IHG to launch new midscale brand
Jun 11, 2017, 10:41 pm
#31
FlyerTalk Evangelist
Join Date: Jan 2005
Location: home = LAX
Posts: 25,933
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.
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.
But why BW with all the "no two hotels anywhere near the same" integration mess? Why not buy Wyndham Hotel Group instead? Or Choice Hotels (Choice Privileges is the only other program besides IHG with points + cash that works as "buying points" in the background!), except that Choice is not really integrated worldwide yet (for example, there's a separate Nordic Choice program in Scandinavia!).
Anyway, you and I are not making these decisions (nor have any input into those decisions), so why worry about them so much?
If you want a hotel program that's bonkers about buying brands, you're really in the wrong forum. Marriott was on a wild buying spree even before it swallowed up SPG, adding Gaylord, Delta, Protea, etc all in the last few years. It's up to 30 brands now (counting Marriott and Rtiz and SPG programs).
There were threads very similar to this one (in the Hilton forum) when Hilton announced some months ago that it was developing a lower midscale brand (lower than Hampton Inn is now, though perhaps closer to what Hampton Inn was when Hilton first acquired it?). Again lots of people on FT suggested they buy, but they had already made the decision to create a new brand themselves from scratch. Hilton didn't listen to us, and I don't see why IHG will either.
Last edited by sdsearch; Jun 11, 2017 at 10:51 pm
Jun 12, 2017, 8:46 am
#32
FlyerTalk Evangelist
Join Date: Dec 2006
Location: Pacific Northwest
Programs: UA Gold 1MM, AS 75k, AA Plat, Bonvoyed Gold, Honors Dia, Hyatt Explorer, IHG Plat, ...
Posts: 16,845
https://www.bestwestern.com/en_US/ho...rn/brands.html
Jun 12, 2017, 4:49 pm
#33
Join Date: Aug 2012
Location: VPS
Programs: IHG Diamond, Delta PM, Hilton Gold, Accor Gold, Marriott Silver
Posts: 7,265
I do think that if LQ is looking for a dancing partner, Accor is the most logical merge partner because there's pretty much no overlap between the two chains, and the North American middle market, while very competitive is also very glaring gap in Accor's footprint. We're talking, what? 3-4 Novotels in NYC and Quebec?
Jun 16, 2017, 2:09 am
#34
Join Date: Dec 2006
Location: in a cabin
Posts: 6,521
We tend to pit stop at HIX Bremen and HIX Dijon during our road trips to Southern France. It helps that the properties are new and clean of course.
Jun 16, 2017, 6:58 am
#35
Join Date: Aug 2012
Location: VPS
Programs: IHG Diamond, Delta PM, Hilton Gold, Accor Gold, Marriott Silver
Posts: 7,265
Same with the newer American HIXes. We've been very happy with Sequim, WA (nice roof top garden deck) and the new concept Tampa-Wesley Chapel.
And had our first time at a Staybridge Suites last week- huge nice rooms by London standards, two category Spire upgrade even though it was a points stay, and that same room can often be had for less than £200 a night with advance planning. Despite the low point earning of the brand, am looking forward to our next SBS already
And had our first time at a Staybridge Suites last week- huge nice rooms by London standards, two category Spire upgrade even though it was a points stay, and that same room can often be had for less than £200 a night with advance planning. Despite the low point earning of the brand, am looking forward to our next SBS already
Jun 16, 2017, 7:29 am
#36
Join Date: Sep 2012
Location: NW London and NW Sydney
Programs: BA Diamond, Hilton Bronze, A3 Diamond, IHG *G
Posts: 6,344
As someone who mainly stays in the UK and mainland Europe, give me a Hampton over an HI any day. As for UK HIXes, they are only good for pointsbreaks and Accelerate mattress runs.
Jun 16, 2017, 10:27 am
#37
Join Date: Mar 2007
Location: SJC/SFO
Programs: WN A+ CP, UA 1MM/*A Gold, Mar LT Tit, IHG Plat, HH Dia
Posts: 6,284
I'm skeptical about wanting to stay at this new "midscale" brand as it would presumably slot in below HIX-- which is classified as "upper mid-scale" per industry terminology. Yes, I know many travelers would quibble over that term personally, but it's a moot point. It's an accepted industry designation.
The thing is, I like HIX. Its quality level and consistency led me to make IHG one of my main programs for the last 6 years. I can book into an unfamiliar property with confidence I'll enjoy everything I need for a great basic stay. That's just where my standards are at nowadays. I'd be loathe to shop one category lower. Especially because if it's a cheaper, more basic HIX it'd probably be relative to HIX what Candlewood Suites is to Staybridge Suites. Nope.
