IHG Hotels & Resorts plans to launch a midscale brand with potential for “considerable scale,” the company said Tuesday during its second-quarter earnings call.
CEO Elie Maalouf said the brand would be focused on conversions.
“We heard from guests that they want a more trusted brand — an IHG brand — in the space, and we heard from owners that they would like to be part of the IHG space,” said Malouf, who led his first earnings call since succeeding Keith Barr in July.
Maalouf envisions the brand adding “more than 500 hotels over the next 10 years, and more than 1,000 hotels over the next 20 years” in the U.S.
Five years ago, IHG launched a midscale brand, Avid, and all hotels are new construction. According to Avid’s website, 66 hotels are open, mostly in the U.S.
According to a recent Lodging Econometrics report, Avid has 132 hotels in the pipeline.
Hilton entered the midscale market in 2017, when the company opened its first Tru hotel. According to Tru’s website, the brand has 260 hotels today.
Earlier this year, Marriott International revealed plans to launch a midscale extended-stay brand.
Source: Business Travel News
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