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Development Quarterly - Issue 3 IHG Europe's Development, Design & Openings magazine

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D E V E L O P M E N T<br />

Q U A R T E R L Y<br />

<strong>IHG</strong> ® Europe’s <strong>Development</strong>, <strong>Design</strong> & <strong>Openings</strong> <strong>magazine</strong><br />

ISSUE<br />

3<br />

The Boom of Branded Boutique:<br />

Opportunities in the industry’s<br />

fastest growing segment<br />

Travel:<br />

France, her appetite for luxury and<br />

the endless appeal of Bordeaux<br />

Enter the Dragon:<br />

China outbound tourism and the<br />

importance of being China Ready<br />

Advantage Pricing:<br />

<strong>IHG</strong> ® launches Lowest Price Promise<br />

with Holiday Inn Express ®


Next Generation public space at Holiday Inn Express ® London – Park Royal<br />

Your next growth opportunity<br />

<strong>IHG</strong> ® is one of the world's leading hotel companies. Our scale, experience and<br />

dedication to quality ensure that your next growth opportunity will be supported<br />

every step of the way: from signing, through the design phase, to opening and<br />

operating a successful hotel.<br />

Whether you choose to franchise with us, or opt for an <strong>IHG</strong> management agreement,<br />

the diversity of our brand portfolio allows <strong>IHG</strong> hotels to meet guest needs whatever<br />

the occasion – ultimately adding up to better returns on your investment.<br />

<strong>IHG</strong> ® hotels host over 168<br />

million guest nights per annum,<br />

724,018 rooms in over 4,900<br />

hotels in nearly 100 countries<br />

around the world*.<br />

To find out more about developing your hotel with <strong>IHG</strong>,<br />

visit www.ihg.com/development<br />

*Data correct as at 30 June 2015


ISSUE 3<br />

contents<br />

Welcome to issue three 3<br />

Travel: France and the luxury market 4<br />

Exploring the dominant position of <strong>IHG</strong> ® in the country’s luxury segment<br />

and revealing why Bordeaux should be your next city break<br />

Interview with… Apurva Pratap 10<br />

Vice President of Distribution & Commercial Marketing, Europe, <strong>IHG</strong><br />

The Boom of Branded Boutique 12<br />

Looking at the benefits of branding in the fastest growing hotel segment<br />

Chinese outbound tourism: 21<br />

The facts and figures<br />

Enter the Dragon 22<br />

Highlighting the importance of being China Ready<br />

Meet… Rajesh Rana 26<br />

Director, Andras House<br />

How low can you go? Lowest Price Promise 28<br />

Launching <strong>IHG</strong>’s long-awaited Advantage Pricing model<br />

with Holiday Inn Express ®<br />

<strong>Openings</strong> 2015 30<br />

Holiday Inn Express – the Next Generation 38<br />

Unveiling the public space at Holiday Inn Express ® London – Park Royal<br />

<strong>IHG</strong> on the Road 42<br />

Showcasing <strong>IHG</strong>’s presence at the industry’s hottest events<br />

Events 45<br />

Dates for your diary<br />

A Day in the Life of… Gilles Goasdoué 46<br />

New Hotel <strong>Openings</strong>, Europe, <strong>IHG</strong><br />

What is Responsible Business? 48<br />

Shining a spotlight on corporate responsibility initiatives,<br />

from <strong>IHG</strong> ® Shelter in a Storm to the <strong>IHG</strong> Green Engage ® system<br />

Credits: Editor-in-Chief: Catherine A. Ross | Picture Editor: Rachel Fermie | Contributors: Philippe Bijaoui | Abigail Goldsbrough | Sandra Plant |<br />

Photography: Alain-Caboche.com | AntonStark.co.uk | FabriceRambert.com | Kuvatoimisto Kuvio Oy | PlainviewMedia.com | Anders Portman |<br />

Martin Sommerschield | VisualEye.biz | <strong>IHG</strong> <strong>Design</strong>: Marc Pattison | Tracey Gibbins (H&O) Print: Tim Sherringham (InnerWorkings)<br />

Cover image: InterContinental ® Marseille - Hotel Dieu<br />

For advertising enquiries, please contact europedevelopment@ihg.com<br />

01


MORE HOME THAN HOTEL<br />

Staybridge Suites® is the innovative, all-suites, extended stay brand from <strong>IHG</strong>®, designed for<br />

upscale business and leisure travellers who want to enjoy the best of home and hotel.<br />

Guests enjoy the friendliness of Staybridge Suites combined with homely public areas,<br />

in-suite cooking facilities and the complimentary hot breakfast served every day.<br />

The brand is perfect for any location where there’s demand for extended stay accommodation.


ISSUE 3<br />

editor’s letter…<br />

welcome to issue three<br />

Here we are at the tail end of summer. I hope you all found time to take a vacation and enjoy a break<br />

from the day-to-day. Summer is one of my favourite times of the year. It is all about family and<br />

friends enjoying long sunny days and beautiful balmy evenings. Something a little less enjoyable in<br />

the summer is construction site visits. Sweltering places where you sluggishly drag yourself around<br />

trying to concentrate on anything but the heavy-duty jacket and fur-lined boots. It is hot work but<br />

I can’t complain about one sweaty hour on site when construction teams do this all day every day to<br />

build our fantastic hotels.<br />

Now as we enter the final months of 2015, we are all feeling fresh from holiday and energised by<br />

everything we have achieved at <strong>IHG</strong> ® since the last issue of DQ. We are well on our way to attaining<br />

the goals we set ourselves for the year. Last month we unveiled a new and exciting set of refreshed<br />

Build brand standards for InterContinental ® , Crowne Plaza ® and Holiday Inn ® . Later this year<br />

the updated Hotel Indigo ® Build and Operate brand standards will be launched and work on the<br />

Staybridge Suites ® standards will follow suit. Brand standards serve to strengthen our message and<br />

ensure that they remain your brands of choice. They offer great inspiration about what <strong>IHG</strong> brands<br />

mean and where they are heading in the future.<br />

Developing great brands and financially successful hotels can only be achieved when teams work<br />

together to achieve a common goal. I want to thank the hotel owners and their teams for their ongoing<br />

partnership with <strong>IHG</strong> and praise the <strong>Development</strong>, <strong>Design</strong> & <strong>Openings</strong> team who work tirelessly<br />

with the support of the Legal, Corporate Finance, Brand, Operations, Sales and Marketing teams<br />

to open the right hotels in the right places. So far this year we have opened some fantastic hotels,<br />

including two impressive Hotel Indigo hotels in York and Helsinki, a flagship Crowne Plaza in Berlin -<br />

Potsdamer Platz, Holiday Inn hotels with show-stopping Open Lobbies in Frankfurt and Watford, and<br />

Holiday Inn Express ® Grimsby, which is the first new-build to feature Generation Four rooms. We have<br />

signed some excellent hotels including our first property in Mongolia with Holiday Inn Ulaanbaatar,<br />

a 322-room Holiday Inn in Moscow, six hotels in Germany and three new InterContinental hotels;<br />

Estoril, Lyon and Bordeaux. The latter two properties position <strong>IHG</strong> as the leader in France’s luxury<br />

segment, something we explore further in this issue of the <strong>magazine</strong>.<br />

Some other topics we cover include the importance of being China Ready and our newly launched<br />

Lowest Price Promise. These are two features that go to show at <strong>IHG</strong> we are continuously striving for<br />

improvement and working towards our goal to become number one.<br />

That just leaves me to say welcome to the third issue of DQ. I hope you enjoy it and I look forward to<br />

seeing you at events all over our region in the coming months.<br />

Philippe Bijaoui<br />

Vice President <strong>Development</strong>, Europe<br />

03


TRAVEL<br />

France’s Love Affair<br />

with InterContinental ®<br />

Hotels & Resorts<br />

With landmark InterContinental ® hotels in Lyon and Bordeaux<br />

signed over the last few months, <strong>IHG</strong> ® has cemented its<br />

reputation as the dominating force in France’s luxury hotel<br />

segment. So what is driving this demand and how has the<br />

InterContinental brand capitalised on France’s unwavering<br />

love of luxe?<br />

04


TRAVEL<br />

InterContinental ® Carlton Cannes<br />

“<strong>IHG</strong> now has InterContinental hotels in every main city in<br />

France” beams Willemijn Geels, <strong>IHG</strong>’s Associate Vice President of<br />

