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IHG Europe’s Development, Design & Openings magazine Holiday Inn Express ® launches the next generation of hotel Robert Shepherd interview with Chief Development Officer, Europe DEVELOPMENT Q U A R T E R LY DESIGNS GRAND 2 ISSUE InterContinental ® Dublin Following the hotel’s fast-track rebrand and the charm of Ireland’s capital Following the hotel’s fast-track rebrand and the charm of Ireland’s capital UNDER CONSTRUCTION HOLIDAY INN ® FRANKFURT- ALTE OPER

DQ (Development Quarterly) - Issue 2

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Page 1: DQ (Development Quarterly) - Issue 2

IHG Europe’s Development, Design & Openings magazine

Holiday Inn Express® launches the next generation of hotel

Robert Shepherdinterview with

Chief Development Officer, Europe

D E V E L O P M E N TQ U A R T E R L Y

DESIGNSGRAND

2ISSUE

InterContinental® DublinFollowing the hotel’s fast-track rebrand and the charm of Ireland’s capitalFollowing the hotel’s fast-track rebrand and the charm of Ireland’s capital

UNDER CONSTRUCTION

HOLIDAY INN®

FRANKFURT- ALTE OPER

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Your next growth opportunity

Holiday Inn Amsterdam - Arena Towers, opened May 2014

IHG® is one of the world's leading hotel companies. Our scale, experience and dedication to quality ensure that your next growth opportunity will be supported every step of the way: from signing, through the design phase, to opening and operating a successful hotel.

Whether you choose to franchise with us, or opt for an IHG management agreement, the diversity of our brand portfolio allows IHG hotels to meet guest needs whatever the occasion-ultimately adding up to better returns on your investment.

To find out more about developing your hotel with IHG, visit www.ihg.com/development

*Data correct as at 31 December 2014

IHG® hotels host over 161

million guest nights per annum,

710,000 rooms in over 4,800

hotels in nearly 100 countries

around the world.

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Editor’s letter… Welcome to issue twoIt is a cold, wintry, blue-sky day and I am sitting in one of my favourite places in Paris, the Café de la Paix at InterContinental Paris-Le Grand. It is early and the city is just stirring. I am a morning person. It is my favourite time of day; a time for pause and reflection.

It is here that I can really think about the last year and all the things we achieved at IHG. And what a year! It went so fast - as time seems to these days - but we achieved so much in what seemed like the blink of an eye.

It’s been exceptional. We did things we’ve never done before, like signing three InterContinental hotels; two of which have already opened. We signed every brand, we managed the change of ownership of around 20% of our portfolio and we made great progress in Germany. We achieved our growth targets and, importantly, we did this by opening the type of hotels we like.

Which brings us onto the future. Morning is also a time for ideas and plans. For embracing the day to come and plan the time ahead. So, as much as we enjoyed a fantastic 2014, the key will be maintaining that momentum this year and beyond. Success is about longevity, and if we can achieve that, we can truly win in the industry.

None of that would be possible without the incredible people we work with; our colleagues, agents, owners, asset managers, developers, and architects. We share a trust and a belief that we will succeed, and succeed together. As for my Development team, I am grateful to be surrounded by so many great people, who give their all to IHG every day, and energise me to lead them in achieving the great results I know we are all capable of. I hope you will enjoy this second edition of DQ and to see you all soon.

Credits: Editor-in-Chief: Catherine A. Ross / Contributors: Philippe Bijaoui | Rachel Corden | Abigail Goldsbrough | Sandra Plant | Matthew Yates / Photography: GDH-Photography.co.uk | HansonImages.net | PlainviewMedia.com | VisualEye.biz | IHG / Design: Marc Pattison | David Hughes (Redworks) / Print: Tim Sherringham (InnerWorkings)

contentsEditor’s letter… Welcome to issue two 1

Interview with… Robert Shepherd, 2 Chief Development Officer, Europe

InterContinental® Dublin: Investing in an Irish icon 4

Under Construction: Building Holiday Inn® 10 Frankfurt - Alte Oper from the ground up

Grand Designs: Piloting the next generation 12 of Holiday Inn Express®

Brand focus: Holiday Inn Express in Germany 16

Loyalty pays: What makes IHG Rewards Club® 19 so, well, rewarding?

A Day in the Life of… Emma Lindsay, 20 Head of Interior Design, Europe

IHG® on the road: Roadshows & conferences 21

Triumphs of 2014: Our hotel openings 22

Meet… the people who make IHG 29

We ask: What does Being #1 mean to you? 32

Philippe BijaouiVice President Development, Europe

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Chief Development Officer, Europe, IHG®

Robert ShepherdInterview with…

Robert Shepherd is the Chief Development Officer, IHG® Europe where his role is to lead development for all brands in Europe for franchised and managed hotels, overseeing deals through the design and pre-opening phases until the hotels open into the IHG system. In his spare time, he enjoys cycling and motorsport. He lives in Hampshire, UK, with his wife Susanna and two teenage children, Emily and William.

