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SVC REIT switch their 103 IHG hotels over missed payment to Sonesta (Nov 30, 2020)

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Old Sep 18, 2020, 3:35 am
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Last edit by: khabah
List of hotels departing IHG for Sonesta:

InterContinental
InterContinental Toronto Yorkville
InterContinental San Juan
InterContinental Stephen F Austin Hotel

Kimpton
Kimpton Hotel Palomar Washington DC
Kimpton Hotel Allegro Chicago
Kimpton Hotel Palomar Chicago
Kimpton Hotel Monaco Portland
Kimpton Hotel Alexis Seattle

Crowne Plaza
Crowne Plaza Los Angeles Airport
Crowne Plaza Redondo Beach & Marina
Crowne Plaza San Jose Silicon Valley
Crowne Plaza Denver
Crowne Plaza Miami International Airport
Crowne Plaza Atlanta Perimeter at Ravinia
Crowne Plaza Atlanta Airport
Crowne Plaza Charlotte
Crowne Plaza White Plains Downtown
Crowne Plaza Columbus
Crowne Plaza Milwaukee West

Holiday Inn
Holiday Inn Anaheim Resort Area
Holiday Inn Atlanta Airport South
Holiday Inn & Suites Chicago O'Hare Rosemont

Staybridge Suites
Staybridge Suites Anaheim
Staybridge Suites San Diego Rancho Bernardo Area
Staybridge Suites Chatsworth
Staybridge Suites San Francisco Airport
Staybridge Suites San Jose
Staybridge Suites San Diego Sorrento Mesa
Staybridge Suites Sunnyvale
Staybridge Suites Torrance Redondo Beach
Staybridge Suites Denver South Park Meadows
Staybridge Suites Fort Lauderdale Plantation
Staybridge Suites Lake Buena Vista
Staybridge Suites Alpharetta North Point
Staybridge Suites Atlanta Perimeter Center East
Staybridge Suites Baton Rouge- University at Southgate
Staybridge Suites Markham
Staybridge Suites Austin Arboretum
Staybridge Suites Dallas Las Colinas
Staybridge Suites San Antonio NW Colonnade
Staybridge Suites Dulles
Staybridge Suites Vancouver Portland Metro

Candlewood Suites
Candlewood Suites Birmingham Hoover
Candlewood Suites Huntsville Research Park
Candlewood Suites Phoenix
Candlewood Suites Phoenix Tempe
Candlewood Suites Orange County Irvine East
Candlewood Suites Orange County Arprt Irvine W
Candlewood Suites Garden Grove Anaheim Area
Candlewood Suites Orange County Irvine Spectrum
Candlewood Suites Silicon Valley San Jose
Candlewood Suites Denver West Federal Center
Candlewood Suites Clearwater
Candlewood Suites Jacksonville
Candlewood Suites Miami Airport West
Candlewood Suites Atlanta
Candlewood Suites Des Moines
Candlewood Suites Chicago Libertyville
Candlewood Suites Chicago Naperville
Candlewood Suites Chicago O'Hare
Candlewood Suites Chicago Waukegan
Candlewood Suites Kansas City Overland Park
Candlewood Suites Wichita Airport
Candlewood Suites Wichita Northeast
Candlewood Suites Boston Braintree
Candlewood Suites Boston Burlington
Candlewood Suites Baltimore BWI Airport
Candlewood Suites Detroit Ann Arbor
Candlewood Suites Detroit Southfield
Candlewood Suites Detroit Troy
Candlewood Suites Detroit Warren
Candlewood Suites Minneapolis Richfield
Candlewood Suites St Louis
Candlewood Suites Charlotte University
Candlewood Suites Jersey City
Candlewood Suites Parsippany Morris Plains
Candlewood Suites Philadelphia Mount Laurel
Candlewood Suites Somerset
Candlewood Suites Albuquerque
Candlewood Suites Las Vegas
Candlewood Suites Nanuet Rockland County
Candlewood Suites Cleveland North Olmsted
Candlewood Suites Columbus Airport
Candlewood Suites Oklahoma City
Candlewood Suites Horsham Willow Grove
Candlewood Suites Pittsburgh Airport
Candlewood Suites Knoxville
Candlewood Suites Nashville Brentwood
Candlewood Suites Arlington
Candlewood Suites Austin Arboretum Northwest
Candlewood Suites Austin South
Candlewood Suites Dallas Fort Worth Fossil Creek
Candlewood Suites Dallas By The Galleria
Candlewood Suites Dallas Las Colinas
Candlewood Suites Dallas Park Central
Candlewood Suites Dallas Plano
Candlewood Suites Houston By The Galleria
Candlewood Suites Houston Clear Lake
Candlewood Suites @ City Centre Energy Corridor
Candlewood Suites Houston Westchase
Candlewood Suites San Antonio Northwest Medical Center
Candlewood Suites Salt Lake City Airport
Candlewood Suites Hampton
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SVC REIT switch their 103 IHG hotels over missed payment to Sonesta (Nov 30, 2020)

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Old Aug 27, 2020, 11:44 pm
  #31  
 
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I don't know what IHG is doing missing payments like this. This looks like a win for most parties- except IHG. Almost feels as if IHG wanted to get out of these hotels...

