IHG launches Atwell Suites, an upper-midscale brand

The brand will target an estimated $18 billion industry segment

Atwell Suites will be franchise-ready in the fall of 2019
Atwell Suites will be franchise-ready in the fall of 2019

InterContinental Hotels Group (IHG) revealed a new all-suites brand, Atwell Suites, at its Americas Investors & Leadership Conference in Las Vegas, last week.

The new upper-midscale hotel brand will target an estimated $18 billion industry segment and will operate with an average daily rate within the upper-midscale price point.

IHG designed the hotel brand for a longer stay of four to six nights, integrating flexibility throughout the property with spaces and programs that encourage social interaction.

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Atwell Suites properties will be efficient to build, operate and maintain, consistent with the company’s commitment to ensuring a positive owner experience. IHG expects the Atwell Suites brand to be franchise-ready in the fall of 2019 with the first hotels beginning construction in 2020 and opening in 2021. Initial development will be focused in the US market and the brand will be new-build led following a prototypical design.

Keith Barr, chief executive officer, IHG, said: “The Atwell Suites brand is tailor-made to meet the significant demand in the upper-midscale segment for a new all-suites brand. Our latest offer gives owners and guests something different to what’s out there today, a stylish suite with the flex for guests to work, socialise or explore over a four-to-six-night stay.

As we focus on accelerating our growth, the brand will further extend our leading position in the mainstream space.”

Key elements of the initial owner offer will include:

  • Target build cost between $105k – $115k per key (excluding land costs), with estimated site size of two acres
  • 5% royalty fee
  • First 100 signed license agreements will be eligible for a 2% fee discount in year one and 1% fee discount in year two (2/1 royalty fee reduction)

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