<strong>Development</strong> for Northern and Eastern Europe. “This is something<br />

to be excited about.” And she’s right. Having a leading presence in<br />

the most visited country in the world certainly is exciting.<br />

France plays host to at least 79m foreign tourists every year*. They<br />

come from around the world: Francophile Chinese flock there in their<br />

droves aided by the Schengen Agreement; visitors from the Middle<br />

East go to escape their soaring summer temperatures; curious<br />

Europeans go to see what all the fuss is about. From the fashion<br />

houses to the vineyards, France is the number one destination for<br />

good reason and its reputation is one of romance and luxury.<br />

05


TRAVEL<br />

InterContinental ® Bordeaux - Le Grand Hotel<br />

InterContinental ® Bordeaux - Le Grand Hotel


TRAVEL<br />

InterContinental ® Lyon - Hotel Dieu<br />

Willemijn elaborates, “France remains a very attractive country for<br />

tourists and the luxury segment is doing well. People associate<br />

France with luxury goods, fashion, fine wines and so on. In a<br />

sense they carry that on to their hotel stay too, so their luxury<br />

experience doesn’t end in the shops, it continues to their choice<br />

of accommodation. The iconic InterContinental brand in France<br />

is associated with luxury and level of service and as we grow we<br />

continue to strengthen that reputation.”<br />

It is that reputation that secured two of this year’s landmark signings<br />

for the brand. Signed in June, InterContinental ® Lyon - Hotel Dieu is a<br />

thrilling addition to <strong>IHG</strong>’s portfolio in Europe. Due to open in Autumn<br />

2018, it will operate under a management agreement with Crédit<br />

Agricole Assurances and will be developed by Eiffage. Part of a multipurpose<br />

development at the epicentre of a district undergoing total<br />

renovation, the project has been years in the making. <strong>IHG</strong>’s Director<br />

of <strong>Development</strong> France and North Africa, Brice Marguet explains,<br />

“It all started with a business lunch with the Lord Mayor at the MIPIM<br />

conference in Cannes. He invited ten hotel representatives to discuss<br />

the upcoming RFP to select a developer and a brand to operate the<br />

future Hotel Dieu. I attended it and promoted InterContinental as the<br />

right brand for the area. We had meetings, we had presentations,<br />

we focused on the InterContinental brand’s impressive estate in the<br />

country and after some time that’s how we got it.”<br />

“Signing InterContinental ® Lyon - Hotel Dieu<br />

and InterContinental ® Bordeaux - Le Grand Hotel<br />

absolutely positions <strong>IHG</strong> ® as the leader<br />

in the luxury sector in France.”<br />

“Willemijn Geels, Associate Vice President <strong>Development</strong>,<br />

Northern and Eastern Europe, <strong>IHG</strong><br />

“<br />

That impressive estate is what helped the brand win in Bordeaux too.<br />

Due to open by the end of the year, the glorious InterContinental ®<br />

Bordeaux - Le Grand Hotel will operate under a management<br />

agreement with Financière Immobilière Bordelaise. Dating back<br />

to 1776, the 130-room icon occupies a prime location on Place de<br />

la Comédie in the city that’s just been awarded Top Destination by<br />

European Best Destinations 2015. As the second project to get the<br />

thumbs up within a month, it has been a summer to celebrate at <strong>IHG</strong>.<br />

“Signing InterContinental Lyon - Hotel Dieu and InterContinental<br />

Bordeaux - Le Grand Hotel absolutely positions <strong>IHG</strong> as the leader in<br />

the luxury sector in France” Willemijn continues. “The fact we have<br />

very well-known historical properties in Paris, Cannes and Marseille<br />

spread the word for the InterContinental brand. They definitely helped<br />

us secure the latest properties.”<br />

France’s love affair with luxury tourism has gone from strength to<br />

strength. The long-anticipated affluent Chinese guest has started<br />

arriving and initiatives like the successful ‘Do you speak touriste?’<br />

campaign by the Paris Chamber of Commerce and Industry have<br />

gone a long way to enhance France’s position as a tourist-friendly<br />

must-visit destination. With hospitality competition fiercer than<br />

ever, <strong>IHG</strong> can be particularly proud of the InterContinental estate<br />

across a country that can claim the third largest income in the world<br />

from tourism*.<br />

* Luxury Society, February 2014<br />

07


TRAVEL<br />

InterContinental ® Marseille - Hotel Dieu<br />

The InterContinental ® Estate in France<br />

InterContinental Hotels & Resorts has won the World’s Leading Hotel Brand at the World Travel Awards for six years running.<br />

Here is how the brand’s estate in France pans out...<br />

InterContinental ® Lyon - Hotel Dieu<br />

Signed: June 2015<br />

Due to open: 2018<br />

Rooms & suites: 143<br />

Located on the bank of the river Rhône, this hotel is being converted<br />

from Lyon’s former Hotel Dieu, one of the oldest hospitals in France.<br />

It forms part of a listed group of buildings that dates back to the 17th<br />

Century, close to Place Bellecour in the very heart of the city.<br />

InterContinental ® Bordeaux - Le Grand Hotel<br />

Signed: July 2015<br />

Due to open: Q4 2015<br />

Rooms & suites: 130<br />

Dating back to 1776, this hotel is based on Place de la Comédie in<br />

the centre of Bordeaux, a city that was recently voted European Best<br />

Destination, 2015. F&B will be overseen by the Gordon Ramsay Group<br />

and will include the fine dining restaurant Le Pressoir D’Argent.<br />

InterContinental ® Marseille - Hotel Dieu<br />

Opened: May 2013<br />

Rooms & suites: 216<br />

Overlooking the Vieux Port, adjacent to the oldest district in Marseille<br />

known as the Panier, this historic hotel is housed in a listed historical<br />

monument dating back to the 18th century. With a spectacular terrace,<br />

it also boasts the first ever Spa by Clarins in Marseille.<br />

InterContinental ® Paris - Avenue Marceau<br />

Opened: September 2008<br />

Rooms & suites: 57<br />

Ideally located a short walk from the Champs Elysées and overlooking<br />

the Eiffel Tower, this boutique-style hotel is home to exclusive<br />

Le M64 Restaurant. Once the private mansion of Lord de Breteuil,<br />

this beautifully renovated property is at the very heart of Paris.<br />

InterContinental ® Carlton Cannes<br />

Opened: September 1991<br />

Rooms & suites: 382<br />

This hotel’s Belle Epoque façade overlooks the stunning Bay of<br />

Cannes. Situated on the Boulevard de La Croisette, famous for the<br />

Cannes Film Festival and designer shopping, it has its own exclusive<br />

beach restaurant and pier.<br />

InterContinental ® Paris - Le Grand<br />

Opened: 1976<br />

Rooms & suites: 540<br />

Located in the 9th arrondissement, close to the Louvre Museum,<br />

shopping and theatre, this luxury Paris hotel is truly an icon. In 2014<br />

the hotel’s famous ballroom the Salon Opera and Salon Berlioz<br />

underwent a €6million restoration over a five-month period.<br />

08


TRAVEL<br />

Why Bordeaux?<br />

Classified as a UNESCO World Heritage Site in 2007, Bordeaux<br />

earned the enviable title of 2015’s Top Destination by European<br />

Best Destinations earlier this year. It’s not hard to see why. A recent<br />

regeneration project has revived the city’s elegant dignity and<br />

injected new life into areas previously untouched. Chartrons is a<br />

case in point. Once an area of abandoned warehouses, gentrification<br />

has transformed it into the city’s trendiest neighbourhood, with<br />

contemporary design shops, clothing boutiques and delightful<br />

eateries. And food and wine are what makes this city tick. You can<br />

eat and drink yourself silly in a host of restaurants, from multiple<br />

Michelin-starred offerings to the diverse food stalls at Marché des<br />

Capucins. Bordeaux’s wine production remains world dominating,<br />

and no trip to the region is complete without a vineyard tour or two.<br />

The sweeping Garonne river, with its quaint riverbank homes and<br />

the beautiful Pont de Pierre, provides countless photo opportunities.<br />

So too does the Triangle-d’Or, which combines 18th-century charm<br />

with modern bustle. The Musée d’Aquitaine is a testament to the<br />

city’s illustrious heritage and no visit to Bordeaux is complete<br />

without taking in the unbeatable views from the Cathédrale<br />

Saint-André’s bell tower.<br />

Bordeaux unites classical and neo-classical architecture with urban<br />

development and attracts tourists and businesses from around the<br />

world. It presents a unique investment opportunity and <strong>IHG</strong> is very<br />