It will be interesting to see how Sonesta distinguishes the Candlewood and Staybridge properties as those two formats are quite different.

Huge coup for Sonesta. Hopefully they can run a quality operation. Sonesta will control its own destiny over the next couple years depending on how well they execute and how well they operate their hotels and loyalty program. Let's see what happens.

SVC is an interesting animal. They own most of TA/Petro Truck Stop real estate as well.
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Old Aug 28, 2020, 1:40 am
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Originally Posted by storewanderer
I don't know what IHG is doing missing payments like this. This looks like a win for most parties- except IHG. Almost feels as if IHG wanted to get out of these hotels...

It will be interesting to see how Sonesta distinguishes the Candlewood and Staybridge properties as those two formats are quite different.

Huge coup for Sonesta. Hopefully they can run a quality operation. Sonesta will control its own destiny over the next couple years depending on how well they execute and how well they operate their hotels and loyalty program. Let's see what happens.

SVC is an interesting animal. They own most of TA/Petro Truck Stop real estate as well.
As I mentioned previously in this thread, this was part of a $216 Million obligation IHG took on, having provided a $100 million upfront deposit which apparently was exhausted. Obviously, so bean counter ran the numbers and decided the costs exceeded the benfits. Besides, maybe IHG and Accor will merge and all will be forgotten.
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Old Aug 28, 2020, 7:19 am
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Bummer about the Kimpton Allegro in Chicago. That was a nice hotel. Tried the secret word promo there for the first time with my boss and co-worker. We did pretty well (a Raid the Bar credit plus a free appetizer in the restaurant).
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Old Aug 28, 2020, 6:00 pm
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Originally Posted by rbAA
As I mentioned previously in this thread, this was part of a $216 Million obligation IHG took on, having provided a $100 million upfront deposit which apparently was exhausted. Obviously, so bean counter ran the numbers and decided the costs exceeded the benfits. Besides, maybe IHG and Accor will merge and all will be forgotten.
Accor doesn't really have much presence in these places where IHG is losing properties... not sure what that has to do with this.
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Old Aug 28, 2020, 6:07 pm
  #35  
 
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Originally Posted by storewanderer
Accor doesn't really have much presence in these places where IHG is losing properties... not sure what that has to do with this.
Other than the fact that it's a currently circulating rumor, not much. Mentioned it in case you weren't paying attention.
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Old Aug 28, 2020, 6:28 pm
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Originally Posted by rbAA
Other than the fact that it's a currently circulating rumor, not much. Mentioned it in case you weren't paying attention.
If the rumor materializes, I am not sure adding the Accor US properties makes up for the loss of these properties. Helps, yes.
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Old Aug 29, 2020, 1:36 am
  #37  
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I have edited the thread title to reflect that the rumour now is confirmed for November 30, 2020.

FLYGVA
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Old Aug 30, 2020, 12:19 pm
  #38  
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Originally Posted by rbAA
As I mentioned previously in this thread, this was part of a $216 Million obligation IHG took on, having provided a $100 million upfront deposit which apparently was exhausted. Obviously, so bean counter ran the numbers and decided the costs exceeded the benfits. Besides, maybe IHG and Accor will merge and all will be forgotten.
Originally Posted by storewanderer
Accor doesn't really have much presence in these places where IHG is losing properties... not sure what that has to do with this.
Originally Posted by rbAA
Other than the fact that it's a currently circulating rumor, not much. Mentioned it in case you weren't paying attention.
Originally Posted by storewanderer
If the rumor materializes, I am not sure adding the Accor US properties makes up for the loss of these properties. Helps, yes.
Originally Posted by storewanderer
Accor doesn't really have much presence in these places where IHG is losing properties... not sure what that has to do with this.
Accor is still super weak in the US even after the Fairmont acquisition- as in 37 properties in the US. An IHG/Accor merger isn't going to really help IHG's presence in US markets; getting some Fairmonts might make up for losing some Kimptons I suppose, but it would be about very complimentary market weak areas/strong areas (and Accor's weakness in the US would be complemented by IHG).
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Old Aug 30, 2020, 1:02 pm
  #39  
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Besides the Kimptons, it's an interesting list. I noticed Radisson Blu Minneapolis (downtown, not the MOA one), which I would have assumed that Carlson WagonLit and its successors would have kept as a flagship of sorts. I found three ICs: Stephen Austin, San June (PR), and Toronto Yorkville. I might have stayed in the latter (and enjoyed several fire alarms in the middle of the night) and I know I've stayed in the Crowne Plaza that's vaguely near IBM research in the NYC suburbs (where my door didn't lock--impossible, in that anyone could enter without a key card, although I could use a safety chain device when inside the room--when I left the room and the front desk initially told me they would try to fix it the next day). Otherwise, the HPs, etc. aren't locations that I know with the exception of ATL airport, where I'm not sure whether I've stayed in North or South.

