New dual-brand hotel strategy for IHG
Group seeking operational efficiencies with planned hotels in USA
Intercontinental Hotels Group (IHG) has set out plans to open a number of dual-branded hotel developments across the USA, using combinations of a number of its brands.
Later this week it will open a hotel in Atlanta under the Crowne Plaza brand, with a Staybridge Suites hotel set to open in the same building by January 2016.
Other development plans for dual-branded IHG hotels include a Holiday Inn and Candlewood Suites hotel for Joliet, Illinois, a Crowne Plaza and Staybridge Suites hotel for San Diego and an IHG-managed Hotel Indigo and Holiday Inn Express hotel for Austin, Texas.
According to IHG, the dual-branded model will allow for operating efficiencies while at the same time not compromising the distinct offerings of each brand.
While they will typically share the same building structure or services such as fitness centres, pools and food & beverage facilities, some back-of-the-house operations may also be shared or separate.
“Dual-branded hotels are attractive for our owners because they are able to achieve construction cost savings, through shared facilities such as meeting space, swimming pools, fitness facilities and back-of-house areas, as well as operational savings, through shared services,” said Joel Eisemann, chief development officer, the Americas, IHG.
“With a dual-branded property, our owners are able to cater to many different stay occasions in the same location while generating a more profitable bottom line.”
In the Middle East, Marriott International is currently using a 'dual pack' strategy to expand its extended stay Residence Inn brand, pairing it with its Courtyard, Marriott (full serve) and Marriott Executive Apartments brands.