What was your first job?When I was in the sixth form, I was a furniture salesman at Texas Homecare. I worked in the showroom selling anything from kitchens to wardrobes to beds, lighting and all sorts. This was my introduction to sales. I remember my absolute delight at completing a big sale of a fully fitted kitchen and the bonus I was going to get from that!

You worked for WS Atkins on the famous Burj Al Arab hotel in Dubai when you first graduated. How did that inform your career?Dubai was iconic for me and my career. I learned a lot about leadership and relationships. I went out there as holiday cover for my boss for two weeks and ended up staying four years. By the time I decided to come home I was Deputy Commercial Manager, jointly leading a team of 25 surveyors. Those promotions offered real insight into the importance of relationships, which plays a huge part in my career today.

Have you always had leadership in mind for your career?I don’t think I ever had leadership in mind. It has just been a result of my efforts and skills. I knew growing up that I liked making stuff, so I got some work experience when I was 12 with a quantity surveyor to be in the construction industry. He turned up at our house to collect me in a BMW 735 CSi and I thought, ‘That’s what I want!’ But I’ve always wanted to have a tangible end product and today I take great pride in concluding deals and building and opening great hotels.

Your LinkedIn profile lists your key words as ‘focus’ and ‘energy’. How do you maintain those qualities?Those have been my key words on LinkedIn for a couple of years now, but it’s starting to show itself at work with our winning culture. Introducing our winning metrics is all about aligning our resources behind a common focus. I get a lot of energy spending time with my team, talking to them about how they’re doing, how they’re developing, offering coaching and feedback.

In terms of maintaining energy in my personal life, I like to get out on my bike and my son’s a keen cyclist so it’s something we enjoy together. There’s a double benefit there; physical and emotional energy. I’m very proud of both of my children. I’m delighted that, at 18, my daughter will still run to the door when she hears me come home and give me a hug.

Which IHG brands do you see growing in 2015?Holiday Inn Express® is a real growth vehicle with a lot of opportunity. Last year we launched the brand in Russia with the opening in Voronezh which is seeing great results already. In Germany, where we had a record year of signings in 2014, there is a great momentum and a lot more room for growth with Holiday Inn Express in particular. There’s more to come from Holiday Inn® too, as we replace the old estate which we removed over 2012 and 2013. There’s also real excitement around Hotel Indigo® and the boutique and lifestyle market, especially after completing the Kimpton acquisition, which now makes us the leader in that segment. “

“I get a lot of energy spending time with my team, talking to them about how they’re doing, how they’re developing, offering coaching and feedback.

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Welcome to the Neighbourhood.

Be part of our growth story.Hotel Indigo® brings together the best of both worlds; the unique design and personalised service of a boutique experience, with the assurance and convenience of a brand. With 61 hotels globally, 17 right here in Europe, Hotel Indigo® is coming soon to a neighbourhood near you.

Hotel Indigo® Madrid – Gran Via

hotelindigo.com* Data correct at 31 December 2014.

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InterContinental® Dublin - Rebranding an icon

On the morning of 1st January 2015, amidst New Year hangovers and the unforgiving Irish elements, the final piece of the jigsaw was put in place as signage went up on the new InterContinental® Dublin.

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For Tim Shearman of London & Regional Properties who engaged in a long-term franchise license agreement with IHG®, it was the crowning moment in what had been a whirlwind few weeks, “We signed the franchise licence agreement on 10th December. To open as an InterContinental on 1st January, it was a 21-day rebrand, which is really quite astounding… The thing that stands out is the flexibility and support that IHG gave us to get us over the line.”

Paul Downing, the interim General Manager, agrees. “It was, let’s say, intense. To complete everything in three weeks, with Christmas in the middle was a big ask, but we did it.” Paul has overseen many rebrands throughout his 30-year career. For him, it is about people management as much as logistics, “I have a critical path which I follow that includes about 100 items. That’s the sort of thing you have to do to manage deadlines and lead times. But getting to know the employees is a hugely important part of the transition. You have to be sensitive to the fact that many people have been here a long time and there can be almost a mourning process in a rebrand.”

”Gilles Goasdoue, Head of New Hotel Openings, Europe

InterContinental® Dublin is a great addition to the IHG® system and one of the fastest fast-track openings that we have done in the last 15 years.

