IHG Unveils ‘Brandhearted’ Approach
Company Focuses on Strengthening Brands, with Heavy Focus on Crowne Plaza
IHG CEO RIchard Solomons
There was no real fanfare for CEO Richard Solomons and President of the Americas Kirk Kinsell, both new to their jobs, but certainly not new to InterContinental Hotels Group. There was no headline-grabbing announcement about the biggest brand relaunch in the history of the industry, nor was a new brand or collection introduced.
The IHG 2011 Americas Investors & Leadership Conference at the Venetian and Palazzo resorts in Las Vegas was a largely quiet event, the focus on the UK-based company’s commitment to bettering its seven hotel brands and the creation of the word “brandhearted” to describe just that.
IHG CEO Richard Solomons, left, and President of the Americas Kirk Kinsell
“I want to be clear,” said Solomons to the 4,768 attendees at the opening general session, “brandhearted is not a new initiative, but a new name for a renewed focus. It’s not a project, it is a reinforcement of our commitment to making our brands work even harder to deliver higher returns for you.”
Solomons, in the lead role after Andy Cosslett resigned earlier this year, had previously held the titles of chief operating officer and chief financial officer. And Kinsell, previously the president, Europe, Middle East and Africa (EMEA), was just as comfortable, and familiar, after succeeding Jim Abrahamson, who also resigned early this year.
They, and the entire executive team, spent the better part of the three-day event that wrapped up Wednesday night talking about the commitment to IHG’s brands.
Crowne Plaza got the most attention. A three-phase, five-year plan was unveiled to remake Crowne Plaza into an upper-upscale brand to draw its new target customer, “the striver.” Phase One — “Freshen Up” — will focus on raising the product quality and consistency of the brand. “Move Up” aims to elevate Crowne Plaza to reach its new target customer with enhanced products and service training and to grow the brand in key resort and gateway-city markets. The final phase — “Shine” — will introduce new hallmarks like an improved lobby experience and new food & beverage innovations.
Janis Cannon, the brand leader for Crowne Plaza (and Hotel Indigo), said she expects to lose 10% of the 394-hotel portfolio during the repositioning.
A quick recap of other highlights from the event:
• There was more talk, but very little detail, about IHG’s plans for a new brand launch next year. Executives confirmed it would be a midscale select-service offering, positioned below Holiday Inn Express. New Chief Development Officer Joel Eisemann said the new brand would fill a hole in the IHG brand portfolio and not give franchisees a reason to develop with a competing hotel company.
• On Monday, before the conference kicked off, IHG announced its third-quarter earnings. RevPAR rose 9.5% in the Americas, outpacing the industry’s growth of 7.9%.
• Holiday Inn launched The Hub, a new design concept that integrates the lobby, restaurant and bar space. A bar/evening social occasion offers a new menu and signature drinks, while breakfast options include a chef’s station for made-to-order items or a grab-and-go alternative. A gaming area and outdoor cabanas allow guests to unwind in different fashions.
• Holiday Inn (in the midscale segment) and Hotel Indigo (upscale) were presented trophies for earning top honors in J.D. Powers & Associates’ guest satisfaction rankings.
• Hotel Indigo is market testing a self-serve coffee machine and wine-bar machine that automatically dispenses different pours. The machines are earning great reviews and revenues at the Midtown Atlanta location.
• Candlewood Suites is following Staybridge Suites with new interior designs created by graduated students from Savannah College of Art and Design. The extended-stay brand is also testing the “Lending Locker,” a large cabinet in the lobby where guests can borrow items on the honor system. Examples include a desk fan, extra lighting, a small vacuum, board games and more.
• Staybridge Suites is rolling out new menu items for its renamed evening reception, “The Social.”
* Including spouses, the 6,135 attendees at the event broke the companies record. Next year’s conference will be in Orlando after a two-year stint in Las Vegas.
• Glen Squres of Pacrim Hospitality Services was introduced as the chairman of the IHG Owners Committee, formerly the International Association of Holiday Inn owners (IAHI). Former Chairman Bill DeForrest passed the baton to Squires on Monday.
Related Stories
IHG Turns Attention to Crowne Plaza
Inside Look at Staybridge Suites
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