Correction: 5 November 2014: An earlier version of this story misstated the cost to build out the Holiday Inn Express renovations.
LAS VEGAS—InterContinental Hotels Group’s landmark Holiday Inn brand is being served up new food-and-beverage offerings, executives said during the company’s brand conference on Tuesday.
The company is rolling out Burger Theory, a restaurant that will focus on gourmet, specialty burgers, for its Holiday Inn brand. The restaurant is already installed in Atlanta at the Holiday Inn Airport South. Plans are to launch the restaurant at “several” more hotels by the end of the year, Maurice Cooper, VP, Holiday Inn Express brand, Americas, IHG, said during the IHG Americas Investors & Leadership Conference.
“They have to be vetted and tested first,” Cooper said during a general session. “We’re not going to offer up any solutions until we are convinced it will be successful.”
Cooper said F&B is a key piece of Holiday Inn’s total revenue picture. “For Holiday Inn, F&B is at the heart of how we will compete differently,” he said.
During a question-and-answer session with journalists following the general session, Cooper did not give an exact figure for how much it will cost owners to install Burger Theory. He said cost will depend on whether the owner retrofits a space with Burger Theory or builds a new space.
He added that the company does not have a specific number in mind as to how many Burger Theory restaurants IHG wants to see open.
“Even if we have them at 20%, Holiday Inn’s portfolio is so big, we could get scale at 20%,” he said. As of 30 September, there were 1,202 Holiday Inn-branded hotels comprising 222,689 rooms open worldwide.
The addition is all part of helping owners boost revenue at Holiday Inn hotels, said Jolyon Bulley, COO, the Americas. Holiday Inn has an opportunity to differentiate from competitors, especially in the evenings, he said.
“We want to create dinner experiences our brand will be known for and will drive performance,” Cooper said.
“F&B is one of the most outdated experiences and isn’t a moneymaker,” he added.
The new F&B solution doesn’t just touch the Burger Theory restaurant, Cooper said. The brand also plans to provide a new breakfast offering for guests, which will include a new menu, a pay-for-what-you-eat buffet and complimentary bakery items.
Cooper said it’s important for the brand to also pay attention to breakfast because more than half of Holiday Inn guests eat breakfast at the property.
Finally, Cooper said a redesign is coming for Holiday Inn. The company on Monday announced redesigns for Holiday Inn Express and Crowne Plaza.
A new design plan is underway for the brand and will be announced by the end of 2015, though Cooper offered few details. He did say brand executives do not see the current design as underperforming.
“Today, our design isn’t a defining aspect, and it should be,” he said.
The design process is in the beginning stages, but will build off Holiday Inn Express’ recently announced Formula Blue scheme.
Holiday Inn Express
Regarding Holiday Inn Express, Jennifer Gribble, director and head of Americas for the brand, said the cost of a new 93-room hotel is $80,000 per room. To renovate from hotels previously built as new-build or conversion, furniture, fixtures and equipment cost is approximately $600,000 great room and guestroom combined for an 87-room hotel.
The Formula Blue design will be a standard for all hotels as of 1 April 2015, she said. All hotels will be expected to switch over to the design on their existing renovation timetables.
F&B changes are also in the mix for Holiday Inn Express, Gribble said. The company is changing its coffee blend.
“We don’t like our coffee. You don’t like our coffee. Guests don’t like our coffee,” she said.