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With such a lot of speculation about the rebrand, it was important that the staff heard any announcements through him and not the press. “We put together a communications strategy so staff were the first to know. We did five town hall meetings in one day to cover all the different staff shifts and within the same day IHG’s Chief Development Officer Robert Shepherd came over to chat to journalists. That was quite a hectic day, as you can imagine!”

It’s no wonder there was such fierce competition for the hotel. The economic landscape of Dublin has changed dramatically since the economic downturn. But with the five-star hotel market in the city running at increasing occupancy, it appears the Celtic Tiger might roar once more. Robert Shepherd expands, “The visitor numbers in Dublin are up. There are some new attractions in the city which has really turned a corner. We’ve seen three years of growth and the market expects more. So it’s great that we have our luxury halo brand in Dublin which has been a key city target for us for some time.”

That demand for luxury hotels is undoubtedly strengthened by the business market, and the commercial appeal of Ireland’s corporation tax laws. “There are a lot of new companies coming to Dublin, particularly high-tech, digital companies” says Tim Shearman. He’s not wrong. Look past the European headquarters of Google and Facebook; both within touching distance of the hotel, and you’ll see the likes of LinkedIn, PayPal, Amazon and Twitter. Tim continues, “Nearly 50% of our business in this hotel is to the MICE [meetings, incentives, conferences and exhibitions] segment. So our decision to go with the InterContinental brand was made upon the commercial success of the brand, which is the right fit for the location of the hotel.”

Tim has a long-established relationship with the brand, and the people behind it. “I have known IHG and the InterContinental

Hotels & Resorts brand for the last 14 years. I have to say the development team presented a very compelling business case, and did a lot of in-depth work at a very early stage.”

InterContinental® Dublin

Tim Shearman, Chief Operating Officer - Hotels, London & Regional Properties

It was a 21-day rebrand, which is really quite astounding.“ ”

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Paul Downing continues, “The hotel openings team is a fantastic idea because you have people dedicated to getting the hotel open. One of my biggest concerns was IT because things can go very wrong when transitioning from one booking system to another. But with the hotel openings team, it went amazingly smoothly. They have the best knowledge in the business about how to do these things. Guests went to bed in a Four Seasons and they woke up in an InterContinental and the system survived. We have been in very safe hands.”

Gilles Goasdoue, Head of New Hotel Openings for Europe, reflects, “The rebrand was fast and intense. InterContinental Dublin is a great addition to the IHG system and one of the fastest fast-track openings that we have done in the last 15 years. Most rebrandings take in excess of nine months and, not only did we rebrand this hotel in just 21 days, we had Christmas right in the middle of it! The hotel was at high occupancy during the period so the operations team and IHG

had to manage around an already busy schedule. In addition to collaboration between the hotel and the development, design, engineering, Fire and Life Safety and new hotel openings teams, we received great support from IHG colleagues in Atlanta, USA and Manilla, Philippines, who ensured that the hotel was plugged into the relevant systems. The colleagues who remained in the hotel were a highly engaged team and committed to move across to the InterContinental Hotels & Resorts brand. Not only did we train 38 people in a day - a NHOPs record - we worked hard to engage a great team of people who were clearly willing to learn and work hard to implement the InterContinental brand standards.”

And it is that collaborative effort that enabled the supersonic rebrand and will pave the way for this iconic hotel’s success. Tim Shearman concludes, “Having both parties aligned makes a success for sure. It is our first partnership with IHG and that’s why it’s so important for both parties that we absolutely get this right.” Well, so far so good.

Paul Downing, interim General Manager

People went to bed in a Four Seasons and they woke up in an InterContinental®.“ ”

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Historical, friendly, and bursting with the romance of its esteemed

heritage, this Unesco City of Literature attracts tourists,

businesses and presents a huge investment opportunity.

Elegant Georgian buildings nestle against cosy little pubs and

alongside its famous drinking haunts, the city boasts an array

of truly world-class cuisine. Staple sites like the Guinness

Storehouse, the spectacular cathedrals and the Medieval castle

have tourists flocking there. The newly nicknamed Silicon Docks

(the techie district spanning the Grand Canal Docks) sees a steady

stream of business travellers, while students at the prestigious

Trinity College inject a healthy mix of academia and vivaciousness

to this most culturally and commercially appealing of cities.

Why Dublin?

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ROMAN EHRENTRAUT IS PROJECT MANAGER AT UBM, AN AUSTRIAN BASED REAL ESTATE DEVELOPMENT COMPANY THAT DEVELOPS HOTELS AND OFFICE BUILDINGS ALL ACROSS EUROPE. WE SPOKE TO HIM ABOUT HIS LATEST PROJECT; HOLIDAY INN® FRANKFURT - ALTE OPER, AND THE BENEFITS OF BUILDING A HOTEL FROM SCRATCH.

