Catching Up with IHG’s Kirk Kinsell

Q&A: New President of Ameicas Region Discusses Job, Changes Coming to Crowne Plaza

As much change as InterContinental Hotels Group has been through in the first half of 2011, the company has maintained quite a bit of continuity. When CEO Andy Cosslett announced his resignation in March, Chief Financial Officer Richard Solomons was quickly chosen as the UK-based hotel company’s new leader. When Jim Abrahamson, president of IHG, The Americas, followed Cosslett out the door in June, Kirk Kinsell was right there to take over the big office in Atlanta.

Kinsell had served as president of IHG’s Europe, Middle East and Africa (EMEA) region for almost four years, but prior to that he was based in Atlanta as senior vice president and chief development officer for IHG, The Americas. He helped lead the launch of Hotel Indigo during that time, and long before that, as a senior vice president for Holiday Inn Worldwide, Kinsell helped lead the launch of Holiday Inn Express in 1991.

Although Kinsell says he’ll miss the scotch, lamb, cheese and wine he grew so fond of living in the UK, he’s excited to reacquaint himself with the Mexican food he loves in Atlanta. He recently took some time away from moving into his new office in Atlanta to discuss the new job, his experiences in London and what he sees ahead for some of IHG’s brands.

Were you surprised at Andy and Jim’s departures?
Surprised yes, shocked no. Both Andy and Jim have had conversations about some of their aspirations, so this was only logical. Andy felt the business was in a great place and Richard had earned the opportunity. Jim has always had this aspiration and to have this large platform, and maybe a public offering, is always exciting. They were great contributors, good friends and in the case of Andy I’ve stayed in touch. And Jim, he’s now one of my largest clients, so I love him. I would expect Interstate to continue to grow around the world with IHG.

Does the hotel industry differ in EMEA compared to the Americas?
Remarkably, there are a number of similarities. Those who are attracted to the hotel sector, like here, are very affable, outgoing and nice people. The differences were more what I call complexity and scale. EMEA is made up of 130 countries, and we’re operating in 55 of them. Certain markets have scale, and some just one hotel. There are different languages, cultures and in the Middle East, some very complex operations. There are some 600- and 800-room hotels with 25 food & beverage outlets. In the case I’m thinking of in Dubai, an InterContinental and Crowe Plaza on one platform, there are people from 51 different countries working there. It’s like a mayor as opposed to a GM running that place.

Was the EMEA region hit as hard by the recession and industry downturn?
It was all over the board. What’s great about a global company like IHG is although it can be challenging in a particular market, because of man-made or natural disasters, in another part of the world we could be storming. We had certain elements of Europe, Turkey for example, that had significant growth and extremely strong business. And in parts of the Middle East, until the Arab Spring, things had been chugging away. In other parts it was like a wave coming over the region, first to the UK and then across Western Europe, and then on a limited basis six to nine months later it hit the Middle East and Africa.

Is the book closed on the relaunch of Holiday Inn?
I guess if it’s like a book, it’s not closed. It was one of the most significant chapters ever written, but the Holiday Inn book continues. It’s more reinvigorated than it’s been since its launch. We have a product that I think on its basics are what customers look for, in consistency, a great guest experience, fantastic service — our overall guest satisfaction is strong and the numbers are supported with strong RevPAR performance. But we’re not standing still, we’re piloting a new social hub (in the lobby) that will help us redefine the midscale product.

At the annual conference two years ago, there was a lot of talk about some significant changes to the look and feel of the Crowne Plaza brand. Has anything more come of that?
We first had to build it on paper, then live and now we’re running customers and focus groups through it. We’re getting the thumbs up and learning about some things we could do differently. We have one property with all the (proposed) changes. You’ll hear about it sooner than later.

One thing we do well is flag up with our owners and our stakeholders and tell them where we’re heading. Right in the middle of the Holiday Inn relaunch (the economy crashed) and no one expected us to stay the course, everyone thought we’d blink. But we did it, and it’s a testament to the persistence of the company, ownership and general manager community to support the program.

We’re thinking about Crowne Plaza. A year later, and with a lot of research and insight, we’re now at the stage and process of talking to owners and engaging them with choices. It feels a bit like the Holiday Inn relaunch, but it’s not a global program. In China, Crowne Plaza is the most popular brand there, the fastest selling and it’s got great preference among all brands.

Any thoughts or plans for a new brand?
We continue to scan the marketplace. We’re looking at some products and for a regional brand for China. We continue to look at growth opportunities, but we have a lot of opportunities with our existing brands.

Any big goals or things you hope to accomplish as you take on this new role?
It sounds pretty boring, but just sticking to the plan that’s been so successful for IHG: focus on our brands, continue to do the heavy lifting sometimes, but more refining and keeping them as preferred brands and keeping them differentiated. Continue to drive our scale, loyalty programs and drive profits to owners’ pockets and have them reinvest with us.


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