IHG wants to add 19 properties in the Atlanta area (source: The Atlanta Journal -Cns)
Metro Atlanta's recent boom in hotel construction will continue over the next three years, based on plans by InterContinental Hotels Group.
The company, which operates such brands as Holiday Inn, Staybridge Suites, Crowne Plaza and Hotel Indigo, plans to build 19 hotels in the region through 2010, said Steve Porter, president of the Americas for IHG.
And more could be coming. Porter said he sees additional opportunities for expansion in the metro area for the company's seven brands, which also include InterContinental, Candlewood Suites and Holiday Inn Express.IHG currently operates 54 hotels in the metro area.
"I don't think we have reached our optimal position," Porter said.
Plans for the additional IHG properties follow the recent influx of several national brands to Atlanta, including Rosewood, St. Regis and Loews. Others already in the city, like W --- which plans to have four local hotels by 2009 --- are expanding.
The 19 new hotels in the IHG pipeline would bring more than 1,000 jobs to the metro area, the company said.
In a wide-ranging interview on the hotel industry, Porter said Monday he was bullish on the health of the accommodations business despite the economic downturn. Americans, he said, are travelers, and he expects they will continue to go on vacations, although closer to home.
"People love to travel," he said. "They see it as a fundamental retooling mechanism."
The test will come this weekend, he said, when travelers hit the road for Memorial Day, the official start of the summer vacation season.
"We are rich with wonderful travel destinations in this country," he said. "While we like to think all 50 of our states are identical, they are very different."
But there are challenges for the industry, he said. Underwriters want to see more money upfront before backing loans, and the time between breaking ground and opening doors to customers is longer.
In addition, the United States is restrictive on many visas, and that makes it hard for many foreign visitors to travel to America, Porter said. That hurts the travel industry at a time when the United States is an attractive destination because of the weakness of the dollar against many international currencies, he said.
"The appeal to come to the U.S. is its overall affordability," Porter said. "That is not lost on folks outside the U.S."
The London-based company reported overall operating profits fell in the first quarter. But its Americas unit, which is based in Atlanta and accounts for 70 percent of the company's inventory, saw continuing revenue grow 14 percent to $230 million.
Porter said January and February were strong months, but March occupancy fell because Easter came late this year. April numbers rebounded some, he said.
Some of the hotel projects planned for Atlanta include a Crowne Plaza in Ben Carter's megadevelopment, Streets of Buckhead, and Hotel Indigo properties downtown and in College Park.
Porter declined to discuss rumors of the company opening an InterContinental Hotel --- the chain's flagship brand --- in Midtown. The accommodations community has been abuzz with speculation that InterContinental, Ritz-Carlton and Mandarin plan to build in the city hot spot.
"We have an InterContinental in Buckhead that continues to do very well," Porter said of the chain's Peachtree Street location.
PLANNED IHG HOTELS
InterContinental Hotels Group plans 19 new hotels in metro Atlanta over the next three years:
Crowne Plaza, I-85 and North Druid Hills, fourth quarter 2009
Crowne Plaza, Streets of Buckhead, fourth quarter 2010
Hotel Indigo, downtown, first quarter 2009
Hotel Indigo, College Park, second quarter 2009
Holiday Inn, Gwinnett Place, third quarter 2008
Holiday Inn, Alpharetta, first quarter 2009
Holiday Inn, Six Flags, first quarter 2009
Holiday Inn, Lithonia-Stonecrest, first quarter 2009
Holiday Inn, Woodstock, second quarter 2009
Holiday Inn, Howell Mill Road, third quarter 2009
Holiday Inn Express, Conyers, fourth quarter 2008
Holiday Inn Express, Cumming, fourth quarter 2008
Holiday Inn Express, Fairburn, fourth quarter 2008
Holiday Inn, Camp Creek, third quarter 2009
Holiday Inn, Suwanee, fourth quarter 2009
Holiday Inn, Acworth, first quarter 2010
Staybridge Suites, Midtown, second quarter 2010
Candlewood Suites, Camp Creek Parkway, third quarter 2009
Candlewood Suites, McDonough, first quarter 2010