Why did you choose this location for Holiday Inn®?UBM builds everywhere in Europe, from Paris all the way to Russia. In partnership with IHG®, we are starting to build more hotels in Germany. The location of this hotel is good. It’s maybe a two or three minute walk from Frankfurt railway station, five minutes walk from the Alte Oper and also downtown the city centre of Frankfurt is very close. We are also very close to office buildings, so for the typical business guest, this is a very good location.

Why the decision to replace the existing building?Before we started there was an ugly office building from the 1970s that we knocked down. We investigated to see whether it was possible to fit a hotel in the existing structure, but we found out that it wasn’t possible in an economic way, so we decided to demolish the building and build the hotel starting from the foundations.

What are UBM’s objectives for this hotel?UBM’s objective is to create a unique hotel which attracts a lot of business people who are working nearby. We want to make them feel more comfortable than in other hotels. They should feel at home, so they want to come back to the Holiday Inn Frankfurt - Alte Oper time and time again.

This new construction uses Insta-Bloc foundations. What is Insta-Bloc?Insta-Bloc is a very special system. It is made in Austria and is precast concrete block integrated with all the mechanical pipes which is installed during the construction process of the concrete works. It helps to speed up all the mechanical installations. By using Insta-Bloc we reduced the construction time by approximately one month.

What support has IHG® given you through the process?We received a lot of support during the construction process. The whole design process was done together with the architects from IHG. We addressed all our problems and questions with IHG, which were quickly answered and solved.

Tell us about some of the challenges you face in the pre-opening of a hotel?The biggest challenge we faced during the construction process was demolishing the old building. Thankfully we started the whole procedure early enough to overcome any issues that we encountered along the way. We were aware that the design process of building such a hotel would be a very long and potentially difficult one and I have to say we received a lot of back-up from IHG.

Project Manager, UBM

Roman EhrentrautInterview with…

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Under Construction

BUILDING HOLIDAY INN® FRANKFURT - ALTE OPER FROM THE GROUND UP

Frankfurt; city of finance, culture and commerce. Its trade fairs are world famous, its art scene is celebrated, its skyscrapers are unique enough to have earned it the nickname ‘Mainhatten’. It is a thriving city in what is a healthy German market. So when IHG® saw potential for expansion of the Holiday Inn® brand there, it was a no brainer. And so Holiday Inn Frankfurt - Alte Oper was born.

Signed around two years ago, the hotel lies in the central banking district, close to major transport hubs and trade fair venues. As always, it was about getting the right property with the right brand in the right location. While the location was never in question, the existing property was. Roman Ehrentraut, Project Manager at real estate development company UBM explains, “Working within the constraints of the existing building just wasn’t feasible, so we started from scratch. This area has lots of visitors, lots of business guests and they expect a nice building.”

The construction process was extensive. Having ticked the many boxes and secured the many approvals from relevant bodies, the demolition of the eyesore that had stood for 40 years began. The decision was made to build the new property using Insta-Bloc.

Hans-Ulrich Gonser, Director of Design and Engineering at IHG, Europe told us more, “Insta-Bloc is a pre-fabricated riser system which connects the guest bathroom with all the utilities. It’s great because you can install it in any weather, which cuts construction time. It also increases the Fire and Life Safety because the fire compartmentation is secured.”

Both Hans and Roman estimate that the system shaved about a month off the construction time. In fact, so far the whole project has run ahead of schedule thanks to a combination of smart construction decisions and, of course, some classic German efficiency.

Building from the ground up has certainly ensured the building now looks suitably swish for its business district location. And since Frankfurt is the largest financial centre in continental Europe, this is a premium site suited to a preferred brand. Martin Bowen, Associate Vice President Development at IHG, Germany offers some more colour on the area, “It is called the West End, which is the banking quarter, surrounded by offices. Frankfurt is a very good city for business. The fairground is very near, the main station is a five minute walk and of course you have the Alte Oper, museums and top new exhibitions. This variety of visitors will contribute to the hotel’s success.”

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Martin Bowen, Associate Vice President Development, Europe

Thumbs up: (l-r) General Manager Michael Deutsch on site with Roman Ehrentraut of UBM and Martin Bowen of IHG

Given the captive audience, it seems natural that Holiday Inn Frankfurt - Alte Oper will be one of the first in Germany to have the Open Lobby. The cohesive nature of Open Lobby, with its all-day dining, its media and IT lounges, its To-Go Café tap into the high footfall of the area; something a typical lobby wouldn’t have done justice.

