InterContinental plans Holiday Inn revamp
|
|
|
By Chris ReiterNEW YORK (Reuters) - InterContinental Hotels Group Plc , the world's largest hotel company, said on Wednesday it plans to relaunch Holiday Inn, marking the 55-year-old brand's first major overhaul.InterContinental, which mainly manages or franchises hotels, expects the relaunch to boost the appeal of the widespread Holiday Inn chain, which hosts more than 300,000 people every night at more than 3,000 hotels.The company plans to invest up to 30 million pounds in 2008 to help pay for new signage at recently opened Holiday Inns and fund renovations at some high-profile hotels. It plans to record that amount as a one-time charge.Intercontinental expects Holiday Inn owners and franchisees to invest $1 billion over a three-year period to carry out the relaunch, which is required.Holiday Inn hotels will get new signs featuring an updated logo. The lobbies will have new lighting, landscaping and customized scents, and rooms will get new bedding and improved showerheads.The hotels with the new package will start cropping up in spring, with the roll-out expected to be completed by the end of 2010.InterContinental expects the relaunch to lead to a 3 percent to 7 percent increase in revenue per available room -- a key measure of hotel performance -- at Holiday Inn hotels and more than offset those expenses."That's material and will certainly pay back the investment," Andrew Cosslett, InterContinental's chief executive, told Reuters.With almost 1,000 properties under development, the company, which also operates the Crowne Plaza, InterContinental, and Staybridge brands, wants to refresh the mid-market brand ahead of the opening of a wave of new hotels."We choose the moment now to change the brand, because we have got all this growth ahead of us and this big pipeline and we wanted to make sure that it comes out with a new look and feel," said Cosslett.The company also hopes the relaunch will spur further growth by attracting new hotel owners."We expect to sign more deals going forward. I think we'll see a big surge of interest from outside our owner group" InterContinental's CEO said.(Reporting by Chris Reiter, with additional reporting by Dan Lalor in London)
(c) Reuters 2007. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
|
|
|
|
|
|
Related News
US stock drop slightly on Dell profits, mixed for week
New York - Technology and energy shares pushed US stocks lower Friday, capping a mixed week for investors amid unease about the pace of the world's economic recovery. Tech stocks slid after a disappointing earnings report from computer giant Dell, wh...
GM: Opel restructuring plan by mid-December; cuts up to 25 per cent
Washington - US carmaker General Motors will present a new restructuring plan for its European operations by mid-December, Nick Reilly, the new head of GM Europe, wrote on his new blog Friday. While the details were still being hashed out, Reilly war...
US stock sell-off on fears of weak recovery
New York - US stocks followed global markets in a broad decline amid investor fears over the world's uneasy recovery from recession. Major US stock indices fell about 1 per cent on average, following hefty declines in the DJ Euro Stoxx 50 and Japan's...
US leading economic indicator gains 0.3 per cent
Washington - A key measure of US economic performance gained in October, according to a private research group Thursday, signalling that a broader recovery may be taking hold. The New York-based Conference Board's Leading Economic Index added 0.3 per...
US stocks fall slightly on technology earnings
New York - US stocks posted modest losses Wednesday on poor profit forecasts from technology firms and a surprising dip in home construction. Earnings from Salesforce.com and Autodesk were worse than expected. Other technology shares losing ground in...
Obama acknowledges danger of double-dip recession if deficit grows
Washington - President Barack Obama said Wednesday he was mindful of the dangers brought on by the country's skyrocketing budget deficit, warning that too much spending could lead the United States into another recession. Obama, who has taken heavy c...
US inflation 0.3 per cent in October - Summary
Washington - The US inflation rate was 0.3 per cent in October compared to the previous month, according to the Labour Department Wednesday. The higher-than-expected increase was fuelled by gains in car sales and energy prices. Consumer prices rose 0...
|
|
|
|
|
|
|
|
