Exclusive by James Wilkinson in New York
Several senior IHG executives have revealed to HM a new midscale brand will be launched by the company in the coming weeks.
Speaking to HM at the 39th annual NYU International Hospitality Industry Investment Conference in New York yesterday (June 5 local time), the execs said the brand would be tech-savvy, would be priced below Holiday Inn Express and would feature only new-build hotels.
While they were tight-lipped on the name and look of the brand, the execs revealed it would be unveiled at IHG’s Americas investor conference in Las Vegas in two weeks.
Following the meeting, IHG’s Executive Team released a statement to HM, which revealed it is a brand that’s scalable, efficient and would offer a significant ROI for owners.
“Our long-term strategy for high-quality growth is predicated on building a portfolio of preferred brands; growing and leveraging scale, creating long-lasting relationships with guests and owners, and investment in technology,” the company said.
“We have a well-established history of building scale where it matters most. This is evident with our mainstream/midscale preferred brands: Holiday Inn Express (the world’s largest brand), Holiday Inn, Candlewood Suites and Staybridge Suites.
“To continue the momentum of our global mainstream/midscale success and leadership, we will be sharing exciting details on a new, fresh midscale hotel brand at our owner conference in Las Vegas two weeks from now.
“We will serve a growing type of midscale guest estimated to be worth USD$20 billion in projected revenues.
“Our owners will have a first look at our new hotel brand that is design led, technology enabled, built for a great night’s sleep and powered by our world-class IHG rewards club; all at a great price and value.
“It will deliver the same excellent ROI as leading brands in the midscale segment, while at a lower ADR. It will have an ADR that is ~$10 to $15 below Holiday Inn Express.
“And it will be a national scale brand over time, not niche.
“We’re confident we’ll continue our proven track record of identifying and building scale where it matters most by delivering this new hotel brand that is right for our owners, our guests and our shareholders,” IHG said.
IHG said the brand would be initially launched and grown in the United States before it is offered in other markets.