IHG defends $1b Holiday Inn revamp

InterContinental Hotel Group (IHG) has attempted to head off criticism of its $1b (£680m) Holiday Inn revamp by revealing that those hotels that have already converted are enjoying boosts in revenue.

IHG owners have warned that they need more time and money to complete the revamp, covering signage, bedding, lighting and background music, because of the financial downturn.

But IHG has now confirmed that it is on target to complete the transformation of all 3,200 hotels, including 222 in the UK, by its original target date of the end of 2010. It has managed 600 so far, including 22 in the UK.

Those hotels that have changed are seeing rises in revenue per available room (revpar) of about 6%, according to IHG. In comparison, the IHG group suffered revpar declines of 6.5% in the last quarter of 2008.

In addition, a survey of 15 hotels in the United States over a six-month period showed higher occupancy and large improvements in guest satisfaction in comparison with unconverted Holiday Inn hotels.

Andy Cosslett, IHG chief executive, said that feedback from customers and owners of the brand had revealed widespread acceptance for the new look hotels.

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By Gemma Sharkey

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