proud to be opening the InterContinental Bordeaux - Le Grand Hotel<br />

later this year.<br />

09


INTERVIEW


INTERVIEW<br />

Interview with…<br />

Apurva Pratap<br />

Apurva Pratap is Vice President of Distribution & Commercial Marketing, Europe and has been heavily involved in creating<br />

the <strong>IHG</strong> ® Lowest Price Promise. Before joining <strong>IHG</strong> in 2009 Apurva held Director positions in global marketing and strategy<br />

at Starbucks Coffee Co. after crafting a successful career in the finance sector while establishing his family’s upscale resort<br />

hotel in India. We caught up with him to talk about his work-life balance, his passion for Shakespeare and childhood plans<br />

for time travel.<br />

What is your typical day like?<br />

I get up between 6:30-7:00am and my wife and I get my daughter<br />

ready for nursery. She is my first child and is two-and-a-half now,<br />

so it is precious time for us. I get into the office about 9:00am,<br />

but I’m only there about half of the time, the rest is spent travelling.<br />

A big part of my job is talking to our owner community. I go to sales<br />

and marketing subcommittee meetings, IT meetings, country owner<br />

meetings, owner board meetings. It is critical to get owner input,<br />

buy-in and endorsement because that’s what makes or breaks<br />

anything we do!<br />

You must be very proud of what <strong>IHG</strong> has achieved with Lowest<br />

Price Promise.<br />

I am very proud. It is a project that has required many teams. It’s<br />

our sales team ensuring our distribution channels are working, our<br />

brand team creating the messaging, our marketing team making<br />

sure the right message is conveyed to the right people in the right<br />

place, it’s revenue management ensuring price integrity, it’s the<br />

hotel, it’s operations; everybody had their role to play. Something<br />

that really engages the whole company is great because the whole<br />

is greater than the sum of its parts.<br />

Tell us about your most recent project, the Lowest Price Promise.<br />

It was born out of finding a way to address our guests’ key needs.<br />

They were telling us they wanted the best prices using a simple<br />

channel so over time and a lot of work, we devised our Lowest Price<br />

Promise. It’s important to emphasise that this is a promise that has<br />

real substance. It delivers the best results every time and never<br />

breaks that promise. We have rolled it out with Holiday Inn Express ®<br />

first and only when we are absolutely confident that we can achieve<br />

that across the other brands, we will roll it out to them.<br />

You are a numbers and a people man. Have you developed that<br />

balance over time?<br />

I have been fortunate to work in some fantastic organisations. When<br />

I was a consultant in McKinsey & Co. I spent a lot of time with six<br />

to eight other organisations and in general you find the thing you<br />

are most proud of is the degree to which you’ve made an impact<br />

on individuals. Yes, I take satisfaction from making an impact on a<br />

company, but it’s the impact on people that is really gratifying.<br />

Have you always had leadership in mind?<br />

I love to work in teams but I like to see myself making an impact. In<br />

school I led the debate team, the dramatics team and inter-school<br />

and collegiate competitions. Leading has always given me a great<br />

sense of pride. I think a team can achieve more than a single person<br />

and in a leadership role you get the benefit of that broader impact.<br />

So do you think you’re competitive?<br />

Absolutely! Our team won a lot of those debates in school! I always<br />

carefully choose what I take on, but when I take something on I have to<br />

do the best job possible.<br />

“<br />

I take satisfaction from making an impact<br />

on a company, but it’s the impact on people<br />

that is really gratifying.<br />

“<br />

Lowest Price Promise has been a huge project, how do you maintain<br />

a healthy work-life balance?<br />

It is naturally balanced because I love what I do. If you really love<br />

your work you don’t get home too tired to enjoy being with your<br />

family. One thing I do, which might be good or bad practice, is go<br />

through emails when everyone is asleep. It is my one little piece of<br />

time for quiet reflection and the rest of my time is spent with people.<br />

Tell us about your love of theatre.<br />

I was very fortunate in my school to get involved in theatre at a<br />

very young age. I love the fact that you immerse yourself into<br />

someone else’s life and learn about them. Learning is something<br />

that motivates me in everything I do. I especially love Shakespeare<br />

because it is so evergreen. It was written so long ago but still so<br />

much of it is true today.<br />

What did you want to be when you were a child?<br />

I always loved to travel so I wanted to be a pilot. When I was six we<br />

went to America and the 20 hours from India felt like days. I knew<br />

that the world turned in 24 hours, so I always imagined that if we<br />

flew straight up into the atmosphere and then came straight down<br />

we could get there in 12 hours just by the earth’s turning, and then<br />

if we went against the turn we could cut that in half again. It seems<br />

I was devising time travel from an early age!<br />

What are you working on at the moment?<br />

I am working on something called Loyalty 2.0 which is about building<br />

relationships with all our <strong>IHG</strong> ® Rewards Club members at different<br />

levels of loyalty. It aims to move beyond purely transactional rewards,<br />

like free nights, to build relationships that make sure we understand<br />

what matters to every customer and consistently deliver on that.<br />

Everything starts with the customer and if you get that right you can<br />

achieve anything.<br />

11


BRANDS


BRANDS<br />

The Boom of<br />

Branded Boutique<br />

The boutique segment is the fastest growing in the industry<br />

and <strong>IHG</strong> ® is the global leader in the field. But why exactly is<br />

boutique seeing such a surge in popularity and what can<br />

branding bring to the traditionally independent market?<br />

For the last four years the boutique segment has outperformed the<br />

overall industry in demand, supply and growth. So when earlier this year,<br />

<strong>IHG</strong> announced the acquisition of Kimpton ® Hotels & Restaurants it was<br />

a significant move which, alongside Hotel Indigo ® , gives <strong>IHG</strong> the largest<br />

footprint in the global boutique hotel space. No mean feat considering the<br />

competition in a segment that’s enjoying so much success.<br />

Combined, <strong>IHG</strong>’s Hotel Indigo and Kimpton Hotels & Restaurants brands<br />

boast a total of over 200 open and pipeline hotels across 22 countries.<br />

The pace of growth of Hotel Indigo alone is far outstripping the competition<br />

and with Kimpton on board, <strong>IHG</strong> has taken another leap ahead of the<br />

game. Richard Solomons, Chief Executive Officer of <strong>IHG</strong> elaborates,<br />

“The distinctive and innovative Kimpton brand will fit perfectly into the <strong>IHG</strong><br />

brand family. The acquisition is another step in <strong>IHG</strong>’s well-established<br />

asset-light strategy of investing in high-quality growth, building on a<br />

strong track record of developing iconic global brands. We will use our<br />

scale, network of owner relationships, and powerful digital platforms to<br />

accelerate Kimpton’s growth both within the US and internationally.“<br />

Hotel Indigo ® Helsinki - Boulevard<br />

13


BRANDS<br />

Why Generation Y is key<br />

Over the last decade, hotels as an investment vehicle have grown in<br />

importance. As these last few years in particular have shown, boutique and<br />

lifestyle present a highly compelling investment case. Since the inception<br />

of ‘boutique’ in the early 80s, the concept has always been considered<br />

something of a niche market, a trendy flash-in-the-pan with no legs to<br />

stand the test of time. Thirty years on and several economic busts later,<br />

boutique is booming.<br />

The often misunderstood sector has crafted an identity, courted a new<br />

breed of guest and reaped the rewards. A core development in the sector’s<br />

success has been truly understanding the boutique patron. With every year<br />

that passes, more Generation Ys and Millennials make up hotel guests.<br />

This generational shift and evolving guest habits have contributed to the<br />

growth of the industry.<br />

Those in their 20s-50s, the techies-meet-creatives are now looking for<br />

more than traditional comfort and convenience for their business and<br />

leisure travel. They want authentic local adventure without the exhaustion<br />

of a backpack. Theirs is an Instagrammable stay; something sexy and<br />

stylish to brag about online. A Facebook check-in here and a #foodporn<br />

tweet there. Boutique is beautiful, and beautiful and social media go hand<br />

in hand. Dina Soliman, Director of Brand Management, Hotel Indigo in<br />

Europe lends her opinion, “Generation Ys and Millennials are certainly<br />

more open, less risk averse and keener to get out and explore and there are<br />

