Hotel Investment Today reports the company announced a new midscale brand will join the company’s portfolio, hoping to drive existing properties from their current affiliation to IHG.
Midscale Brand Focused on Conversion Among Existing Hotels
With flyers returning to travel after the pandemic in a questionable economy, more people are prioritizing value. Midscale hotels are once again driving revenue from travelers who are on a budget and don’t need all the amenities of an upscale hotel.
According to IHG chief executive Elie Maalouf, the new, unnamed brand would be focused on the midscale audience, which would live a step below the Holiday Inn and Holiday Inn Express brands. He says he’s received interest from at least 80 hotel operators and 100 properties who would potentially convert to the new IHG brand. From a revenue standpoint, the conversions would be discounted by 25% compared to moving to a Holiday Inn Express.
“Conversions represent a major growth opportunity for us, generating around 40% of first half openings and signings globally,” Maalouf said, as quoted by Hotel Investment Today. “And we see an increasing desire from owners to quickly realize the benefits of IHG’s scale and strong enterprise.”
Current hotel conversions are only one step in IHG’s plan to grow their global footprint. The CEO is leading a drive to open 500 new hotels over the next decade, increasing their property count by 1,000 in the next 20 years.
Announcement Latest Step in Hotels Finding New Audiences
With hotels filling up once more, the move by IHG to find new guests is the latest among brands seeking to improve their offerings. In April 2023, Hyatt Hotels announced Hyatt Studios, a new brand catering to the Upper Midscale Market.
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Source: frugal travel guy