While the ideal location and innovative construction process pushed the project ahead, perhaps the most important factor in the smooth running of this deal was the alignment between the investor, the operator and the lessee. UBM set up a Special Purpose Vehicle (SPV) to lease on a long-term agreement with Union Investment, who were involved at a very early stage. Andreas Löcher, Head of Division, Investment Management Hotel at Union Investment Real Estate reveals the appeal of hotel investments, “Union Investment have a strong 40-year history in hotel assets. Hotels have proven to be a very good contributor, adding stability to our cash flow as well as a good diversification within our portfolio.”

Going forward, the SPV will continue with the asset management of the hotel, under the management agreement with IHG, which is an achievement in a country that is traditionally lease focused. “It is a great step forward for IHG because Germany is a lease dominated market.” Martin Bowen expands, “We only ever have a few opportunities to manage, but we worked together with our franchisees and since we are such an experienced company in managing hotels, it worked out.”

Holiday Inn Frankfurt - Alte Oper is a great example of what can happen when all the elements fit together to make a project work. On course to finish ahead of schedule, the 249-room property is set to become a halo Holiday Inn in Germany. It is a project that Martin Bowen is particularly looking forward to opening. “The Holiday Inn brand is an important growth driver for us here in Germany and IHG are second to none for system delivery. We have a great brand and a great location, and I look forward to making our management agreement work with the help of our partners UBM and Union Investment.”

“This a great step forward for IHG® in Germany

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A new breed of hotelHaving been unveiled to much acclaim at the IHG® Europe Conference in Athens last November, the next generation of Holiday Inn Express® is being rolled out across Europe. But how has this change come about and what does it mean for the brand that is, globally, IHG’s biggest.

Holiday Inn Express is IHG’s best-selling brand. Fact. So why would the company want to shake up such a successful model? Shouldn’t it be a case of, ‘If it ain’t broke, don’t fix it’? Martin Bowen, Associate Vice President, Development, Germany certainly doesn’t think so, “Standing still is not acceptable. The competition doesn’t sleep, so neither should we. To devise this next generation shows our franchisees that we know where the market is going and we listen to them when they propose something.”

Listening to feedback has been a major part of the move, which Karan Khanna, Vice President of Design and Engineering, Europe is keen to emphasise, is not a rebrand. “The brand positioning of Holiday Inn Express is already spot on, so the next generation is definitely not a rebrand or a repositioning, but it is more than a refresh. The current scheme was rolled out in 2009 and tastes have evolved, technology has evolved, the way people use space has evolved.”

To establish exactly what that evolution comprised demanded extensive research from numerous teams. Karan continues, “Generation four definitely hasn’t come from someone sitting in a design studio coming up with what they think people might like. It has been hugely collaborative with the brand team, the design team, the F&B team all constantly sharing information with guests and owners. These guys are the ones who deal with it on a day-to-day level, so we actively sought their feedback.”

So what were their findings? What exactly are the guests from Generation X and Y doing? And, equally, what will the Millennials and the Digital Natives be doing in the future? Currently, much of the change is around working habits. Where guests traditionally worked on laptops at desks, they have moved to using tablets and mobiles on their bed, so rooms have been adjusted accordingly, with more emphasis on beds and comfort than desk space.

In addition to behavioural changes in guest rooms, findings revealed that people want more from public areas, “Owners have been telling us that from 10am onwards, the breakfast area isn’t utilised as much as it could be.” Karan explains, “Holiday Inn Express is a concept that is all about efficiency and that didn’t seem to be an efficient use of space.”

Holiday Inn Express®Piloting the Next Generation

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““The headline is not that it’s coming,

the headline is that it’s hereAlistair Twiname, Director Design & Innovation, Europe

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It also became clear that an overhaul of F&B was required, so the next

generation will see a tiered approach, with options for bigger menus

without the need for extra F&B staff. The principles are about offering

options to fit the demand drivers of each hotel.

But for any standards change, the practicalities of execution are key,

something that Director of Design and Innovation, Europe, Alistair

Twiname is well aware of. “We have found a soft refurb that works

within a good minimum scope. That option is to retain your case

goods, and do your carpets, curtains, artworks and decor in general,

and you really notice how much better it looks… It would be lovely

if we could do them all from scratch, but you can actually do a soft

refurb with minimal disruption and without losing much room time if

you’re clever about it.”

With all the elements now in place, the next generation of Holiday Inn

Express is ready to roll out across Europe, and it’s been a rewarding

journey for the many teams involved. Alistair concludes, “What is

exciting is the speed at which all that research has become a reality.

We have a pilot design that you can install today. The headline is not

that it’s coming, the headline is that it’s here.”

