InterContinental Hotels Group (IHG) just announced the upcoming launch of a new midscale brand, which will first target the US market. It should be franchise-ready by the fall of 2017, meaning the brand's first properties should open by 2019.
This new brand aims to boost IHG's visibility on the midscale segment: the group evaluates this market to be worth $20 billion with about 14 million potential customers. To settle its brand on that specific range, it banks on prices that will be cut by $10 to $15 with respect to its Holiday Inn Express brand.
"This new brand builds on IHG's leading position in the midscale segment alongside Holiday Inn and Holiday Inn Express," Richard Solomons, CEO of IHG, stated. "It addresses the needs of a rapidly growing and underserved segment."
The franchise operations should be deployed by the fall of 2017, hence the forecast to open IHG's first properties under that brand by 2019. In addition, the group targets the American market first. As of January 1, 2016, InterContinental Hotels Group is the 3rd largest hotel group worldwide with 5,032 properties and 744,368 rooms, according to data published by Hospitality ON.
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