InterContinental Hotels Group (IHG) has announced plans to launch a new midscale brand aimed at more than 14 million guests in the underserved U.S. midscale markets, which is estimated to total $20 billion in annual industry revenues. Price points will be about $10 to $15 less than IHG’s Holiday Inn Express brand. The franchise is slated to roll out this fall, with construction beginning in early 2018 to ensure 2019 openings.
“[The new brand] addresses the needs of a rapidly growing and underserved segment and we believe it will shape the future of this unique midscale category. This launch will extend our track record of innovation and brand development, with a new offering that is right for our guests, our owners, and our shareholders,” says IHG CEO Richard Solomons.
The new brand will seek to approach everyday travel design from a new angle. Prototype franchise designs show the average lot size will span 1.5 acres, while the properties comprise 95 to 100 keys and a minimum of three stories. Guestroom configurations will include 65 percent 220-square-foot king accommodations and 35 percent 275-square-foot queen arrangements. Guestrooms will also be crafted to catch minimal noise and equipped with in-room climate control. Inviting public spaces will ensure intimacy with a variety of seating arrangements to accommodate all needs.
IHG co-CEO Elie Maalouf adds, “These travelers will often spend hours researching hotels to find a great and affordable lodging experience in this segment. When they can’t find it, they compromise, accepting lower standards and an inconsistent experience to get the price they want. We will change that with this new brand by delivering a superior guest experience that doesn’t currently exist at this price point.”