boutique brands that are geared to that. However, in my view the growth<br />

behind the boutique segment is wider than the Millennial generation pull.<br />

The growth and demand for this segment is across generations and in fact<br />

goes beyond our industry. The dominance of chains seen in our high streets<br />

means that every city in Europe starts to seem the same and people are<br />

looking to move away from that – hence the demand in boutique, one-off<br />

shops and unusual items.”<br />

Lorien Hotel & Spa, a Kimpton ® Hotel<br />

14


BRANDS


BRANDS<br />

Hotel Indigo ® York


BRANDS<br />

Hotel Indigo ® York, designed by matthews mee<br />

Size? It’s what you do with it that counts<br />

The concept of branded boutique might seem like an oxymoron.<br />

There is a romanticism in the independent and the unique and an<br />

understandable fear of a cloned and uniform experience should<br />

a boutique become a chain. From a developer’s point of view,<br />

there is a perceived risk of restrictive brand standards throttling<br />

any creativity from their hotel. And so with boutique hotels come<br />

more flexible design and tailored concepts. Personalised guest<br />

experience is far more important to the segment than negotiating<br />

a few square millimetres. This variety all adds to the uniqueness<br />

of the hotel. It all works to maintain the authenticity of the genre.<br />

Boutique hotels pride themselves on being not merely a hotel<br />

product. They look to add value to not only the building but the<br />

neighbourhood it sits in. Hotel Indigo has built this element into<br />

the core of its brand. Dina Soliman elaborates, “Just as no two<br />

neighbourhoods are alike, no two Hotel Indigo properties are alike.<br />

Each hotel’s neighbourhood story is woven throughout the guest<br />

experience, from the local cuisine, to the art, photography and<br />

architecture incorporated into the hotel’s design. The boutique space<br />

is about creating distinctive experiences and lasting memories and<br />

it’s important that isn’t lost by going with branded boutique.”<br />

Branded boutique is an evolving market that offers a compelling<br />

investment proposition. At the heart of the segment is the idea<br />

that with the backing of a global hotel company like <strong>IHG</strong>, a hotel<br />

combines the design cache of boutique with the operational<br />

credibility of a large hotel chain. Nobody wants to sacrifice the<br />

unique appeal of the sector and by understanding and catering for<br />

a new breed of guest and identifying the make-up of the segment,<br />

branded boutique ensures that nothing is lost and, as the figures<br />

show, everything is gained.<br />

17


Hotel Indigo ® Helsinki – Boulevard<br />

BRANDS


BRANDS<br />

Number crunch:<br />

– Hotel Indigo ® : 62 hotels with 64 in the pipeline<br />

– Kimpton ® Hotels & Restaurants: 66 hotels with 15 in the pipeline<br />

– Demand growth for boutique hotels is almost double that of the total industry<br />

– Growth in room count is almost 4x the industry average<br />

– <strong>IHG</strong> has tripled the presence of Hotel Indigo outside of the US in just over three years<br />

– Hotel Indigo hotels get an average rating of 4.5 in Europe on TripAdvisor<br />

All data as at 30 June 2015<br />

19


20


INFOGRAPHIC<br />

$35,000<br />

per annum<br />

The threshold of household<br />

income in China that<br />

makes international<br />

travel affordable<br />

70%<br />

of outbound travel from China<br />

is to major cities<br />

62%<br />

of total<br />

outbound<br />

travel<br />

will be<br />

leisure<br />

tourism*<br />

97m ARRIVALS<br />

Annual arrivals from China<br />

to global destinations*<br />

61%<br />

The expected<br />

per-night increase<br />

in money spent<br />

by Chinese tourists*<br />

53%<br />

of disposable income<br />

currently spent on travel<br />

150<br />

CITIES<br />

Chinese cities<br />

with a population<br />

of over 1 million<br />

Additional volume of Chinese visitors arriving by 2023<br />

MILAN +108%<br />

LUCERNE +86%<br />

WARSAW +123%<br />

FLORENCE +120%<br />

ROME +181%<br />

FRANKFURT +100% VENICE +127%<br />

PARIS +93% LONDON +174%<br />

MUNICH +105%<br />

China is now recognised as the largest travelling nation and contributor to hotel revenue growth<br />

in the world. The Chinese outbound market preference is evolving towards long-haul, leisure-driven<br />

travel, primarily to cities. Urbanisation drives GDP growth and household income levels. <strong>IHG</strong> ® China<br />

Ready accreditation enables hotels to deliver a great experience for Chinese guests.<br />

*by 2023<br />

21


TRENDS


TRENDS<br />

Enter the Dragon…<br />

The importance of being China Ready<br />

In 2014 the Chinese became the largest nation of outbound travellers globally, overtaking the U.S. and Germany.<br />

Between now and 2020, the number of Chinese travellers is expected to grow to over 150 million*. We look at how<br />

Europe is preparing for this influx of new guests and what <strong>IHG</strong> ® is doing to welcome this most lucrative of markets.<br />

Between 2000-2010, the Chinese economy tripled in size. It is now<br />

the world’s second largest economy, with only the U.S. standing<br />

in its way of the top spot. More people in its total population of<br />

1.3 billion are enjoying financial security than ever before. And<br />

it’s not just those in the major cities who are influencing this<br />

boom. Tier two and three cities are also driving growth and the<br />

middle classes have expanded massively. The number of Chinese<br />

households earning above $35,000 per annum – identified as<br />

the income level at which international travel becomes more<br />

affordable – rose by 21 million from 2003 to 2013. An additional<br />

61 million households will pass this threshold by 2023.**<br />

With this rise in salary, the average family has disposable income<br />

that was unthinkable only a decade ago. This, coupled with more<br />

relaxed travel restrictions and simplified visa processes, it’s no<br />

wonder the Chinese are flocking to Europe in their millions.<br />

The UK, France and Germany look to benefit the most. According<br />

to ‘The Future of Chinese Travel’, a joint Oxford Economics and <strong>IHG</strong><br />

study, London looks set to double the number of Chinese visitors<br />

it receives between 2013 and 2023. That equates to over 60% of all<br />

Chinese arrivals to the UK. France is ranked at number two for top<br />

long-haul arrivals and German cities Munich, Frankfurt and Berlin<br />

feature among the top city nights in Europe with absolute growth of<br />

200,000, 199,000 and 169,000 nights respectively.<br />

The traditional image of the Chinese tourist is one of touring en<br />

masse to the most crowded tourist hotspots. But today, that trend<br />

is changing. Drew Davy, Programme Director of <strong>IHG</strong>’s China<br />

Outbound project throws some light on why, “It’s not that those<br />

huge bus tours are stopping. They still have a place for first-time<br />

travellers on multi-country tours. But what we’re seeing now is<br />

once they have made that step, their confidence is boosted and<br />

many more people are travelling solo or in smaller groups of<br />

friends and family.”<br />

In fact 71% of Chinese travellers are now choosing independent<br />

travel over the 29% opting for group tours.* In addition to leisure<br />

tourism, the growth of business travel also accounts for an increase<br />

in the number of Chinese travelling solo. This adds to the number<br />

of rooms Chinese guests are booking for individuals, as opposed to<br />

family, friends and partners sharing a room. As a major business<br />

hub, London is estimated to be the largest European market for<br />

Chinese room nights.<br />

This evolution in Chinese traveller comes with its own demands.<br />

Where once it was just the hotels on the tour trails that were versed<br />

in hosting Chinese guests, now more hotels need to be ready to<br />

cater for the growth of this new type of traveller. The industry as a<br />

whole has had to react and earlier this year <strong>IHG</strong> launched its own<br />

response with the China Ready programme.<br />

Offered across two tiers, China Ready is a self-accreditation<br />

programme that acts as a guarantee to Chinese guests that their<br />

stay will be everything they want it to be. “Being China Ready is<br />

a mark of distinction” Drew points out. “Hotels merited with the<br />

China Ready stamp are so much more likely to attract the Chinese<br />

market and word of mouth is everything. We are also affiliated with<br />

a Chinese government agency called the China Tourism Academy<br />

(CTA), which adds a huge amount of credibility.”<br />

Presented in an Essential and Premium tier, the programme was<br />

devised after extensive research into what Chinese tourists want<br />

from their stay. From the food & beverage (F&B) offering to the<br />

TV channel choices to accepted payment methods. But just as<br />

important as the services is the personal etiquette, something that<br />

both tiers of the programme cover.<br />

23


TRENDS<br />

“Understanding the culture is absolutely critical to delivering a<br />

good experience for a Chinese guest” Drew says. “You could easily<br />

be in a situation where you sit a Chinese guest at table number<br />

four, which is decorated with chrysanthemums and when they go to<br />

pay, you take the credit card from them with one hand. In just those<br />

three instances you could damage the Chinese experience because<br />

number four is unlucky, cut flowers aren’t good and presenting<br />

and receiving items with one hand is disrespectful. You might think<br />

you’ve done a great job, but you’ve undermined several aspects of<br />

their culture, so it’s deeply important to understand those nuances.”<br />

While all this might sound obvious, the number of hotels getting<br />

it wrong remains high. Although the Chinese arrivals have been<br />

on the cards for a while, the hotel industry has been slow to<br />

respond, but <strong>IHG</strong> is in a powerful position to offer a solution.<br />

