LAS VEGAS—Not only did Kemmons Wilson revolutionize the hotel franchising model when he began franchising the Holiday Inn brand, in the late 1950s he was the first to assemble an ownership association with the goal of franchisors having a direct relationship with the hotel owners.
At the time, the owner’s association wasn’t simply a rubber stamp; it was installed so Holiday Inn franchisees could have direct communication with the brand.
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Glenn Squires |
Today’s owners are keeping that initial goal in mind as they rebrand and roll out new initiatives for 2012. The owners’ association of InterContinental Hotels Group hotels has rebranded itself from the International Association of Holiday Inns, or the IAHI, to the “IHG Owners Association.” Incoming chairman of the group, Glenn Squires of Pacrim Hospitality Services, made the announcement Monday at IHG’s Americas Investors & Leadership Conference in Las Vegas.
“They can’t be successful without us, and we can’t be successful without them,” said Squires of the Owners Association-IHG relationship.
The new identity and website are effective immediately.
Squires said just about every standard IHG puts in place goes through the owner’s association first. In most cases, the owners ask for a return on investment and evaluate new strategies accordingly.
“Everything we do starts with what our membership asks us to do,” said Bill DeForrest, who served as chairman of the ownership group until Squires took his seat on Monday. “We go out and ask members what they want from us. Then we have a chance to sit down the executive committee and show them factually what our members are seeing.”
Wilson founded the owner’s association in 1956, and today more than 75% of IHG owners worldwide are members.
"The relationship between IHG and its owners—through the IHG Owners Association—is unique in our industry and has helped us, together, create some of the world's strongest and most successful hotel brands,” IHG CEO Richard Solomons said in a news release. “The new name reflects this history, the strength of the relationship, and our future plans to continue to work closely together to create value for our owners.”
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Initiatives for 2012
Although Squires will hit the ground running, he is still developing specific initiatives for the group in 2012.
One general goal is to improve returns for owners. For example, Squires said the ownership group has been working on understanding distribution channels and tweaking IHG’s “green engage” program. The program can help hotel owners save 5% to 7% of operating costs in the Americas, Squires said.
“We also must hire the right type of employee and have people who can upsell,” he said. “I don’t think we can get the ROI the way we were in the past. Today it’s about thinking differently.”
Squires was able to offer several other goals for the upcoming year:
• Increase ROI for all owners by continuing to monitor standards development and looking for bottom-line cost savings to improve cash flow.
• Deepen engagement for all owners with the association and with IHG brands and within their local communities and at their hotels.
• Lead change that solidifies the association’s strategic and succession planning and secures future growth and collaboration with IHG.