Number crunch: *

- Holiday Inn Express has over 2,300 open hotels

globally, with a total of over 229,000 rooms

- There are over 500 hotels and 62,000 rooms in the

global pipeline

- On average, Holiday Inn Express opens two hotels

a week globally

- Holiday Inn Express hosts 48 million guests nights

around the world every year

- Holiday Inn Express has hotels in over 30 countries

around the world

* Data correct as at 31 December 2014

Holiday Inn Express®Piloting the Next Generation

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Martin Bowen joined IHG® from Accor in 1998. As Associate Vice President of Development Germany, he is responsible for growing IHG’s brand distribution in the region, through franchising and management services. Outside of work, Martin gives presentations at the International University of Applied Sciences in Bad Honnef and is an active member of his local tennis club. He lives with his wife Marian in Bavaria and has two grown-up children, Daniel and Clara.

What was your first job?I was a dancing teacher in the evening after school. I just love dancing. I started when I was 13 and now my daughter has carried on the tradition. She is on the stage, in musicals. While at university I worked in McDonalds, where I met my wife. I was behind the grill and she was selling the burgers! It was in Munich in 1981 and we were married in 1982, so we’ve been married for 33 years this year. I knew immediately when I met her. That’s one of my things; when I know something, I know yes or no straight away. I am the right guy for first impressions.

Does that help with being a developer?As a developer your first instinct is to do a deal, do a deal, do a deal. You are very deal driven. But, if you don’t focus and prioritise, you won’t be successful. That means being able to say no quickly and move on. You can waste an awful lot of time otherwise.

How did you get into development?I worked in the headquarters of Tengelmann supermarket chain where I was in charge of lease agreements and utility bills. On pretty much my first day there, my boss drove me to a village, opened the door and said, ‘We need a new store here. When you find a site, call me.’ It took me four days, but I found a site and I have been in development ever since.

What has kept you with IHG® for so long?Because it doesn’t get boring. There’s still growth potential. There were no Holiday Inn Express® hotels in Germany before I joined and now there are 26*, so that gives you not only a challenge but great job satisfaction and ownership. They were my babies, and they are still my babies! I still know most of the general managers and they still know me. Also the company has always been open to my suggestions. I have always felt taken seriously. Germany just had its best year of signings in 2014. It is fulfilling when the company takes on your ideas and you evolve together.

What makes a successful developer?Integrity. Honesty. Being trustful and also trusting. Building a rapport and being approachable. Being available and having a service-oriented mindset. Of course it’s about money, but it’s not all about money. We are a support team really. That is the key in the relationship with our franchisees; that they feel part of a family.

Associate Vice President Development, Germany, IHG®

Martin Bowen30 seconds with…

“I knew immediately when I met [my wife]. That’s one of my things; when I know something, I know yes or no straight away… You can waste an awful lot of time otherwise.

* Open hotels correct as at 31 December 2014

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Holiday Inn Express® in GermanyBrand focus:

This year, Germany is looking to build on the record breaking year it celebrated in 2014. With more signings than ever before, this key market is steadily expanding. But while IHG® brands across the board have benefited from that growth, one in particular has led the way: Holiday Inn Express®.

“Holiday Inn Express is such a good fit with the German consumer,” explains Robert Shepherd, Chief Development Officer, Europe, “It has that simple, high quality balance of a value for money offer. It gives you everything you need and nothing you don’t. As we say, it’s Simple. Smart. Spot on.”

Apollo landingThe brand’s reputation as a smart model that delivers has been one of the foundations for its growth in Germany. When American private equity investor Apollo Management International LLP made their first foray into Europe with the purchase of 18 IHG hotels last year, 12 of those were located in Germany. Of those, eight were Holiday Inn Express hotels.

So with two-thirds of their German portfolio being the Holiday Inn Express brand, the appetite was there for Apollo Management International LLP to sign a long-term contract extension. Having evaluated the capex plans for their newly acquired German properties, they also agreed to make a capital investment in a sure sign of commitment to long-term growth in this key market.

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“The brand’s reputation as a smart model that delivers has been one of the foundations for its growth in Germany. “

“Created specifically for the complex German market, Franchise Plus enables IHG® to tailor capital support to a specific owner and deal.

Tailoring successGrowth in Germany has been - and will continue to be - fuelled in part by a more tailored approach to signings. Through Multiple Development Agreements (MDAs) and the Franchise Plus package, IHG has devised a solution to financially support franchisees in the growth of their businesses. Created specifically for Germany’s complex, lease-dominated market, Franchise Plus enables IHG to tailor capital support to a specific owner and deal.

The Franchise Plus programme benefits franchisees who have an existing relationship with IHG and who want to undertake several hotel projects by multiple contracts. Importantly, it also encourages new hotel owners to brand their properties with IHG brands; something that is particularly applicable in Germany, where over 50% of the hotel market is unbranded. This presents a massive opportunity, especially in the midscale segment.