I also noticed that all of the Bonvoy properties seem to be legacy Marriott. I didn't see any Starwood brands.
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Old Aug 31, 2020, 6:33 pm
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Originally Posted by MSPeconomist
Is it ever the case in these situations that not all of the hotels owned by the entity are reflagged? Here there might be an advantage to reflagging the limited service properties to Sonesta, but some of the higher end properties might do better to stay in IHG.
Although it appears that all of the IHG hotels in question are really going to reflag to Sonesta, the answer to this general question is yes. In cases where there aren't weird revenue deals or grand schemes to bulk up an entire hotel group, it wouldn't be unusual for a company to only selectively reflag part of it's portfolio.

In theory, it's possible that Sonesta will try to convince SVC to convert some of their remaining hotels in the future. Unless they are stupid, however, SVC will only reflag a current Marriott, Hyatt, Radisson, or Wyndham property if they are convinced that the new flag will result in a huge increase in revenue (including the reflagging costs).

Originally Posted by MSPeconomist
Besides the Kimptons, it's an interesting list. I noticed Radisson Blu Minneapolis (downtown, not the MOA one), which I would have assumed that Carlson WagonLit and its successors would have kept as a flagship of sorts.
I worked at that Radisson for about a decade. I was flummoxed when I heard that the Carlson Companies had sold that hotel and the co-located office tower (Plaza VII). It was the site of the original Radisson hotel, first built in 1909.

I'm speculating, but I imagine a condition of the sale included language that ensures it remains a Carlson Company hotel (of some brand). It is considered a flagship hotel.

It's also a critical part of the franchise development department at Carlson. Whenever important potential franchisees visit the corporate office, they stay at the Radisson Blu Downtown Minneapolis. I know that was still happening as of a few years ago, which was the last time I visited and chatted with one of the executive-level managers.
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Old Sep 5, 2020, 8:52 am
  #41  
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A large number of these properties are limited service in suburbia. I'm guessing that Sonesta is betting that corporate travel won't return for years, so why pay IHG for a reservation system that is weighted towards corporate travel? Leisure travelers use OTAs more than individual hotel websites, and they don't care near as much about points.
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Old Sep 13, 2020, 3:55 pm
  #42  
 
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Well, sadly one of my favorite hotels is going to become a Sonesta... I've been treated well here and parked there before and after travel many times. The free parking is a big advantage. This would be the Crown Plaza Silicone Valley in Milpitas. Free shuttle service to SJC and also to destinations with a few miles. I had not been paying attention to the scuttlebutt and when I saw the info on their website (and booking page) it was a bit of a shock. As mentioned, Sonesta's loyalty program seems to be weak; what will make or break this hotel for me will be the parking situation! Most of the staff here has been great, and I hope they have a job waiting for them with Sonesta, if they wish.
The interesting thing is that there is currently another Sonesta Hotel in the same town, less then 2 miles away. It is being renovated, due to open shortly. I cant imagine there being 2 Sonesta hotels in the same area?

Last edited by retirementdreams; Sep 14, 2020 at 4:08 pm Reason: addition
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Old Sep 15, 2020, 1:40 pm
  #43  
 
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I rechecked hotel options today for Washington DC inauguration week in January and was very surprised to find a note in search results Kimpton Hotel Palomar will no longer be IHG December 1. Then I noticed my points balance increased and my reservation was no longer listed on my account page. Checked my email and found the notification and cancellation emails. Eleven whole minutes between notification and cancellation. Thankfully there is availability at Kimpton Monaco, but for 12,500 more points per night, 50k vs 62.5k. At this point, between IHG / Hilton / Marriott, the Kimpton Hotel Monaco is my only award option for this peak week.
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Old Sep 18, 2020, 3:36 am
  #44  
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Just to make this easier for everyone, I've added a Wiki to the top of this page with all properties leaving IHG for Sonesta, and separated them by brand.

khabah
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Old Sep 18, 2020, 3:39 am
  #45  
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Originally Posted by boxo
I rechecked hotel options today for Washington DC inauguration week in January and was very surprised to find a note in search results Kimpton Hotel Palomar will no longer be IHG December 1. Then I noticed my points balance increased and my reservation was no longer listed on my account page. Checked my email and found the notification and cancellation emails. Eleven whole minutes between notification and cancellation. Thankfully there is availability at Kimpton Monaco, but for 12,500 more points per night, 50k vs 62.5k. At this point, between IHG / Hilton / Marriott, the Kimpton Hotel Monaco is my only award option for this peak week.
I’d contact IHG and ask them to match the stay at their other IHG.
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