Industry

IHG plans ‘combo-products’

(from left) Pascal Gauvin, COO- India, Middle East and Africa, InterContinental Hotels Group ( IHG); Sangeeta Prasad, CEO- Integrated Cities and Industrial Clusters, Mahindra Lifespace Developers Ltd; Naveen Jain, President, Duet India Hotels; and Saurabh Sonthalia, Country Head- Duet India Group, at the opening of Holiday Inn Express in Chennai on Wednesday. Photo: Bijay Ghosh

(from left) Pascal Gauvin, COO- India, Middle East and Africa, InterContinental Hotels Group ( IHG); Sangeeta Prasad, CEO- Integrated Cities and Industrial Clusters, Mahindra Lifespace Developers Ltd; Naveen Jain, President, Duet India Hotels; and Saurabh Sonthalia, Country Head- Duet India Group, at the opening of Holiday Inn Express in Chennai on Wednesday. Photo: Bijay Ghosh  

Launches second Holiday Inn Express at Mahindra World City

The InterContinental Hotels Group (IHG) has started testing, and is looking at the possibility of introducing ‘combo-products’ in the Indian market, in a move that will allow the group to cut costs in a tough environment.

Over Rs.1,500 crore will be invested, as part of the multinational hotel chain’s joint venture with Duet India Hotels, to set up a total of 19 hotels under IHG’s mid-market brand Holiday Inn Express in India over the next few years.

“The idea of combo-products is simple. In the same piece of land, there will be two of our hotels, such as Holiday Inn and Holiday Inn Express. It is about maximum utilisation of the land,” said Douglas Martell, IHG’s Vice-President Operations, Southwest Asia.

According to Mr. Martell, IHG has such a combo-product in Delhi and is looking at the possibility of replicating the same in Mumbai, along with Duet India Hotels.

“It saves on energy as well. What we have seen, when we did this in China… is operational savings of up to 30 per cent,” he added. The joint venture is looking to set up hotels in Hyderabad, Chennai, Goa, Mumbai and Indore, according to Naveen Jain, President of Duet India, which owns 76 per cent of the joint venture company. IHG owns the rest.

Business traveller

“Each hotel will require an investment of around Rs.70-80 crore. Holiday Inn Express is basically aimed at the business traveller. But this brand makes more commercial sense as it doesn’t waste investment on things like a spa or a swimming pool, which often are not used at all,” Mr. Jain said. He was here to launch its second Holiday Inn Express hotel at Mahindra World City near here.

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Printable version | Apr 2, 2020 7:48:56 PM | https://www.thehindu.com/business/Industry/ihg-plans-comboproducts/article5474915.ece

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