Points Scrounger

Marriott's Town Place reminded me of Home2Suites. My H2S stays was "nicer" than my Candlewood one.

FlyerTalker688786

Even hotel is a flop. Hotel Indigo is close to a waste of time and money except that very few that can stand out. Hualuxe is expanding yet I heared some hotel owners are converting the original concept to Crowne Plaza instead. So they are going to waste yet more money to invent a new brand to compete on a already competitive world that other people already had the concept running?

What IHG should do is to buy Best Western, then convert BW Premier to Crowne Plazas, BW Plus to Holiday Inns and keep BW brand for other hotels that could not meet any brand standard as independent BW hotels.

Even better, why not reinforce the current brands and make them better???

fppmongo

Guys, I'm not just saying this based on IHG investor relations material. All other chains' IR material also views HI and HIX as competitors in the upper midscale segment.

Then google a bit to find classifications and analyses of the hotel market by professional third parties. They all rank HI as well as HIX in the upper midscale segment. I find zero controversy when I look at what the pros say.

Instead, controversial would be the ranking of Novotel (they are often ranked upscale but with a note that they are a notch below other brands in the upscale segment).

sdsearch

Not likely. BW operates in a way that's incompatible with most "big" hotel programs. Every BW property is "individually owned and operated" is the motto, but beyond that, every BW property seems to have been individually built, so there is no brand standard in appearance or hotel layout. Many BW hotels, including Premier and Plus, are two-story hotels with no elevator. How in the world is that compatible with turning them into Crowne Plaza or Holiday Inn?

In fact, most BW Plus hotels don't have a restaurant! Please tell me how that is compatible with turning them into a Holiday Inn?

You sound like someone who's hardly ever stayed at Best Western Plus or Premier hotels. Perhaps you stayed at one or two, and got a distorted view of how they are overall?

FlyerTalker688786

That is exactly the reason IHG needs a brand like BW. Individually built and run without participate in heavy marketing activities. If IHG needs expansion to compete with Mega Marriott, IHG needs large number of hotels and rooms expansion fast while not to affect its own core market. BW would be a better fit as the normal BW is in the lower end of market with few BW Premier has the potential of changing flag. To do that BW needs to get rid of BW Premier and Plus properties and keep the brand simple.

Of course if that happens IHG and BW will evaluate which property is meeting the CP standard and which is not. I don't think they will be stupid enough to convert every BW Premier to CP.

What IHG needs is a truly upscale brand like Mandarin Oriental or Shangri-La and a truly lower end market brand like BW or Super 8/Motel 6 a like. Anything in-between will only make internal competition situation worse as HI, HIX and CP are fighting in the crowded mid-scale plus Indigo, Even, Staybridge and Candelwood do fit in the broader market as well.

To have another mid-scale brand IMO is self hurting measures. Keep your core mid scale brand strong but expand in market you are less in control.

BW might not fit with IHG but I think the only way IHG can expand is to go up and to go down (market). If IHG has BW, IHG should use BW as Mercure in Accor, individual properties but not flashy. While Kimpton and Indigo being a little bit upscale, BW could be the lowest end of market for IHG.

bigbuy

You want true low end?
Here is my vote.... Knights Inn

SLGO

A bit surprised that Holiday Inn Express is a upper-midscale. Other than some of those, they are midscale at most IMO. On the other hand, it is sometimes hard to differentiate the class of Holiday Inn and Crowne Plaza. Both are quite midscale (or upper midscale) in quite a lot of places.

Regarding a new brand, I'd prefer a new one in between HI/CP and IC. IC in some places are just so much more expensive than the gap between them and HI/CP is so big. Another midscale brand however doesn't seem necessary.

submonte

What IHG does not have is a "Collection", such as Hilton´s Curio or Tapestry, or Starwood´s Tribute Portfolio. As BW is also a kind of collection of individual hotels I would agree generally with your idea. But BW has a lot of crappy 3* hotels, too, which would not fit in any standard. May be the Premier hotels would be ok.

Well I understood HIX should be upper midscale and HI should be lower upscale, but I have been to HIs and HIX which did not fulfill the criteria.

Regarding your proposal of a brand between HI(/CP) and IC: Absolutely yes, but I thought CP should be that brand? If not, for what is it good? This brand should be upgraded to be an "IC light" IMHO.

storewanderer

They probably need to fix Crowne Plaza instead of this. Crowne Plaza is basically a garbage brand in the US and while there may be a few good ones, there are many poor ones. They are about on par with a brand like Clarion which is not really a legitimate brand anymore.

