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NYU notebook: Reverb, IHG, IHR, AccorHotels, Two Roads

There were a five brand launches at NYU there would have been more if Hilton didn’t hold back due to what Hilton CEO Chris Nassetta called “too much noise.”

That said, everyone was ready to talk about their plans, pipelines and maye some pipedreams at NYU. Here is the first part of HOTELS NYU notebook based on one-on-one interviews during the show that some called a bit quieter than usual.

Most of the news was being made in the select-serve segment with hotel companies seeing the segment in need of a refresh fitting today’s trends.

Hard Rock rolls. Among the newcomers was the quiet launch of Reverb by Hard Rock from Hard Rock International. With no press release offered to date, Hard Rock put on a big party during NYU to launch the new upscale, select-service brand that has been three years in the making, according to Executive Vice President of Development Marco Roca.

Roca said the product is not “fully baked” and will be more officially launched next January at ALIS, but in the same breath he said he already has 30 letters of intent. He is targeting gateways and secondary markets, as well as college towns, music capitals and up and coming destinations.

Roca said Reverb is for movers, shakers and creative types who want more than the basics. He said it is efficient, will have a unique voice in the market and a higher purposed to be more socially relevant, including “authentic experiences that rock.”

Reverb will have an entry experience that offers today’s relevant social media moment, a “fly-by” check-in experience (bypass, self or assisted), a lobby bar that does double duty for coffee and cocktails, a stage for performances, and a retail piece with a local connection.

Roca used all the buzzwords of the moment to describe concept: experiential, locally infused, healthful F&B, social positivity, next-gen service, high energy.

Among the amenities: The Sound Booth, a semi-private workspace/broadcasting studio; a flexible co-working and meeting space to generate incremental revenue; guest rooms with signature lighting in baths and modular furnishings, including a Murphy bed.

IHG’s new entry. Elie Maalouf, CEO of The Americas at InterContinental Hotels Group, told HOTELS 2017 is a big year of openings and that Crowne Plaza is “on a roll” with 50% of the brand’s Americas portfolio committed to the brand’s Accelerate program, which includes a US$200 million investment that IHG introduced in June 2016.

The big news to come next week is the launch of a new midscale brand positioned just below Holiday Inn and Holiday Inn Express. Maalouf said the new brand will be design led and tech focused and earn a rate about US$10-15 less than Holiday Inn Express. He said it will get its start in the U.S., will be a new-build product and has already garnered interest from developers.

The two Holiday brands continue to lead the system in growth with 800 committed to the news Express design, which Maalouf said is exceeding expectations on RevPAR growth and guest satisfaction.

Also, a new cloud-based reservation system will launch in Q2 this year and scale up from there with the system in place globally by the end of 2018.

Deitemeyer returns to IHR. Named CEO in mid-March after a long career with Omni Hotels, Mike Deitemeyer has returned to Interstate after many years to focus on taking third-party management giant Interstate Hotels & Resorts further with an initial focus on building the UK-heavy European portfolio. He is also looking for organic growth in Russia, where IHR has 11 hotels today, and considering M&A and organic growth in North America.

Deitemyer told HOTELS with 60 hotels operating in Europe, IHR has another 20 under development there and sees the continent as fertile ground.

He also wants to grow IHR’s presence in the full-service sector as current the company manages about 400 on the select-service side and only 150 full-service.

Acquisition isn’t out of the question as Deitemeyer said IHR’s owner as of May 2016, New York private equity firm Kohlberg & Company, is known for its “bolt-on” strategy.

In the meantime, Deitemeyer said he is also focused on strategically aligning resources with the growth strategy, as well as create a better company culture to cultivate more leaders.

Two Roads update. With Jamie Sabatier completely in charge at Two Roads after the exit of Niki Leondakis, he told HOTELS at NYU that the mash-up of Commune and Destination Hotels currently has 20 opportunities globally – signed and under development.

Two Roads partner in Asia, Alila, has 11 hotels open and five or six coming online this year. The big news, he said, is that the strong resort brand should be coming to the U.S. with more concrete information about six months away.

He said the Thompson said has a lot of momentum and the team is very active signing new deals. Dallas will come online next year and a Mexico property deal is in the works.

The downmarket Tommie brand, which false-started in New York City, will finally debut in the second half of next year in Hollywood, California. Four other Tommie deals are in the pipeline with Sabatier adding that getting one open is the key.

Sabatier added that they integration of the two companies is complete and the plan is to double down on the brand and guest experience sides as the company’s differentiator.

Accor about execution. AccorHotels Chief Development Officer Gaurav Bhushan said the company’s focus is on its newly acquired brands, ranging from those associated with FRHI and its latest lifestyle acquisition, 25Hours.

“This is Accor’s 50th year and there has been more change in the last three than in the first 47,” Bhushan quipped. “Execution is key. It’s great to acquire but we must deliver on our promise.”

He said a major market deal for the Raffles brand is coming shortly, as the flagship in Singapore goes through an extensive renovation. There are 12 Raffles open today with four more in the pipeline. A couple will open this year and the Middle East and Asia remain big focuses.

Surprisingly, Bhushan said Swissôtel has development traction in Europe, the Middle East and Asia, and the intent is to grow what has been a somewhat stagnant brand. The flagship in Singapore is going through a big renovation.

In addition to growing perhaps its biggest new opportunity, Fairmont, there is excitement around the potential of the 25Hours brand, including intent to take it global and into North America. There are seven open and seven signed – mostly under construction. Quite a few are under negotiation, according to Bhushan, and the brand’s innovation lab in Hamburg is busy.

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