Holiday Inn Relaunch
InterContinental Hotels Group PLC
24 October 2007
InterContinental Hotels Group (IHG) announces
worldwide brand relaunch of Holiday Inn
InterContinental Hotels Group (IHG) today announces a worldwide relaunch of the
Holiday Inn brand family, comprising Holiday Inn, Express by Holiday Inn and
Holiday Inn Express ('Holiday Inn').
All Holiday Inn hotels will be required to implement the relaunch programme,
focused on delivering consistently best in class service and physical quality
levels, including a redesigned welcome experience, signature bedding and
bathroom products. Redesigned brand signage will be installed at hotels once
they have implemented the relaunch programme. This will give Holiday Inn a
refreshed and contemporary brand image. All Holiday Inn hotels open or under
development are expected to have implemented the relaunch programme by the end
of 2010, with the first due to open in spring 2008 in the US.
Established in 1952, Holiday Inn is one of the world's most recognised hotel
brands with over 400,000 rooms (3,125 hotels) open and a development pipeline of
more than 110,000 rooms (942 hotels). This development pipeline continues to
grow rapidly, with over 16,000 rooms signed in the third quarter of 2007, a 6%
increase on Q3 2006. Further details of Holiday Inn signings, openings and
removals since 2001 are available at
http://www.ihgplc.com/holidayinnsignings.pdf.
IHG expects the relaunch programme to allow Holiday Inn hotels to generate
significantly higher revenue per available room (RevPAR), and generate an
enhanced return on investment for their owners. Owners and franchisees will
invest up to $1billion over a three year period in total to carry out the brand
relaunch to meet the required service and quality levels.
IHG will make a non recurring revenue investment of up to £30m to accelerate
implementation of the relaunch. This cost is anticipated to be accounted for as
an exceptional item. This investment will, inter alia, fund a proportion of the
cost of signage conversion at recently opened Holiday Inn hotels that agree to
fully implement the relaunch programme during 2008, and fund the relaunch
programme at certain high profile hotels that will be used to showcase the
brand. IHG expects to generate a strong return on this investment through
RevPAR increases across the Holiday Inn brand family following completion of the
relaunch.
Announcing this to an audience of over 4,500 hotels owners, managers and
investors at IHG's annual Americas conference in Dallas, Chief Executive Andrew
Cosslett, said:
"This is an important moment in Holiday Inn's history. The brand is the largest
and one of the most successful in the hotel industry and its relaunch will
ensure that this position is maintained. We have spent a considerable amount of
time getting the facts and the insights to enable us to make these changes, in
partnership with our owners. The Holiday Inn sign is seen by hundreds of
millions of people every day around the world. The changes we are making will
ensure the Holiday Inn brand goes forward into the future with a strong and
confident new image. We want our guests to get as much enjoyment from Holiday
Inn hotels over the next 50 years as they have over the last 50."
Rick Takach Jr., Chairman of the International Association of Holiday Inn
("IAHI") representing nearly 3,000 of IHG's hotel owners and operators, added:
"Holiday Inn is a legend in the hotel industry. It has a proud history, and IHG
is now demonstrating its commitment to keep the brand fresh in the minds of both
hotel owners and guests with its renewed focus on quality and innovation. The
IAHI strongly supports this development and looks forward to the business
improvement it will deliver."
InterContinental Hotels Group PLC (IHG) of the United Kingdom (LON:IHG, NYSE:IHG
(ADRs)) is the world's largest hotel group by number of rooms. IHG owns,
manages, leases or franchises, through various subsidiaries, over 3,800 hotels
and more than 563,000 guest rooms in nearly 100 countries and territories around
the world. IHG owns a portfolio of well recognised and respected hotel brands
including InterContinental(R) Hotels & Resorts, Crowne Plaza(R) Hotels &
Resorts, Holiday Inn(R) Hotels and Resorts, Holiday Inn Express(R), Staybridge
Suites(R), Candlewood Suites(R) and Hotel Indigo(R), and also manages the
world's largest hotel loyalty programme, Priority Club(R) Rewards with over 33
million members worldwide.
The company pioneered the travel industry's first collaborative response to
environmental issues as founder of the International Hotels and Environment
Initiative (IHEI). The IHEI formed the foundations of the Tourism Partnership
launched by the International Business Leaders Forum in 2004, of which IHG is
still a member today. The environment and local communities remain at the heart
of IHG's global corporate responsibility focus.
IHG offers information and online reservations for all its hotel brands at
www.ihg.com and information for the Priority Club Rewards programme at
www.priorityclub.com
For the latest news from IHG, visit our online Press Office at www.ihg.com/media
For further information, please contact:
Investor Relations (Paul Edgecliffe-Johnson; Heather Wood): +44 (0) 1753 410 176
Media Affairs (Leslie McGibbon; Claire Williams): +44 (0) 1753 410 425
+44 (0) 7808 094 471
High resolution images to accompany this announcement are available for the
media to download free of charge from www.vismedia.co.uk. This includes new
shots of the refreshed Holiday Inn and Holiday Inn Express branding
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