$1 billion overhaul for Holiday Inn Chain

One of the most recognised hotel chains in the world, Holiday Inn, is to receive a $1 billion makeover, creating one of the largest corporate re-launches ever seen.

Intercontinental Hotels Group (IHG), its parent company, said the 3-year programme will create growth in revenue per available room of between 3% and 7%.

IHG’s Chief Executive, Andrew Cosslett, is to brief over 4,000 hotel owners today in Dallas which include upgrade to its reception areas, new customer service standards and new signs.

Furthermore, the makeover will include a new “scent and sound” comfort bedding and power showers.

Holiday Inn, Express by Holiday Inn and Holiday Inn Express, which have over 400,000 rooms in 3,125 hotels, has in progress a further 110,000 rooms in 942 hotels.

Over 700 new Holiday Inns have opened in the last 3 years and the re-branding, the first for Holiday Inn since it was set up in 1952 in Memphis, Tennessee, is expected to move at a rate of 150 hotels a month until the end of 2010.

Mr Cosslett said the minimum investment from each Holiday Inn owner would be $200,000. He added that the purpose was not to reposition the brand from its dominant mid-scale position in the hospitality market.

He concluded that there is a gap between Holiday Inn and its more upmarket rivals and there is no justification in that for the quality and experience you receive at hotels.

The first Holiday Inn was built by homebuilder Kemmons Wilson with the objective of providing inexpensive family accommodation for travellers within the USA.

By 1958, there were 50 inns across the USA and 500 by 1964. The 1000th Holiday Inn opened in San Antonio, Texas in 1968.By 1972, there were more than 1,400 inns worldwide.

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