IN SPITE of the economic doldrums, InterContinental Hotels Group is forging ahead with putting a new face on Holiday Inn. The $1bn makeover was launched in 2007 in an effort to put a fresh face on the iconic brand. Improvements include room upgrades, streamlined check-in and an updated sign logo and lighting.

But some hoteliers are feeling the pinch of a bad economy when it comes to making the upgrades.

‘The improvements are costing up to $100,000 and much of that is for the sign,’ said Jay ‘Jimmy’ Patel of Prateek Enterprises Inc and Jai Amba Maa Hospitality and NC Regional Director of AAHOA. ‘We were lucky with our Holiday Inn Express, as the refresh was already announced when we built. A lot of people aren’t happy about it.’

IHG is hoping that the changes will create a more positive attitude about the brand and bring in business travelers who have found their travel budgets slashed – which will increase hoteliers’ occupancies and RevPAR numbers.

‘Economy is a factor for our industry as well as many others, however when times are tough, smart brands invest,’ IHG said in a statement. ‘The changes being made as part of the relaunch will position Holiday Inn well for the future. Hotels that have completed the relaunch are already seeing the benefits.’

Patel also sees the positive side of the Holiday Inn’s new look. ‘Holiday Inn performs as a budget brand and hoteliers will spend more on it,’ he said. ‘The brand is a different quality now – some Holiday Inn Express locations are nicer than a lot of Holiday Inns.’

Rebranded hotels are also reporting a six per cent RevPAR increase versus non-rebranded locations during the 10 months of tracking the properties.

IHG has said it is dedicated to helping its franchisees who are feeling the pinch through the relaunch.

‘The Holiday Inn brand relaunch represents a $1bn investment from our partners, $60m of which was contributed by IHG,’ the statement said. ‘IHG remains committed to finding ways to support owners during the relaunch. Throughout the process, IHG continues to listen to feedback from owners and works closely to find ways to further simplify the relaunch process for owners.

To date, 970 Holiday Inn properties have been relaunched globally, equaling one-third of the total properties.