Published on : Wednesday, June 21, 2017
InterContinental Hotels Group (IHG®), one of the world’s leading global hotel companies, revealed plans to launch a new, high-quality midscale brand at its 2017 Americas Conference this week in Las Vegas. It will target more than 14 million guests in a vastly underserved segment of the U.S. midscale market, estimated to be worth $20 billion in annual industry revenues. This brand will champion the traveler who wants a hotel stay that finally meets their expectations for the type of hospitality they value most – the basics done exceptionally well – at a price point about $10-15 less than IHG’s industry-leading Holiday Inn Express® brand.
Richard Solomons, Chief Executive Officer, IHG, said: “This new brand builds on IHG’s leading position in the midscale segment alongside Holiday Inn and Holiday Inn Express. It addresses the needs of a rapidly growing and underserved segment and we believe it will shape the future of this unique midscale category. This launch will extend our track record of innovation and brand development, with a new offering that is right for our guests, our owners and our shareholders.”
This brand was created around a set of fundamental values: taking a new approach to designing everyday travel; appreciating the value of guests’ every hard-earned dollar and being direct, honest and clear. The name, logo and other brand elements will be announced later this year. Initial features of this brand include:
Elie Maalouf, Chief Executive Officer, IHG, Americas, continued: “These travelers will often spend hours researching hotels to find a great and affordable lodging experience in this segment. When they can’t find it, they compromise, accepting lower standards and an inconsistent experience to get the price they want. We will change that with this new brand by delivering a superior guest experience that doesn’t currently exist at this price point. It’s a game changer and a huge opportunity to build scale, strong brand awareness and great financial performance for our owners.”
IHG expects the brand to be franchise-ready in the fall of 2017 with the first hotels beginning construction in early 2018 and opening in 2019. Initial development will be focused in the U.S. market. Working hand-in-hand with its owner advisory board, the brand’s development has been guided by feedback from owners and operators to help ensure these new hotels are efficient to build, operate and maintain.
Once the brand is launched, key elements of the initial owner offer will include: