale brands in the world, with 1,154 hotels and 248 hotels in the pipeline. Holiday Inn Hotels & Resorts provides comfort and reliability as well as amenities including restaurants, room service, swimming pools and fitness centers.
Highlight: The Holiday Inn Frankfurt – Ale Oper, opened this year, is located in Frankfurt’s financial business district, about 15 minutes by taxi from the airport. The property has a contemporary open lobby concept, a restaurant, free WiFi and a Starbucks coffee shop.

Hotel Indigo
Demographic: Travelers who prefer the personality of a boutique hotel but also want the consistency and amenities of a major brand
Offerings: Described as the industry’s first global branded boutique hotel, Indigo currently has 63 hotels and 63 new hotels in the pipeline. Each property boasts unique design elements like hard-surface flooring, area rugs, spainspired showers, 24-hour fitness and business centers and a pet-friendly policy.
Highlight: The 192-room Hotel Indigo Bangkok Wireless Road marked the brand’s debut in Asia this year. The property features vertical gardens, murals inspired by street art and other artistic touches like a wall of wireless radios that evoke the neighborhood’s history as the birthplace of Thailand’s wireless radio stations.

HUALUXE Hotels & Resorts
Demographic: Affluent Chinese business and leisure travelers
Offerings: Described as the first global hotel brand designed specifically for Chinese guests, IHG developed HUALUXE with a China-based management team, based on four Chinese guest priorities: tradition, rejuvenation, status recognition and enabling spaces. The brand has one hotel open in China, with 23 new hotels planned.
Highlight: The HUALUXE Yangjiang City Centre opened in February in Yangjiang, a fast-developing leisure and business destination in China’s Guangdong Province. The hotel features 282 guestrooms including 76 club and deluxe suites, as well as multiple restaurants and what is billed as the largest pillarless ballroom in the city.

InterContinental Hotels & Resorts
Demographic: Upscale business and leisure travelers
Offerings: IHG’s flagship luxury brand is located in key cities and resort destinations in more than 60 countries, with 179 hotels and 51 new hotels in the pipeline. Hotels feature elegant décor and multiple dining options as well as fitness centers, spas and other amenities.
Highlight: The InterContinental Sydney enjoys an enviable location in Australia’s largest city, with a rooftop Club InterContinental that overlooks Sydney Harbour. New hotels in the works include a 900-room hotel in downtown Los Angeles, which will be the largest InterContinental hotel in the Americas when it opens in 2017 as part of a 73-story, $1.1 billion project.

Kimpton Hotels & Restaurants
Demographic: Independent, individualistic travelers in the United States
Offerings: At the time of IHG’s acquisition of Kimpton in January, the brand had 62 existing hotels and 16 in the works. Kimpton is known for unique touches like placing yoga mats in every guestroom, hosting evening Wine Hours and loaning bicycles to guests for free. Kimpton’s restaurants present unique, locally inspired dining experiences.
Highlight: Among the newest Kimpton properties is the 248-room Hotel Monaco in Pittsburgh, set in a restored 1903 building in the Central Business District across from Mellon Square Park. The property’s design elements include golden birdcage chandeliers and an open-air, rooftop Biergarten.

Staybridge Suites
Demographic: Upscale extended-stay travelers
Offerings: Offering an upscale, residential-style accommodation experience, Staybridge Suites has three suite types, all with full kitchens, free WiFi and separate living and sleeping areas. Also included are evening receptions, hot breakfast buffets and use of the 24-hour business center, fitness room and laundry room. Staybridge Suites has 210 hotels in its portfolio, with 101 in the pipeline.
Highlight: Among the newest properties are the 93-room Staybridge Suites London-Vauxhall, which opened in England in January, and the 100-room Staybridge Suites Chihuahua, which opened in Mexico in February.

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