Holiday Inn relaunch campaign boosts profit
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Intercontinental Hotels Group (IHG) says the £650m relaunch of its flagship Holiday Inn brand helped boost profit by 22% in the first half of the year.
The hotelier, which also owns the InterContinental and Crowne Plaza brands, registered operating profit of $219m (£138m) in the six months to 30 June, up from $179m (£113m) in the same period last year.
Revenue rose to $772m (£488m), up 6% on last year’s $726m (£459m).
The company plans to refresh 3,300 Holiday Inn hotels worldwide. It says work remains “on-track” with 2,585 hotels now operating under new standards.
IHG aims to give the brand a more contemporary image.
The hotel group, which makes the bulk of its revenue from the mid-market brand, launched a £65m global campaign to support the reluanch in April.
The campaign aimed to highlight the refresh, service and comfort on offer.
Andrew Cosslett, chief executive of IHG, says its emphasis on reducing costs and building its brands has “put us in great shape to increase share in what is now a rising market”.
The company is also planning a relaunch of its boutique brand Hotel Indigo ahead of 10 international openings planned for this year.
YouGov Insight:
· 16 to 24 year olds are not inclined to resort to instant coffee, with only 67% saying that they drank it in the past month.
· By contrast, over 55s heartily approve of instant coffee, with 86% saying that they have had instant at least once in the past month.
· 67% of consumers associate coffee with the word ‘stimulating’.
· A fewer proportion of Londoners (69%) drank instant coffee in the past month than anywhere else in the UK.
· The North (84%) is the region with the most drinkers of instant brands (Nescafe, Kenco etc.).
