InterContinental Hotels Group Reports Record Hotel Development Pipeline Activity
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InterContinental Hotels Group Reports Record Hotel Development Pipeline Activity
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Category: Worldwide
This is a press release selected by our editorial committee and published online for free on 2006-09-04
As reported in the IHG Plc. interim results (to June 30, 2006) stock exchange announcement issued on August 22nd, InterContinental Hotels Group (IHG) [Lon: IHG; NYSE: IHG (ADRs)], the world’s largest hotel group by number of rooms, is experiencing record development pipeline activity company-wide with exceptional momentum surrounding its Holiday Inn Hotels & Resorts, Crowne Plaza Hotels & Resorts and Hotel Indigo brands.
“As demonstrated by the 20-year record-high Holiday Inn pipeline, 25 percent jump in Crowne Plaza growth and perpetual interest in Hotel Indigo, IHG continues to attract franchisees and developers who recognize the strength and performance of all IHG brands,” said Kirk Kinsell, SVP and chief development officer, the Americas, IHG. “The Americas region is experiencing phenomenal overall growth and will continue on this path with its 80 percent contribution to the IHG global development pipeline, which is the largest pipeline of any hotel company worldwide.”
The world’s most recognized hotel brand, Holiday Inn Hotels & Resorts, is currently experiencing a 20-year record-high pipeline with 182 hotels. With 80 percent of the pipeline comprised of new build, the brand continues to lower the average age of the portfolio while maintaining the brand hallmarks that customers expect and depend upon when they choose Holiday Inn.
Outperforming its segment in RevPAR growth, Crowne Plaza Hotels & Resorts continues to expand its portfolio with 20 hotels (more than 4,600 rooms) in the pipeline to complement its existing 144 hotels (more than 40,000 rooms). In just the last 18 months, the brand has grown 25 percent as a result of new hotels opening across the Americas region.
Consistent with consumer response to Hotel Indigo, the newest member of the IHG family, the brand is well-positioned to meet the growing demand with 17 hotels in the pipeline. The existing portfolio consists of four hotels in the Atlanta, Houston and Chicago markets.
IHG experiences great success in attracting developers not only because of the company’s strength in franchising and branding, but also as a result of IHG’s proven track record in hotel management. The Hotel Management Group, the America’s operations division of IHG, has a management pipeline of more than 4,500 rooms which will join its existing portfolio of more than 43,000 rooms. Most recently, The Hotel Management Group executed contracts for several hotels in cities across the U.S. including Baltimore, Baton Rouge, Houston, San Antonio and Savannah. The Hotel Management Group’s latest offering, Performance AdvantageTM, was launched in March 2006. This proprietary hotel management program allows The Hotel Management Group to adapt its management services and contract terms based on the needs of each individual property investor.
IHG’s continued focus on growth is also evidenced in the Americas across the company’s other four brands (as of June 30, 2006):
InterContinental Hotels & Resorts
With IHG’s increased emphasis on the development of its upscale brands, InterContinental Hotels & Resorts has seven hotels in the Americas pipeline to complement its existing 48 upper-upscale segment hotels in the region. Americas InterContinental Hotels & Resorts properties which opened in just the last six months include: InterContinental Kansas City at the Plaza, Missouri, InterContinental Harbor Court Baltimore, Md. and InterContinental Playa Bonita Resort & Spa, Panama. The InterContinental Boston, Mass. is scheduled to open in Fall 2006. The brand has a total of 33 hotels in the global pipeline to complement its total portfolio of 142 hotels worldwide.
Holiday Inn Express
Holiday Inn Express, the fastest-growing hotel brand in the limited-service hotel category, has 441 properties in the Americas development pipeline. With the highest market share in the U.S. limited service pipeline, the brand continues to open an average of two hotels per week, and has grown to more than 1,460 hotels since its introduction in the early 1990s.
Staybridge Suites
Staybridge Suites reached 75 hotels faster than any other competitor in the upscale extended-stay segment with 92 now open. The brand currently has 19 properties under construction with a total of 98 in the pipeline.
Candlewood Suites
Candlewood Suites has more hotels in the pipeline than any other brand in the midscale extended-stay segment. It has 120 properties with another 103 properties in the Americas pipeline.
With 2,873 hotels (389,722 rooms), IHG’s Americas region has continued its growth momentum at a steady pace from January-June 2006, with the opening of 108 hotels (13,681 rooms). Helping further the success and momentum of its brands, IHG’s integrated approach helps unify marketing initiatives so that hotels benefit from each others’ efforts and learn from each other – while keeping the brands distinct and differentiated to their customer segments. This is done by offering current and prospective franchisees a multi-brand marketing platform comprised of our Enterprise Values – technology, global reservations centers, global sales, performance support, and Priority Club Rewards; as well as, fostering a collaborative, ‘Together We’re Stronger’ relationship with its hotel owners.
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