InterContinental Hotels Group (IHG) has revealed the name of its new quality midscale brand, avid hotels, alongside a brand logo and renderings of the hotel exterior and guest room.
First introduced to owners at the IHG Americas Conference in June this year, avid hotels is franchise ready, officially marking the start of licensing in the U.S. for this new brand.
According to a statement from IHG, more than 150 owners have expressed interest in the brand demonstrating the demand and potential for avid hotels in this market segment. IHG expects the first avid hotels locations to begin construction in early 2018, and the first hotel is anticipated to open in early 2019.
“We built our Holiday Inn Express brand into a hugely successful, leading midscale brand. Now, with the introduction of avid hotels, we’re set to add another one and extend IHG’s leadership position in this segment. With 14 million potential customers looking for the type of hospitality avid hotels will offer, this new hotel brand represents a significant growth opportunity for IHG and our family of owners," said IHG chief executive officer Keith Barr.
According to IHG, this brand is designed for travellers "who want a hotel stay that meets their expectations for the type of hospitality they value most – the basics done exceptionally well" – at a price point expected to be about US$10 to 15 less than IHG’s Holiday Inn Express brand.
IHG chief executive officer, The Americas, Elie Maalouf added: “Our extensive consumer research and conversations with owners identified a clear opportunity to reach an important set of business and leisure travelers in a vastly underserved $20 billion segment of the U.S. midscale market. We applied our insights, expertise and scale to deliver an experience that features modern and stylish designs, superior guest rooms and public spaces and great service – all at an excellent value. I have no doubt avid hotels will continue IHG’s success in delivering what our guests want, while driving superior returns for our owners.”
New brand features shared for the first time included the avid hotels logo, featuring a signature checkmark, exterior rendering and public space plans showing an open and airy retail-like entry, communal spaces for guests to relax, work and eat, as well as guestroom renderings highlighting ample storage and smart in-room entertainment options. Complimentary breakfast, WiFi and marketplace options for guests on the go are available at avid hotels.
The design and operating model was developed by IHG in collaboration with an owner advisory board. Hotels will be designed for new build construction on an average lot size of approximately 1.5 acres and meant for an environmentally efficient design. The prototype design features 95 to 100 keys with a minimum of three stories.
Key elements of the initial owner offer will include a five percent royalty fee while the the first 100 signed license agreements will be eligible for a two percent fee discount in year one and one percent fee discount in year two (2/1 royalty fee reduction)
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