Masters of midscaleFor Holiday Inn Express, it is a perfect storm of market positioning, consumer demand and brand evolution. The Holiday Inn family are masters of the midscale segment, making continued domination in Germany entirely achievable in 2015 and beyond. Robert Shepherd concludes, “Led by Holiday Inn Express, I believe that Germany will continue to go from strength to strength. Holiday Inn Express has come a long way in this country, and it has a lot further to go.”

“Holiday Inn Express® has come a long way in this country, and it has a lot further to goRobert Shepherd, Chief Development Officer, Europe

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MORE HOME THAN HOTEL

Staybridge Suites® is the innovative, all-suites, extended stay brand from IHG®, designed for

upscale business and leisure travellers who want to enjoy the best of home and hotel.

Guests enjoy the friendliness of Staybridge Suites combined with homely public areas,

in-suite cooking facilities and the complimentary hot breakfast served every day.

The brand is perfect for any location where there’s demand for extended stay accommodation.

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MORE HOME THAN HOTEL

Staybridge Suites® is the innovative, all-suites, extended stay brand from IHG®, designed for

upscale business and leisure travellers who want to enjoy the best of home and hotel.

Guests enjoy the friendliness of Staybridge Suites combined with homely public areas,

in-suite cooking facilities and the complimentary hot breakfast served every day.

The brand is perfect for any location where there’s demand for extended stay accommodation.

Members are 70% more likely

to be word ofmouth

advocates

%

9 out of 10 members book direct

Versus 3 out of 10 non-members

OF REVENUE

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18 %

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free nights of points were donated to charity in one year

IHG® SHELTER INA STORM

can be exchanged for

AIRMILESPoints new members

enrolled in 2014

5 million

200

HOTEL LOYALTY PROGRAMME

THE WORLD’S FIRST,AND LARGESTHOTEL LOYALTY PROGRAMME

THE WORLD’S FIRST,AND LARGESTHOTEL LOYALTY PROGRAMME

THE WORLD’S FIRST,AND LARGESTHOTEL LOYALTY PROGRAMME

THE WORLD’S FIRST,AND LARGEST

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*As of 31 December 2014

Members

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review

19

Page 22: DQ (Development Quarterly) - Issue 2

Emma LindsayA Day in the Life of…

Head of Interior Design, Europe

Emma Lindsay joined IHG® in January 2014 as the company’s first ever Head of Interior Design for Europe. She discovered her love of interior design when she was only five years old, and hasn’t looked back since. Emma started her career as an in-house Interior Designer for Thistle Hotels. Since then she has worked at GA Design International and followed this by becoming Interior Design Director at Marriott for six years before joining IHG. Emma lives in Esher, UK, with her boyfriend Toby and her cat, Cat Stevens.

“Given the nature of my job, I don’t really have a fixed routine, apart from getting up at 7am if possible. Earlier is not fun at all for me; I’m a night owl. Once I get to work at IHG’s head office in Denham, I go through the emails that have come in overnight and catch up with Alistair and Henry from my team. We’re here to help the Design Architects get projects over the line; to give them that final 10% push and add that finishing touch. We provide suggestions to elements we think might need improvement – from sketch layouts to FF&E selection. You always have to leave your personal taste at the door and consider what is right for the brand and the guest experience.”

“Day to day varies depending on which project requires input. We can be sent to look at future projects, existing hotels that are coming up for renovation or heading to a new build for a site inspection. Every project is different and unique and we aim to help owners and developers get the best possible solution for their investment.”

“2014 was a full-on year, and my first with IHG, so after work I relax or go for a run. Every week I try to run up to 20k. It helps me unwind at the end of what will no doubt have been a busy day.”

“When I was little my godfather taught me to draw. Neither of my parents are particularly creative, but he went to the Royal College of Art. Every spring he would get me to draw a daffodil… in his office today he has over ten daffodils on his wall, he loved to see my progression!”

“He bought me a Ferrari 348 toy car, which I obsessively drew over and over. So, one day, when I was five years old, my dad asked me what I wanted to be when I grew up, I said, ‘A designer for Pininfarina’ which is one of the famous Ferrari designers. He said, in true Northern style, ‘No lass, girls don’t design cars’, so I said, ‘An architect then’ but he said he couldn’t afford the University fees, so finally I said, ‘An interior designer’ and he went out the next day and bought me a Crayola Interior Design Kit. It had a plastic drawing board, dot to dot sofas and a parallel motion and that was it! I was five and it just went from there.”