The thing is, I like HIX. Its quality level and consistency led me to make IHG one of my main programs for the last 6 years. I can book into an unfamiliar property with confidence I'll enjoy everything I need for a great basic stay. That's just where my standards are at nowadays. I'd be loathe to shop one category lower. Especially because if it's a cheaper, more basic HIX it'd probably be relative to HIX what Candlewood Suites is to Staybridge Suites. Nope.
Jun 16, 2017, 12:36 pm
#38
Suspended
Join Date: Jul 2007
Posts: 4,477
the new HIX is nice. Have you stayed in the middlesborough property? It will be the new style HIX to come.
Jun 16, 2017, 12:51 pm
#39
Join Date: Sep 2008
Programs: IHG Platinum
Posts: 442
Jun 16, 2017, 3:15 pm
#40
Join Date: Apr 2008
Location: Germany, Austria
Programs: IHG Diamond Ambassador, ALL Silver,, Miles&More
Posts: 1,122
The following upgraded brands / categories I would suggest for IHG. Then there is space for a NEW midscale brand ("HIX light"):
- IC Grand (like Carlton) - luxury (Maybe "IC Empire"? Too much "Grand" already)
- IC (like Frankfurt) - upper upscale/premium
- CP (like new ones, e.g. Crowne Plaza Berlin Potsdamer Platz) - upscale full service, premium business. Eventually cobranded "by InterContinental"
- HI (like new ones, e.g. HI Berlin East or Zurichsee Switzerland) - upper midscale full service.
- HIX (like new ones, e.g. Berlin Alexanderplatz) - midscale extended limited service
- "HIX light" NEW "hip" midscale like "Tru" oder "Moxy" for smaller cities where IHG is not present - midscale low service
Others:
- Kimpton: not stayed yet, don´t know what to say about it, but I am not a "Boutique" fan
- Even: do not need
- Indigo: do not Need
- IC Grand (like Carlton) - luxury (Maybe "IC Empire"? Too much "Grand" already)
- IC (like Frankfurt) - upper upscale/premium
- CP (like new ones, e.g. Crowne Plaza Berlin Potsdamer Platz) - upscale full service, premium business. Eventually cobranded "by InterContinental"
- HI (like new ones, e.g. HI Berlin East or Zurichsee Switzerland) - upper midscale full service.
- HIX (like new ones, e.g. Berlin Alexanderplatz) - midscale extended limited service
- "HIX light" NEW "hip" midscale like "Tru" oder "Moxy" for smaller cities where IHG is not present - midscale low service
Others:
- Kimpton: not stayed yet, don´t know what to say about it, but I am not a "Boutique" fan
- Even: do not need
- Indigo: do not Need
Jun 17, 2017, 4:58 am
#41
Join Date: Jan 2017
Programs: BA SL, CX GR, IHG Plat Amb
Posts: 578
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...?
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...?
While IHG doesn't own every hotels, it is understandable that a throughout rebranding is not as easy.
Jun 17, 2017, 10:06 am
#42
FlyerTalk Evangelist
Join Date: Jan 2005
Location: home = LAX
Posts: 25,933
Jun 19, 2017, 3:44 pm
#43
Join Date: Dec 2016
Location: WAW
Programs: A3(*G), Marriott Platinum, Hilton Diamond, IHG Diamond Ambassador
Posts: 2,534
That's as maybe but here in the IHG forum I think any reasonable person would take HI as meaning Holiday Inn, rather than scratching their heads and wondering whether the poster is actually referring to a Hampton instead.
Jun 19, 2017, 3:52 pm
#44
Join Date: Dec 2016
Location: WAW
Programs: A3(*G), Marriott Platinum, Hilton Diamond, IHG Diamond Ambassador
Posts: 2,534
CP always struck me as a brand which didn't really know where to position itself. It's somewhat amorphous. When I think about what the defining characteristic of a CP is the only thing that comes to mind is that CP stands out for having some meaningful higher-tier status recognition - although I guess even that is becoming less true.
Jun 19, 2017, 7:36 pm
#45
FlyerTalk Evangelist
Join Date: Jan 2005
Location: home = LAX
Posts: 25,933
CP always struck me as a brand which didn't really know where to position itself. It's somewhat amorphous. When I think about what the defining characteristic of a CP is the only thing that comes to mind is that CP stands out for having some meaningful higher-tier status recognition - although I guess even that is becoming less true.
It's just confusing because IHG is a hotel family name that's hard to roll of the tongue.
Ie, the main full-service brand in the Hilton family is simply called Hilton. The main full-service band in the Marriott family is simply called Marriott. The main full-service brand in the Hyatt family is simply called Hyatt.
And the main full-service brand in the Wyndham family is simply called Wyndham.
But IHG didn't want call a brand IHG
, and so they had to break with this habit and give it a totally different name.