To paraphrase The Sugarhill Gang, IHG has decided to focus on its mid-range hotels and motels — like Holiday Inns. (Which begs the question: How is this different from the status quo?)
Plus, hotel workers may receive their COVID-19 vaccinations sooner than originally expected.
Those were some of the day’s travel headlines that caught my eye. I thought you, too, may find them interesting.
Midscale Hotels Are the Future of IHG?
While IHG is the flag for InterContinental and, most recently, Kimpton and Hotel Indigo, Skift reports that the company will “focus on non-luxury brands.”
Considering that over three-quarters of its portfolio is made up of hotels such as Holiday Inn, Staybridge Suites, etc., I thought they were already doing that.
But it seems those brands will get more of corporate’s attention.
Cameron Sperance writes:
… [C]ompany leaders maintain their brands of hotels like Holiday Inn that typically lack full-service amenities like a sit-down restaurant will reignite the expansion trajectory. Hotel owners will prefer to run lower-cost, high-margin properties during the recovery, the thinking goes.
But as development interest returns, IHG leaders see a bulk of demand in its middle-market brands. Owners like this sector, as hotels are generally cheaper to build and operate at higher margins because they don’t have amenities like a spa or restaurant.
Only 4 percent stems from IHG’s luxury portfolio of brands like InterContinental.
I’m not bagging on IHG. I usually stay at its hotels several times a year. And most of those nights are spent at Holiday Inns or Holiday Inn Expresses. I know the company isn’t known for luxury — and I certainly don’t expect it when I stay at Holiday Inns (or similar properties).
Hearing IHG wanted to spend more time on those brands, though, raised an eyebrow. To me, it sort of sounded like Dominos rededicating itself to pizza over wings and pasta.
Hotel workers may soon receive a shot in the arm — literally.
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