As <strong>IHG</strong>’s Kenneth Macpherson, Chief Executive Officer of Greater<br />

China told us, “As the first international hotel company to enter the<br />

market in mainland China, we have an unparallelled 30 years of<br />

in-depth knowledge and experience with the Chinese consumer.<br />

This puts us in a unique position to create a China Ready programme<br />

that enables our hotels around the world to deliver a great guest<br />

experience to our Chinese guests.”<br />

Drew continues, “We’ve got the Welcome Chinese website which<br />

has an affiliation with the CTA – nobody else has got that. We’ve got<br />

cultural training – nobody else has got that. We’ve just got better<br />

all-round execution and overall a better offer on the table.”<br />

24


TRENDS<br />

The two tiers on offer both present a healthy return on investment to<br />

owners*. The Essential tier ensures hotels have the key infrastructure<br />

to support the guest experience. This includes Chinese TV channels,<br />

China Union payment methods, Chinese-speaking staff at the front<br />

desk (or via 24/7 phone support) and condensed cross-cultural<br />

training. The Premium tier offers that much more, with all restaurant<br />

and in-room menus translated into Chinese, a full Chinese F&B<br />

offering and extensive cultural training, something Drew feels is<br />

key for both tiers, “We felt it was an important element to offer the<br />

cultural training in both tiers as opposed to just one. It isn’t just,<br />

‘Here’s the teas, here’s the food’. Understanding relationships,<br />

respect and all the other cultural elements is make or break for a<br />

good guest experience.”<br />

Being China Ready is imperative, and <strong>IHG</strong>’s programme is putting<br />

hotels well on the way to reaching this lucrative market. Drew sums<br />

it up, “One fifth of the population of the world is Chinese and it’s<br />

growing. The choice is to become China Ready and draw in that<br />

market right now, or wait for them to come and then play catch up.”<br />

Number crunch:<br />

The ten most important things to Chinese guests*<br />

1. Free WiFi<br />

2. China UnionPay / Alipay accepted<br />

3. In-house Mandarin speaking staff available 24/7 or phone<br />

support 24/7<br />

4. Translated travel / tourism guides<br />

5. Hotel website in Mandarin<br />

6. In-room food service options<br />

7. Chinese TV programmes<br />

8. Chinese breakfast<br />

9. Translated welcome material<br />

10. Chinese newspapers / <strong>magazine</strong>s<br />

Well, when you put it like that...<br />

* ‘Is Your Hotel China Ready?’, <strong>IHG</strong>, 2015<br />

** ‘The Future of Chinese Travel’, Oxford Economics report for <strong>IHG</strong>, 2015<br />

25


INTERVIEW


INTERVIEW<br />

“<br />

“<br />

Holiday Inn ® is the class leader in its sector so<br />

coupled with the <strong>IHG</strong> ® mechanisms, we decided<br />

it was the brand to go for.<br />

Meet…<br />

Rajesh Rana<br />

Rajesh Rana is Director at Andras House, leading hotel developer and operator in Northern Ireland. Founded by his<br />

father, Lord Diljit Rana, in 1981 the company specialised in office and restaurant development before opening their first<br />

hotel in 1987 with the Holiday Inn ® brand. Based in Belfast, they have a total of six hotels in their portfolio. Their latest<br />

project is a Days Hotel conversion to Holiday Inn ® Belfast City Centre. We caught up with him at the Owner’s Association<br />

forum at the <strong>IHG</strong> ® headquarters in Denham, UK.<br />

When did you first work with <strong>IHG</strong>?<br />

After our very first Holiday Inn, we did a Holiday Inn Express ® in<br />

1996, which I believe was one of the first franchise Holiday Inn<br />

Express hotels in the UK. We refurbished that in 2010 and it’s doing<br />

very well. At the moment we’re repurposing the Days Hotel to be a<br />

Holiday Inn, which we’re very excited about. We’re spending £2.5m<br />

really upgrading it. It’s like a new hotel.<br />

Why did you decide to go with Holiday Inn for that location?<br />

Holiday Inn is the class leader in its sector so coupled with the <strong>IHG</strong><br />

mechanisms, we decided it was the brand to go for. We are used to<br />

working with Holidex and the people are easy to work with. We’ve<br />

worked with <strong>IHG</strong> for years and contribution is a key thing. We’re<br />

already talking to the global sales team about key contracts that we<br />

could bring to Holiday Inn Belfast City Centre and they’re keen to get<br />

on top of it.<br />

What does <strong>IHG</strong> bring to the table?<br />

I think <strong>IHG</strong> probably has the balance right in terms of flexibility.<br />

Some hotel companies are too flexible and they have some poorly<br />

performing assets that they need to get rid of but don’t do anything<br />

about. Some are very prescriptive but I would probably say <strong>IHG</strong> gets<br />

the balance right. The Owners Association forum is a great platform<br />

that other brands don’t really have and now they’ve got the Key<br />

Performance Indicators, it’s easier to pinpoint elements that you<br />

need to focus on.<br />

What do you think are upcoming trends in the industry?<br />

Offering guests the best price through the Advantage Pricing model<br />

is such a no brainer. It seems obvious that this has to happen and<br />

technology is driving it in that direction, but nothing has been done<br />

about it until now. I think it is genuinely pioneering because it wasn’t<br />

something the owners were pushing for but when you realise that<br />

your own hotel is being undersold by someone else, it makes you<br />

sit up in shock. We’re very pleased about it.<br />

What is the market like in Belfast at the moment?<br />

The market in Belfast has grown quite a lot. Back office, IT and oil<br />

rigs are helping to build the economy, but there’s also tourism and<br />

business travel. Waterfront Hall is a great big concert hall which they’re<br />

now extending to what will be a world-leading conference centre.<br />

The Holiday Inn Belfast City Centre fits right into that market because<br />

delegates like to stay in branded hotels. And they don’t get much more<br />

recognisable than Holiday Inn.<br />

How did you get to where you are today?<br />

I have a degree in Physics, a degree in Architecture which takes about<br />

six years and now I make hotels! I suppose I’m quite a methodical<br />

person, so I like to know where I want to get to, what are the steps<br />

I have to do to get there. I wouldn’t claim to be an expert. I’m learning<br />

and that’s the key! If you’re not learning, you’re not doing it right.<br />

What is the Andras House development strategy?<br />

Because all of our hotels are in Belfast, our strategy is to capture all<br />

of the main brands in one area. Some company portfolios are made<br />

up entirely of Holiday Inn Express but they’re all across Europe.<br />

Because we’re not geographically dispersed we feel that we have to<br />

be brand dispersed instead. So we have <strong>IHG</strong>, Accor and Wyndham<br />

brands and that suits us very well. It’s a defensive strategy – if we<br />

didn’t do it, someone else would.<br />

And where do you see Andras House going in the future?<br />

I think as a company we have really invested in a lot of the<br />

products. The Holiday Inn Belfast City Centre is fully refurbished,<br />

the Holiday Inn Express ® Belfast City – Queen’s Quarter is fully<br />

refurbished, our other assets are either new or fully refurbished.<br />

I see us starting to focus more on the operational side of things.<br />

Obviously we are an operating company, but now that we have got<br />

the assets where we want them, we need to work on the human<br />

assets and the skillset. That’s probably the next challenge.<br />

27


TRENDS<br />

Lower<br />

than a<br />

sausage<br />

dog having<br />

a lie down.<br />

28


TRENDS<br />

“<br />

“<br />

The initiative is important and the aim is clear: Lowest Price<br />

Promise guarantees that loyalty club members will get a lower<br />

price than anywhere else when booking directly with <strong>IHG</strong> ® .<br />