I really struggle finding decent IHG properties to stay at in the US beyond newer HIX locations which are fine largely due to being newer (we will see how they are at age 20-25). I've also gotten to stay at a couple new build Holiday Inns that were actually very nice; Eugene, OR and St. George, UT come to mind.

I thought Holiday Inn was the mid-scale brand. It is a full service mid-scale hotel? Not as nice as a Hilton or Marriott, but full service...?

FlyerTalker688786

Yes you are right. HI is the full service MID-SCALE brand while CP is designed to be a more upscale HI (hens was named as Crowne Plaza by Holiday Inn initially).

Thankfully IHG was going through the UP programme for CP and try to make it a more upscale brand last two years. Very slowly but you will see improvement soon.

The problem IHG had from previous years is that IC was competing both in Luxury and Upscale category while CP was competing both in Upscale and upper mid-scale category. Hopefully this could be ratified with new property coming online. The older ones can not changed due to management or franchise contract unfortunately.

sdsearch

The problem is every BW is so different (from the next one), it would be hard to integrate most of them into any existing IHG brands. So they'd have to keep them as separate brands.

Thus I don't see why IHG would want to acquire a brand that doesn't fit the conecept of hotel tiers at all.

If they want something lower midscale to get them going quick, why not something like La Quinta? (AFAIK, it's owned by the same holding company that owns Hilton -- I forget if it's Blackstone or someone else -- does that same company own IHG?)

FlyerTalker688786

Some points to make:
1, lower end of market can not operate a FFP the same way IHG Rewards operate. Look at the case of Ibis in Accor.
2, Have independent hotels that do not fit your normal business circumstances is a win-win for both party. That is why IHG acquired Kimpton rather than rumoured Swissotel and Fairemont (bought by Accor instead)
3, BW is a global company with over 3000-4000 properties. That would push IHG back to the number one in the global ranking;
4, La Quinta was owned by Blackrock but now listed. It has financial problems as I followed this stock for over one year now. And the problem is that La Quinta overlaps with Holiday Inn Express and it is USA domestic brand, with virtually little international presence.
5, In contrast, BW is well known globally. However, its problem is, as you indicated, has no brand standard. IHG buy into BW can solve the problem by reflagging properties that are functional as CP or HI and HIX, while retain other lower end properties that can not be reflagged as BW. Problem solved. A parallel branding exercise with CP/HI/HIX sext the standard and a non-standard brand of BW dealing with smaller rural properties that require little investment.

When you expand by merge, you can go either:
A, merge with someone big in the same field to strength your market position; or
B, merge with someone in a different field to broad your market segmentation

If IHG needs to go down the Route A, it needs to merge with Hilton or Accor. Otherwise, BW is a better choice in different market segmentation while provide a large number of properties that would make IHG number 1 hotel group again.

Froggitt

Ive been to a CP in the US, and yes it was rather tired, fraying carpets etc.

In UK/Ireland, it is very much an upscale, business brand e.g. total refurbishment of all soft furnishings every few years. Very differentiated from HI which is more of a holidaymakers brand, very mid scale.

HIX I see as a minimal service, budget brand, along with Premier Inn and Travelodge over here.

submonte

This could be a way for the future IHG brand standards:
(From this perspective there is space for a midscale brand below HIX)


Crowne Plaza Berlin Potsdamer Platz

around two years old I think, like a premium Hilton (see the room photos, similar Hilton Berlin which was renovated some years ago, maybe a bit smaller room size but partly nicer, excellent buffet breakfast, they even offer Spires comp. club lounge I heard):

https://www.ihg.com/crowneplaza/hote...hotos-tours_cp


Holiday Inn Berlin - City East Side

nearly new, IHG Hotel of the year (Holiday Inn group). I would say that is full service and upscale. 24h business center.

https://www.ihg.com/holidayinn/hotel....nd.ct&qWch=0#

https://translate.google.de/translat...7490%2F3605218

In the Holiday Inn Hotel Berlin -City East Side a new Open Lobby Concept from Holiday Inn Hotels has bene realised the first time in Germany. All areas overlap each other loosely and pleasantly to you relax and enjoy your time at the Hotel.

Summary
Restaurants On-site: 1
Cocktail Lounge
24-hour Lounge
Room Service Available in Executive Rooms, Suites and Rooms from
6:30 AM - 11:00 PM


Holiday Inn Express Berlin Alexanderplatz

just opened, has got a bar which serves hot snacks incl. some typical from Berlin all day, a multifunctional lobby, business area, smart TVs, etc. Seems to be a kind of upgraded HIX.

https://www.ihg.com/holidayinnexpres...ax/hoteldetail

DenverBrian

America's Best Value Inn would give Knights Inn a run for its money.