Selina, a hotel and experiences brand focused on youth travelers, said on Wednesday that its financial metrics were trending in the right direction as it reported earnings results.
25.08.2023 - 13:04 / skift.com / Ihg / Sean Oneill
IHG Hotels & Resorts revealed on Tuesday that it has been pitching hotel owners on a new brand addressing an opportunity in the middle of the market it said is underserved.
“Our aim is that this new conversion brand will become the first choice for guests and owners in the midscale segment, accelerating our growth in a space that is already worth $14 billion in the U.S. market alone,” said CEO Elie Maalouf during remarks tied to the company’s quarterly earnings.
The Windsor, UK-based hotel group — whose brands include Holiday Inn, Crowne Plaza, and Six Senses — didn’t reveal the name of the new brand, which has become IHG’s 19th brand, or other details.
“We’re delighted that more than 100 hotels have already expressed definitive interest in the new brand,” Maalouf said.
Maalouf likely wanted to prioritize a conversion brand over a new construction brand to help address IHG’s need to maintain steady growth in its hotel pipeline.
Unlike new-build brands that take time to grow because of construction delays, conversion brands can expand quickly, especially as many independent hotel operators or owners of properties flagged with older brands seek a refresh.
“Conversions represent a major growth opportunity for us, generating around 40% of first-half openings and signings globally,” Maalouf said.
The new brand is Maalouf’s first big move as CEO, having taken the top job last month.
Maalouf had previously led the group’s North American business for 8 years. During that time, he showed an interest in mid-market growth.
Maalouf led his team in debuting the new brand Avid, in 2017, which he said at the time targeted “a vastly underserved $20 billion segment of the U.S. midscale market.” Avid charges roughly $10 to $15 a night less than Holiday Inn Express, IHG’s midscale leader, and less than Candlewood Suites, IHG’s other mid-scale brand. (The difference in market size figures Maalouf has quoted refers to different segments of the overall mid-market.)
Given Maalouf’s sense that the mid-market is underserved, he has prioritized putting another IHG brand on the grid. That said, IHG’s board (on which he’s been a member for years) approved of this initiative before Maalouf became group CEO.
The hotel franchisor already has upper midscale with Holiday Inn and Holiday Inn Express, so the new brand is likely more affordable.
IHG expects to target around a 25% lower cost per room to convert to the new brand than that for Holiday Inn Express.
IHG’s rivals have also been looking at the middle of the market.
IHG has assembled a hospitality collection with some of the most wide-ranging and eclectic brands in the world. Here’s what you need to know about every one of them.
Selina, a hotel and experiences brand focused on youth travelers, said on Wednesday that its financial metrics were trending in the right direction as it reported earnings results.
Holiday Inn and Holiday Inn Express brands, together making up nearly 70% of InterContinental Hotels Group (IHG)’s portfolio in India, are going to remain the “driver of growth” in the market, said the company’s South West Asia Managing Director, Sudeep Jain.
EasyHotel has always been the success story of tomorrow. That’s been true since EasyJet founder Stelios Haji-Ioannou invented the budget hotel chain in 2004.
Hilton said Thursday that it plans to install at least six electric vehicle chargers per property at 2,000 hotels in North America, and will buy devices from Tesla. Once it fully installs them, Hilton will own more electric vehicle chargers than any other U.S.-based hotel group.
Earnings seasons for the hotel sector is nearly over, and one striking aspect of executive comments on calls with investors was the resilience of development pipelines for hotels belonging to brands run by global groups. For new construction, conversions, and franchise signings, hotel companies painted an optimistic picture.
Here are some excerpts from Daily Lodging Report from the past week. If you’re not a subscriber, you should be. Get news on hotel deals, development, stocks, and career moves. Sign up here, now.
Good morning from Skift. It’s Tuesday, November 22. Here’s what you need to know about the business of travel today.
InterContinental Hotels Group (IHG) said on Monday that it had added Iberostar Hotels & Resorts as a new brand through a 30-year licensing deal that lets IHG market the all-inclusive hotels and resorts. “Up to 70 hotels,” equal to about 24,300 rooms, will become bookable through IHG’s website and app under the Iberostar Beachfront Resorts brand — the 18th IHG brand.
Here are some excerpts from Daily Lodging Report from the past week. If you’re not a subscriber, you should be. Get news on hotel deals, development, stocks, and career moves. Sign up here, now.
Appealing to people’s emotions is becoming a more effective way for hotel groups to woo travelers because guest needs are evolving in ways that undercut the traditional branding recipe. Many hotel executives are fine-tuning what their brands stand for and how they communicate that message to guests as they try to grab market share.
Hilton Worldwide is rolling out its first-ever hotel brand in the economy slice of the market, Spark by Hilton, taking on rivals such as Marriott International, Choice, and InterContinental Hotels Group in this competitive market segment.
Here are some excerpts from Daily Lodging Report from the past week. If you’re not a subscriber, you should be. Get news on hotel deals, development, stocks, and career moves. Sign up here, now.