Launching the Lowest Price Promise – a pledge to guests<br />

Earlier this year <strong>IHG</strong> ® launched Advantage Pricing, a discounted rate offered to <strong>IHG</strong> ® Rewards Club members if they<br />

book direct. Sounds simple enough, but this Lowest Price Promise is a result of substantial research into online<br />

travel agencies, loyalty clubs and most of all improving the guest experience.<br />

It’s been almost 20 years since Microsoft launched online travel<br />

agency Expedia. After a slow start, what followed was an explosion<br />

in online travel agencies (OTAs) which has been nothing short of<br />

an industry revolution. As access to the internet grew, so too did<br />

people’s confidence in internet security, leading to more online<br />

bookings. But the business model really expanded when hospitality<br />

called for a much needed boost in the wake of 9/11. Coupled with<br />

increasingly cost conscious customers following 2008’s economic<br />

crisis OTAs have, in a relatively short period of time, grown beyond<br />

all predictions. Last year alone, they took a combined total of<br />

$278 billion in bookings*.<br />

Now <strong>IHG</strong> has launched its very own way to connect with today’s new<br />

breed of savvy guest. Advantage Pricing piloted in May with Holiday<br />

Inn Express ® in the UK & Ireland. Currently direct channels have<br />

price parity with OTAs, but by offering rooms through the closed<br />

user group of <strong>IHG</strong> Rewards Club, <strong>IHG</strong> is able to offer the best value.<br />

The initiative is important and the aim is clear: Lowest Price Promise<br />

guarantees that loyalty club members will get a lower price than<br />

anywhere else when booking directly with <strong>IHG</strong>. Vice President of<br />

Distribution & Commercial Marketing in Europe, Apurva Pratap<br />

elaborates, “Lowest Price Promise was born out of finding a way to<br />

make things simple for our guests and addressing their key needs.<br />

Everything starts with the customer and customers have been<br />

telling us they find it increasingly difficult to determine where to<br />

get the best price for our hotels. The distribution landscape has got<br />

much more complicated.”<br />

Research commissioned by Holiday Inn Express backs this up.<br />

The average British person spends approximately eight days a year<br />

searching for the best deals. Out of the 2,000 people surveyed,<br />

75% were ‘frustrated’ when searching for the lowest price for<br />

holidays, hotels, mobile phones and bills. A massive 69% felt there<br />

were too many price comparison sites, which left them feeling<br />

muddled and unsure whether they had got the best deal or not. It’s<br />

clear that trust is a major issue between the customer and booking<br />

channel. Apurva continues, “What we want to make sure of is when<br />

we offer Lowest Price Promise it is a promise with real substance<br />

which is true every single time, so there can never be an occasion<br />

where that promise is broken.”<br />

Direct booking channels include the <strong>IHG</strong> website, the Central<br />

Reservations Office and the mobile application which is a route to<br />

purchase that is only going to increase. Last year, market research<br />

company Euromonitor estimated that by 2017 over 30% of online<br />

travel bookings will be made on mobile devices. If this trend<br />

continues, <strong>IHG</strong> can be confident that its app will deliver as it was<br />

recently voted as the best iOS app in the world by Apptentive.<br />

As <strong>IHG</strong>’s largest estate, the Holiday Inn Express brand was an<br />

obvious choice for piloting the scheme. It is also the brand that<br />

customers most associate with simplicity, so aligning the booking<br />

process with that ‘Simple. Smart. Spot On.’ messaging became the<br />

priority. But what of the plans to roll it out across <strong>IHG</strong>’s brand family?<br />

“We are working through how we can create that same simplicity<br />

and are able to ensure that without question, there will never be<br />

an instance where you can find a lower price through some other<br />

means” confirms Apurva. “When we are confident that we are able<br />

to achieve that across all the brands, we will do so.”<br />

It is a clever solution that has been a long time coming. Through<br />

direct channels cost-of-sale is reduced, brand reputation and<br />

guest experience are more closely managed and guests benefit<br />

from loyalty club features as well as the lowest prices. But how<br />

will OTAs respond to this initiative? With deep pockets, they are<br />

well resourced to respond. “Certainly they are attempting to<br />

respond with loyalty programmes” Apurva comments, “but one of<br />

the things that the hotel companies have over OTAs is they actually<br />

manage the hotel experience. You might spend seven minutes and<br />

40 seconds on a booking website but you spend 48 hours at the<br />

hotel, so what’s actually delivered by the hotel stay is a huge part<br />

of the overall experience. We value OTAs. They have a role to play<br />

and we would like to keep supporting that, but at the same time we<br />

want to make sure that as the brand owner, we ensure guests have<br />

the best possible experience in terms of price and stay.”<br />

Advantage Pricing is a game changer. It answers the customer call<br />

for clarity and value while increasing loyalty members, preserving<br />

brand integrity and ultimately improving the owner proposition.<br />

And in the end, everybody wins.<br />

* Euromonitor, January 2014<br />

29


OPENINGS 2015<br />

2015<br />

OPENINGS<br />

We create Great Hotels Guests Love<br />

The <strong>IHG</strong> ® ambition to be #1 for owners, guests and colleagues is, in its<br />

simplest form, about winning. So far in 2015*, the European <strong>Development</strong>,<br />

<strong>Design</strong> & <strong>Openings</strong> team has opened 13 great hotels and signed many<br />

exciting new deals. From the first meeting to discuss a new project the<br />

team works to enable your vision – advising on brand selection, design<br />

and build, staffing and technology and supporting the team right up to the<br />

successful opening of the hotel. This helps ensure that you are connected<br />

to the value that <strong>IHG</strong> brings from the very beginning.<br />

10<br />

02<br />

12<br />

13<br />

11<br />

09<br />

08<br />

04<br />

05<br />

06<br />

03<br />

30


OPENINGS 2015<br />

07<br />

01<br />

2015 <strong>Openings</strong><br />

1. Holiday Inn ® Baku, Azerbaijan<br />

Opened 19 March<br />

223 rooms<br />

New construction<br />

2. Hotel Indigo ® Helsinki - Boulevard, Finland<br />

Opened 4 March<br />

120 rooms<br />

Conversion<br />

3. Holiday Inn Express ® Toulon - Sainte-Musse, France<br />

Opened 9 January<br />

81 rooms<br />

New construction<br />

4. Crowne Plaza ® Berlin - Potsdamer Platz, Germany<br />

Opened 28 April<br />

256 rooms<br />

Rebrand<br />

5. Holiday Inn ® Frankfurt - Alte Oper, Germany<br />

Opened 1 March<br />

249 rooms<br />

New construction<br />

6. Holiday Inn ® Dresden - City South, Germany<br />

Opened 20 May<br />

91 rooms<br />

Rebrand<br />

7. Holiday Inn Express ® Istanbul Airport, Turkey<br />

Opened 24 March<br />

110 rooms<br />

Conversion<br />

8. Crowne Plaza ® London - Battersea, UK<br />

Opened 12 January<br />

78 rooms<br />

Rebrand<br />

9. Holiday Inn ® London - Watford Junction, UK<br />

Opened 20 February<br />

93 rooms<br />

Conversion<br />

10. Holiday Inn Express ® Aberdeen Airport, UK<br />

Opened 7 May<br />

193 rooms<br />

New construction<br />

11. Holiday Inn Express ® London - ExCel, UK<br />

Opened 16 June<br />

204 rooms<br />

New construction<br />

12. Holiday Inn Express ® Grimsby, UK<br />

Opened 30 June<br />

80 rooms<br />

New construction<br />

13. Staybridge Suites ® London - Vauxhall, UK<br />

Opened 23 January<br />

93 rooms<br />

New construction<br />

*Data as at 30 June 2015<br />

31


OPENINGS 2015<br />

ˇHoliday Inn Express ® Aberdeen Airport, UK<br />

ˇHoliday Inn ® London - Watford Junction, UK


OPENINGS 2015<br />

ˇHoliday Inn Express ® Toulon - Sainte-Musse, France<br />

ˇHoliday Inn ® Dresden - City South, Germany


OPENINGS 2015<br />

ˇCrowne Plaza ® Berlin - Potsdamer Platz, Germany<br />

ˇHoliday Inn ® Baku, Azerbaijan


OPENINGS 2015<br />

ˇHoliday Inn Express ® Istanbul Airport, Turkey<br />

ˇStaybridge Suites ® London - Vauxhall, UK


OPENINGS 2015<br />

ˇHoliday Inn Express ® Grimsby, UK<br />

ˇCrowne Plaza ® London - Battersea, UK


OPENINGS 2015<br />

ˇHoliday Inn ® Frankfurt - Alte Oper, Germany<br />

ˇHotel Indigo ® Helsinki - Boulevard, Finland


BRANDS<br />

Holiday Inn Express ® London - Park Royal


BRANDS<br />

Introducing the Next Generation of<br />

public space at Holiday Inn Express ®<br />

London - Park Royal<br />

In the previous issue of DQ <strong>magazine</strong>, we looked at the<br />

Next Generation of Holiday Inn Express ® , what it means<br />

for the brand, the owners and the guests. Since then<br />

the very first new-look public space has been unveiled<br />

at Holiday Inn Express London - Park Royal. We went<br />

along to check out the new features.<br />

Holiday Inn Express forms part of the largest hotel brand family in<br />

the world and launching the Next Generation of the brand is a huge<br />

step for <strong>IHG</strong> ® . When prototypes were revealed at the International<br />

