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Utah lodging: Whiff of change marks makeover of Holiday Inn
This is an archived article that was published on sltrib.com in 2009, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Walk in the front door and right away there's a scent of something new at Holiday Inn.

An aroma, not overwhelming but certainly noticeable, wafts through the air upon entering the lobby, dispersed by a scent fan tucked obscurely against a wall.

"We're paying attention to the whole arrival process," said John Merkin, senior vice president of brand management for Holiday Inn in the Americas. "You notice a whiff when you come in, subtle enough after that initial whiff you don't really notice it."

But Holiday Inn is counting on leisure and business travelers noticing that the motel chain, a fixture across the United States since 1952, is recharging itself. The company launched a $1 billion renovation campaign in the fall of 2007, looking to put a new face on what Merkin called "the industry's best-known brand. We don't take that lightly. It's a brand with a 57-year history. We wanted to do it well."

The chain is about halfway through the process of modernizing 900 Holiday Inns and Holiday Inn Express motels -- the latter a 17-year-old brand that offers fewer services (such as a complimentary breakfast room rather than a full-service restaurant).

The transition involves opening new Holiday Inn and Expresses, removing the brand name from some older properties, and requiring most existing motels to go through a top-to-bottom makeover.

Only when franchise owners complete the renovation to Holiday Inn's corporate satisfaction can they obtain a new sign with the chain's first logo redesign in a half century.

"This relaunch isn't just changing signs," said Merkin. "The hotels that get these new signs have to go through a rigorous certification process. They have to provide they can maintain levels of guest satisfaction over a 12-month period. Their staffs had to go through a service training that we call 'Stay Real,' so all staff members know how to interact with guests as if they are trusted friends, not numbers or a business transaction.

"Then our guests understand, when they see a new sign, that this is where Holiday Inn is going. It will lead us to more consistency," he added.

The chain's new look begins on the exterior with more landscaping and night lighting -- green for a Holiday Inn, blue for a Holiday Inn Express. Then, inside the door, visitors will hear music, more soothing than what Holiday Inn played before, from a soundtrack that will change monthly. Front desks have been cleared of all "clutter," Merkin said.

Having surveyed 17,000 guests about their likes and dislikes, Holiday Inn determined its clients were "everyday heroes. They're not the CEOs of large companies, but everyday people going from point to point, conducting trainings, selling or riding the circuit. They're families on trips to somewhere else," he said. "They primarily drive rather than fly. They're not as tied into the material aspect of the hotels they stay in. They see the hotel as a place to relax, get caught up."

So in guest rooms, like those at the month-old Holiday Inn Express in West Valley City, all beds have new white bedding as well as two types of pillows. Guests can choose soft or firm. "The words are stitched right onto the pillow so there's no guessing," said Amber Chatfield, general manager of the motel, which has 94 rooms, including 20 suites, and employs 25.

Her suites have a pullout couch, a small refrigerator and a microwave. All rooms have new lighting, multiple-setting shower heads and cotton towels. New motels also feature bigger exercise rooms -- Chatfield's has four treadmills, an elliptical machine, two stationary bicycles and a weight machine -- and pools.

"You can see our big red water slide from [Interstate 215]," noted Chatfield, pointing to an enclosed red tube that leaves the building's west side at the top of the ladder and re-enters the wall at water level of "Grins and Fins," a pool area that also features a small internal slide, a basketball hoop and water fountains.

To make the motel part of the community, Chatfield said locals may rent the pool, an adjoining party room and an arcade through packages available for $250 plusr tax. "We've already had one birthday party," she added.

Franchise owners have until next year to make the changes necessary to acquire new signage. Complying with that deadline has been both hurt and helped by the recession, reducing credit availability but also causing less disruption to customers since hotel occupancy levels are down.

"It's a double-edged sword, having to deal with [renovation] with the economy as it is," Merkin acknowledged. "Our hotels have to pay out of pocket for these changes, but we've continued on this path because good brands, smart brands, invest in times like this. We've seen a 6 percent revenue/share increase at motels that have relaunched compared to those who haven't."

Bloggers on the Web site www.hotelsmag.com expressed mixed reactions to Holiday Inn's prospects of grabbing more market share based on its new look.

G.K. Rowe urged the chain to change its color scheme. "Ditch the green for rebranding. Why would you keep the heritage that boasted free ice, telephones in every room and tiled bathrooms in the '60s?"

Added "Margaret": "Major uphill battle. It will take too long to get all the old, rundown properties out of the system. Those who do re-try may like it if they get a 'new' one, but if they get an old one, why would they come back a second time?"

On the other hand, "Johnny 5" observed that "Holiday Inn does have a reputation as an older brand in the United States. But venture into some of the new Holiday Inns in Asia and you would be wowed. Clean and modern, with excellent service, they definitely redefine Holiday Inn. Now with tastes around the world rapidly changing, I believe Holiday Inn is correctly positioning itself to meet and surpass future guest expectations."

Shane Kuber agreed. "On the right track to moving Holiday Inn up a segment. Don't quit until accomplished."

mikeg@sltrib.com

Holiday Inn info

Holiday Inn and Holiday Inn Express are two of seven hotel brands -- along with InterContinental, Crowne Plaza, Hotel Indigo, Staybridge Suites and Candlewood Suites -- that are part of InterContinental Hotel Group.

IHG has more guest rooms than any other hotel company in the world -- 621,696 rooms in 4,222 hotels in 100 countries as of March. Another 1,697 hotels with 236,343 rooms are in the pipeline.

The chain has 23 hotels in Utah, eight in the Salt Lake Valley

Guests spend about 180 million nights in IHG hotels every year.

Source: InterContinental Hotel Group

New signage available to motels that renovate.
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