Reward nights - how are the hotels compensated by ICHG ?

Old Apr 20, 09, 3:00 pm
  #1  
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Reward nights - how are the hotels compensated by ICHG ?

Im wondering about the following point:

What do all the hotels get internally credited for reward nights?
We as reward night guests dont have to pay for them, but does the property charge ICHG headquarters with a certain percentage of the rack rate, a fixed amount or do they get nothing at all?

Im interested, because of the fact, that I booked 8 rooms on Reward Nights at an IC for an upcomming family celebration in August.
Just not sure, if they hate me now for that at this property if not receiving anything or if the hotel is getting a good deal of their headquarter for all those nights.
Has anybody of you an idea, how this works for the hotels?

Thanks in advance.
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Old Apr 20, 09, 3:10 pm
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The hotels get a low guaranteed rate for award nights (based on normal points/night I think--but IIRC PB stays do not differ from non-PB stays). If occupancy is high (at or above 95% I think), then the hotel gets reimbursed based on ADR, and those reimbursements can be quite high.

EDIT: See here-- http://www.flyertalk.com/forum/inter...rd-nights.html
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Old Apr 20, 09, 7:56 pm
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It depends on occupancy when you check-in.

I have seen my IC Le Grand reimbursed rate started with an unbelievable 50 Euro at booking to well over 200 Euro a month from check-in based on the info you see per the method described in that thread.
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Old Apr 21, 09, 1:18 am
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Just checked some of my old stays. In pre-crisis times the Barclay was compensated $340 per night, Le Grand: 280 per night.
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Old Apr 21, 09, 3:22 am
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Originally Posted by paulmoscow View Post
Just checked some of my old stays. In pre-crisis times the Barclay was compensated $340 per night, Le Grand: 280 per night.
Where do you get this information??
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Old Apr 21, 09, 3:29 am
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Originally Posted by nicolas75 View Post
Where do you get this information??
https://secure.ichotelsgroup.com/h/d...=true&eventId=

You will need to paste EventId at the end of the URL. It can be found in your "Non-Qualifying Stay" link, something like 04212009012345STAY0001
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Old Apr 21, 09, 3:04 pm
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Originally Posted by paulmoscow View Post
https://secure.ichotelsgroup.com/h/d...=true&eventId=

You will need to paste EventId at the end of the URL. It can be found in your "Non-Qualifying Stay" link, something like 04212009012345STAY0001
Interesting, thanks!

IC Thalasso Bora Bora (last month): $421.20/night
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Old Apr 21, 09, 4:30 pm
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Interesting !

Any definitive answer to how much they get compensated for BOGO use etc? (Have been told 'Nothing' by some staff at some hotels, but then told quite different by other staff at others).
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Old Apr 21, 09, 5:04 pm
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Wow, this is really interesting. So I guess the IC will be more happy than angry for me booking 8 rooms on reward nights.

Thanks for the informations.
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Old Apr 21, 09, 5:13 pm
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Originally Posted by lemieux66 View Post
Wow, this is really interesting. So I guess the IC will be more happy than angry for me booking 8 rooms on reward nights.
Maybe, maybe not. The reimbursement on a non-full night can be as low as $25-35 per room. After cleaning expenses, utilities, franchise fees (yes, the hotel is obliged to pay IHG royalty on the reimbursement amount), there is generally hardly anything left.

Hotels generally just sigh when multiple-room, multiple-night "free" rooms are booked. They won't give you a hard time or anything, but you can be sure they will be wondering if "it's really worth it."
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Old Apr 21, 09, 5:14 pm
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Originally Posted by Aisle Seat H View Post
Any definitive answer to how much they get compensated for BOGO use etc?
My understanding is that the hotels don't get compensated at all for BOGO certs.
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Old Apr 21, 09, 5:32 pm
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WOW!
interesting

just 52€ for a reward night at the IC Amstel in AMS
and over 1.000€ for 5 reward nights at IC IST using pointbreaks

then I found out that a 3 nights priceline stay at the Barclay netted 369$ at the hotel versus a 448$ (tax included) Priceilne total
and a 1 night stay at a CP was 60$ for IC versus a 84$ (tax included) Priceline tab

very interesting indeed

Last edited by maclover; Apr 21, 09 at 5:50 pm Reason: added Priceline stays
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Old Apr 21, 09, 6:13 pm
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The rate on a Rewards Night reservation is 5% off of Best Flex. We are only credited back a portion of that based on our annual ADR. If, however, our occupancy that night is 95% or higher then we are reimbursed an amount equal to that night's ADR. This is only for Holiday Inn, and it may be a little dated as they've changed some procedures and I haven't been bothered to check. Also, we don't get a check, we just get an amount credited to our monthly PCR billing statement.
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Old Apr 21, 09, 6:25 pm
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Originally Posted by maclover View Post
WOW!
interesting
Yeah...occupancy rates have a *huge* impact on the reimbursement rate.
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Old Apr 22, 09, 12:53 am
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Very interesting info. Thanks for the link and the confirmation of procedure by some posters.
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