Hotel Investment Forum in Berlin earlier this year, they were<br />

extremely well received. Now guests can finally experience the real<br />

thing at the Holiday Inn Express London - Park Royal, which was<br />

unveiled in July.<br />

The five-storey building is well located to pilot the new-look public<br />

space. It has speedy links to central London, Wembley Conference<br />

Centre for major exhibitions, Wembley Stadium and Arena for<br />

sporting events and concerts, and it’s minutes away from Westfield<br />

London, one of Europe’s biggest shopping centres. As a modern build<br />

with 108 bedrooms and three purpose built meeting rooms, Holiday<br />

Inn Express London - Park Royal is in many ways a prototypical<br />

example of the Holiday Inn Express brand. Karan Khanna, Vice<br />

President, Head of <strong>Design</strong> & Engineering in Europe agrees, “It’s<br />

not the biggest or the smallest Holiday Inn Express and it has<br />

minimal food and beverage (F&B) as per the previous standard. It<br />

is well located for the target guest and its close proximity to <strong>IHG</strong>’s<br />

headquarters in Denham made the project easier to manage. Also,<br />

the fact that it’s close to Holiday Inn ® London - West, which has a<br />

great Open Lobby, is a benefit. It gives people a strong example of<br />

how the two brands are different and yet carry a similar philosophy.”<br />

That philosophy has been informed by considerable consumer<br />

insight, taking into account the evolving consumer behaviour;<br />

from the rise of the laptop-and-latte guest to the remote-working<br />

business traveller. Karan elaborates, “Guests were telling us they<br />

were looking for an F&B that suited their needs and schedule,<br />

especially in the UK. When you add that to owner insight about<br />

efficient use of public space, we felt that a holistic review of the<br />

Next Generation was required. So it’s not just a new room design<br />

or public space design, it touches every single thing from layout<br />

and furniture to service, technology, merchandising and so on.”<br />

39


BRANDS<br />

Leaning towards a more aspirational guest with design-conscious<br />

furniture, fixtures and equipment (FF&E), Holiday Inn Express Next<br />

Generation is a project that has been painstakingly value and time<br />

engineered. Karan confirms, “Once the funding and consultants<br />

are on board it is around a 4-6 week build. Through the value<br />

engineering that we’ve done, the rooms cost pretty much the same<br />

as generation three rooms. We’ve made smart choices about where<br />

we’ve spent the money, the FF&E and so on. Certain things are<br />

more expensive than before, but we’ve taken money out of other<br />

parts of the room to compensate. On top of that, there should be<br />

greater revenue generated from the public areas. Hopefully the<br />

new design provides a greater opportunity to charge a premium<br />

rate, which should mean that this is a higher return on investment<br />

product than the previous generation”.<br />

40


BRANDS<br />

And if research conducted at two properties is anything to go by, it’s<br />

worth it. Quantitative research collated feedback from more than 30<br />

guests at Holiday Inn Express ® London – Greenwich and a comparable<br />

generation three hotel, Holiday Inn Express ® Harlow. The insight was<br />

clear: guests love it. Five out of ten guests gave the generation three<br />

model 5/5 and the other five guests gave it 4/5. Already impressive<br />

results, but generation four topped that with almost eight out of<br />

ten guests giving it 5/5 and the rest rating it 4/5. “It’s safe to say we<br />

are pleased with the results” admits Karan. “By piloting the public<br />

space at Holiday Inn Express London - Park Royal, which was already<br />

a successful hotel, we were able to check the full enhanced scope<br />

versus what the base model should be like. It is a great product that’s<br />

been the result of a lot of hard work.”<br />

Holiday Inn Express London - Park Royal is a fantastic example of<br />

where the brand is heading. Reception desks have been replaced by<br />

space-saving pods, improved working areas and free WiFi encourages<br />

people into revenue-generating space and more flexible F&B reflects<br />

guest needs. To launch in such a key London location is a massive<br />

coup for the brand and an exciting addition to <strong>IHG</strong>’s estate.<br />

41


EVENTS<br />

<strong>IHG</strong> ® on the Road<br />

Since the last issue, members of the <strong>Development</strong>, <strong>Design</strong> & <strong>Openings</strong> team have played host to and participated in some<br />

significant industry conferences across the patch. From the <strong>IHG</strong> Germany Investor Day hosted in the new Holiday Inn ®<br />

Frankfurt - Alte Oper to the International Hotel Investment Forum in Berlin where we unveiled the Next Generation of<br />

Holiday Inn Express ® . These events provide an important platform to showcase the services that <strong>IHG</strong> offers owners and<br />

operators in addition to thanking them for their ongoing support. It also aligns our thinking and strengthens our journey<br />

together to achieve Great Hotels Guests Love.<br />

International Hotel Investment Forum 2015<br />

2-4 March, InterContinental ® Berlin<br />

42


EVENTS<br />

<strong>IHG</strong> ® Germany Investor Day<br />

7 May, Holiday Inn ® Frankfurt - Alte Oper<br />

43


To register for the UK’s leading<br />

hotel conference, please visit<br />

www.theahc.co.uk<br />

<strong>IHG</strong> ® are proud<br />

sponsors of the Annual<br />

Hotel Conference 2015<br />

We look forward to welcoming<br />

you at our stand<br />

The Annual Hotel<br />

Conference 2015<br />

14th & 15th October 2015, Hilton Manchester Deansgate<br />

Connect & Communicate<br />

Running for the 12th year and attracting 800<br />

delegates, The AHC is the leading event for<br />

the UK hotel industry.<br />

Join independent hoteliers, owners, operators and managers as well<br />

as investors, developers, designers, architects, consultants, tourism<br />

leaders and regional tourist board representatives for a day and a half<br />

of unrivalled practical knowledge designed to add real value to your<br />

business operations.<br />

See Apurva Pratap,<br />

<strong>IHG</strong>’s Vice President of<br />

Distribution & Commercial<br />

Marketing for Europe<br />

at the opening plenary<br />

session, 3:15pm on<br />

14th October<br />

• The Programme – themes including Branding, Disrupters, OTAs,<br />

Technology and Finance to name only a few.<br />

• AHC Social – an ambient zone with food and drinks served all day.<br />

• AHC Innovate – a zone that brings technology and integrated guest<br />

services together.<br />

• AHC Connect – a zone that ties in with the new dedicated social<br />

media platform of AHC Connect. Delegates and sponsors can take a<br />

break, grab a bite to eat, meet up with peers and catch up with emails<br />

throughout the 2 days.


EVENTS<br />

Events… Dates for your diary<br />

<strong>IHG</strong> ® will be hosting a series of roadshows and briefings across the region over the next few months, presenting<br />

owners and operators with key messages and the strategy for growth going forward. <strong>IHG</strong> will also have a presence<br />

at major conferences in the calendar during this busy season. We look forward to seeing you soon.<br />

Upcoming Events<br />

London, 7-8 July 30 September 5-7 October<br />

✓<br />

Conference:<br />

Serviced<br />

Apartment<br />

Summit, London<br />

<strong>IHG</strong> Poland<br />

Investor<br />

Lunch,<br />

Warsaw<br />

Conference:<br />

Expo Real,<br />

Munich<br />

8 October 14-15 October 26-28 October<br />

<strong>IHG</strong> France<br />

Investor Lunch,<br />

Paris<br />

Conference:<br />

Annual Hotel<br />

Conference,<br />

Manchester<br />

Conference:<br />

RHIC,<br />

Moscow<br />

3-4 November 23 November 24-25 November<br />

Conference:<br />

Deloitte 27th<br />

European Hotel<br />

Investment<br />

Conference,<br />

London<br />

<strong>IHG</strong> UK&I<br />

Breakfast<br />

Briefing,<br />

London<br />

Conference:<br />

Hotel & Tourism<br />

Trends Poland &<br />

Central Europe,<br />

Warsaw<br />

45


INTERVIEW


INTERVIEW<br />

“<br />

“<br />

When I go on site I am the <strong>IHG</strong> ® ambassador<br />

which is all about creating a buzz.<br />

A Day in the Life of…<br />

Gilles Goasdoué<br />

Gilles Goasdoué is the Director of Hotel <strong>Openings</strong> Performance & Support, Europe. Born in Digne les Bains, France, he moved<br />

to the UK 28 years ago and worked briefly as a waiter before moving into an auditing role at InterContinental ® London Park Lane.<br />

Gilles’ contribution to <strong>IHG</strong> ® has been exceptional. Before joining the <strong>Development</strong>, <strong>Design</strong> & <strong>Openings</strong> (DD&O) department he<br />

led the UK&I franchising team, establishing a highly valued and recognised team of professionals and many of the foundations<br />

of what became Hotel Performance Support (HPS). Since joining DD&O in 2009 Gilles has developed the New Hotel <strong>Openings</strong><br />

(NHOP) team to become a group of highly talented individuals with a passion for delivering Great Hotels Guests Love.<br />

Gilles will shortly hand the leadership baton over to a new Head of Hotel <strong>Openings</strong> while he continues to support the NHOP<br />

field team, acting as a rapid response team member to support hotels during peak periods. As part of his day job, Gilles has<br />

travelled to nearly 50 countries around the world. Here he tells us a little more about his day-to-day life and career with <strong>IHG</strong>.<br />

I normally get up extremely early in the morning and arrive in the<br />

office about 7:00am. I like to make the most of the day. After I’ve<br />

caught up on the night’s emails, the questions start flooding in from<br />

either the Hotel <strong>Openings</strong> team in the field or new hotels that we are<br />

looking after.<br />

My days in the office are quite rare at the moment because we are<br />

opening so many projects in Europe. I have been travelling for the<br />

last 15-20 years, so you get used to it. I might be in the head office in<br />

Denham for one or two weeks and then back on the road for another<br />

eight weeks. One of my roles at <strong>IHG</strong> was installing Holidex all around<br />

the world, from Sydney to Chicago to Thailand, which was fantastic.<br />

I don’t have the restrictions of a family, so am pretty mobile. Although<br />

it can be difficult to maintain a social life. I can’t just join a club and<br />

play badminton every Tuesday night because I won’t be there half<br />

the time. It is challenging, but it is a way of life. I wouldn’t change it.<br />

I love my job. I have what I call the hospitality virus. When you work in<br />

hospitality, you catch it and then you have it forever!<br />

I have never really wanted to be anything else. As a child I used to<br />

spend a lot of time in the kitchen with my mother who was a talented<br />

cook. I was always fascinated by hospitality. Whenever I went out to<br />

eat with my family, I was always interested in the waiting staff and<br />

service behind the experience. I suppose the people element of the<br />

job has always interested me.<br />

Pretty much my entire working life has been with <strong>IHG</strong>, from working as<br />

a young boy at the InterContinental London Park Lane as an accountant<br />

to being General Manager at a Holiday Inn Express ® near Northampton<br />

aged 25, to Global Technology in the corporate office to my role now in<br />

Hotel <strong>Openings</strong>. My job is very varied, which keeps it fresh. I always say<br />

it’s a bit like being a General Practitioner. We do a bit of everything and<br />

we get the specialists in when we need them.<br />

My job sector is very much a people business. We deal with varied<br />

personalities which makes the job very interesting. We deal with a<br />

lot of people here at a corporate level and then with the people at<br />

the hotels from the GM to frontline staff. I love this part of the job<br />

because it is interesting to hear their different perspectives. When<br />

I go on site I am the <strong>IHG</strong> ambassador which is all about creating a<br />

buzz and ensuring everyone understands the benefits of joining <strong>IHG</strong>,<br />

from our system size to our brands to the amount of business they<br />

will drive.<br />

I tend to go to bed around 10:30pm since I get up so early but I don’t<br />

really have a routine because I don’t know where I’ll be. Luckily I can<br />

function on very few hours of sleep and mostly catch up on sleep on<br />

planes. Tips for sleeping on planes? It sounds boring, but change<br />

your watch to your destination time, don’t eat anything and drink a lot<br />

of water. At home I switch off my mind by baking and messing around<br />

in the kitchen, which I suppose is where my interest in hospitality<br />

really stemmed from as a child all those years ago.<br />

47


INFOGRAPHIC<br />

$10m<br />

Contribution<br />

to communities<br />

through monetary<br />

donations and in-kind<br />

support, including<br />

through <strong>IHG</strong> ® Shelter<br />

in a Storm*<br />

20,000<br />

The<br />

number<br />

of local people<br />

we'll provide skills<br />

and jobs for via<br />

the <strong>IHG</strong> ® Academy*<br />

796<br />

12%<br />

Reduction in water*<br />

per occupied room<br />

in water-stressed areas<br />

18<br />

The number of<br />

natural disasters<br />

<strong>IHG</strong> ® Shelter<br />

in a Storm<br />

responded<br />

to in 2014<br />

100%<br />

<strong>IHG</strong> ® Academy<br />

programmes in<br />

more than 60<br />

countries as of<br />

May 2015<br />

The percentage our<br />

hotels enrolled in the<br />

<strong>IHG</strong> Green Engage ®<br />

online sustainability<br />

system<br />

12%<br />

Reduction in carbon<br />

footprint* per<br />

available room<br />

$92m<br />

The costs that <strong>IHG</strong> managed hotels<br />

avoided by participating in the <strong>IHG</strong><br />

Green Engage ® system in 2014<br />

Being a responsible business is part of <strong>IHG</strong>’s DNA and is at the heart of everything we do – it is<br />

part of our culture and underpins our entire strategy. It means making a positive impact on the<br />

world around us, while also building our business and provides us with the opportunity to protect<br />

the environment, create job opportunities, and improve community resilience. As a result our<br />

brand reputation gets a boost, our people are empowered and we operate more efficiently,<br />

thereby creating value for all our shareholders and stakeholders in the long term. In 2013 <strong>IHG</strong><br />

set targets to measure our impact on the environment and community and we’re well on the<br />

way to achieving these targets.<br />

*Target by 2017 from 2012 baseline<br />

48


WHO WE ARE<br />

Hogarth & Ogilvy manages multi-language design and production services across print, digital and broadcast.<br />

We are a team of production-oriented designers, producers and project managers who concentrate on<br />

fast-turn, high-volume and tactical creative assignments.<br />

DIGITAL<br />

PRINT<br />

&<br />

EXHIBITION<br />

TRANSCREATION<br />

&<br />

CONCEPTS<br />

MOVING IMAGE<br />

&<br />

PRESENTATIONS<br />

INFOGRAPHICS<br />

&<br />

Bringing ideas to life<br />

hogarth-ogilvy.com<br />

CONTACTS – Project Director jackie.winter@hogarth-ogilvy.com | Project Manager tracey.gibbins@hogarth-ogilvy.com


CONTACTS<br />

Robert Shepherd<br />

Chief <strong>Development</strong> Officer, Europe<br />

Tel: +44 1895 512 173<br />

robert.shepherd@ihg.com<br />

Philippe Bijaoui<br />

Vice President <strong>Development</strong>, Europe<br />

Tel: +44 1895 512 976<br />

philippe.bijaoui@ihg.com<br />

Karan Khanna<br />

Vice President, Head of <strong>Design</strong> & Engineering, Europe<br />

Tel: +44 1895 512 791<br />

karan.khanna@ihg.com<br />

Paul Phillips<br />

Vice President Financial Planning & Investment Analysis, Europe<br />

Tel: +44 1895 512679<br />

paul.phillips@ihg.com<br />

Gilles Goasdoué<br />

Director of Hotel <strong>Openings</strong> Performance & Support, Europe<br />

Tel: +44 1895 512 058<br />

gilles.goasdoue@ihg.com<br />

InterContinental Hotels Group plc<br />

Broadwater Park, Denham, Buckinghamshire, UB9 5HR, United Kingdom<br />

Tel: +44 1895 512 000<br />

We would love to hear from you!<br />

Please direct any thoughts, suggestions or advertising enquiries to europedevelopment@ihg.com

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