You always have to leave your personal taste at the door and

consider what is right for the brand and the guest experience.“ One day, when I was five years old, my dad asked

me what I wanted to be when I grew up and I said, ‘An interior designer’. He went out the next day and

bought me a Crayola Interior Design Kit and that was it!

““

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IHG® rounded off a fantastic 2014 with a host of events, including the mammoth IHG Europe Conference in Athens which brought together our owners, general managers and corporate colleagues from across the region. This year we look forward to seeing you at the following events around Europe:

Plus, keep an eye out for more information on the following roadshows that IHG will host in 2015:

Italy - May │ France - June │ Warsaw - September │ London - November │ Istanbul - November

Deloitte In Extenso Paris, 13 February

International Hotel Investment Forum Berlin, 2-4 March

MIPIM Cannes, 13-15 March

Global Lodging Forum Paris, 13-14 April

Boutique Summit London, 20-21 May

Serviced Apartment Summit London, 7-8 July

Expo Real Munich, 7-8 July

Annual Hotel Conference Manchester, 14-15 October

Russia & CIS Hotel Investment Conference Moscow, 20-21 October

Deloitte European Hotel Investment Conference London, 3-4 November

International Hotels Investment and Design Forum Austria and Eastern Europe Vienna, 26 November

Hotel and Tourism Trends Poland Warsaw, November 2014

Shaping our futureLOOKING FORWARD TO 2015…

Conferences in 2015

IHG® Roadshows in 2015

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05

24

25

27

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26

28 30

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The IHG® ambition to be #1 for owners, guests and colleagues is, in its simplest

form, about winning. In 2014, the European Development, Design & Openings

team opened 33 great hotels and signed many exciting new deals. From the first

meeting to discuss a new project the team works to enable your vision – advising

on brand selection, design and build, staffing and technology and supporting the

team right up to the successful opening of the hotel. This helps ensure that

you are connected to the value that IHG brings from the very beginning.

2014OPENINGSWe create Great Hotels Guests Love

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17

18

18

23

21

22

2014 Openings

01 Holiday Inn Express® Dijon, France

02 Crowne Plaza® Lyon - Cite Internationale, France

03 Holiday Inn Express® Strasbourg - Centre, France

04 Hotel Indigo® Paris - Opera, France

05 Holiday Inn Express® Heidelberg - City Centre, Germany

06 Holiday Inn® Berlin - City East Side, Germany

07 Holiday Inn Express® Friedrichshafen, Germany

08 Holiday Inn Express® Nuremberg City - Hauptbahnhof, Germany

09 InterContinental® Dublin, Ireland

10 Holiday Inn® Rome - Pisana, Italy

11 Holiday Inn Express® Rome - East, Italy

12 Hotel Indigo® Rome - St. George, Italy

13 Holiday Inn® Amsterdam - Arena Towers, Netherlands (Holland)

14 Holiday Inn Express® Amsterdam - Arena Towers, Netherlands (Holland)

15 Crowne Plaza® Porto, Portugal

16 InterContinental® Lisbon, Portugal

17 Hotel Indigo® St. Petersburg - Tchaikovskogo, Russia

18 Holiday Inn Express® Voronezh - Kirova, Russia

19 Crowne Plaza® Barcelona - Fira Center, Spain

20 Hotel Indigo® Madrid - Gran Via, Spain

21 Holiday Inn® Gaziantep - Sehitkamil ,Turkey

22 Crowne Plaza® Istanbul - Oryapark, Turkey

23 Holiday Inn® Ankara - Cukurambar, Turkey

24 Holiday Inn Express® Edinburgh Airport, UK

25 Holiday Inn® Darlington - North A1M, Jct.59, UK

26 Holiday Inn Express® Manchester Airport, UK

27 Holiday Inn® Dumfries, UK

28 Holiday Inn® Cardiff - North M4, Jct.32, UK

29 Holiday Inn® London - West, UK

30 Holiday Inn® London - Heathrow T5, UK

31 Holiday Inn Express® Leigh - Sports Village, UK

32 Holiday Inn Express® Wakefield, UK

33 Holiday Inn Express® London - Vauxhall Nine Elms, UK

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2014 OPENINGS

TRIUMPHS OF 2014InterContinental® Dublin197 rooms, FranchisedSigned & Opened in December

Holiday Inn Express® Voronezh - Kirova

“I have to say the development team presented a very compelling business case, and did a lot of in-depth work at a very early stage. My experience with IHG® has been very positive.”

Tim Shearman, Chief Operating Officer - Hotels, London & Regional Properties

“We’re thrilled to be opening our first Holiday Inn Express hotel under our MDA with IHG and also our first modular constructed hotel. Our agreement with IHG is of strategic importance to us, providing us with an excellent platform for further

Holiday Inn® Ankara - Çukurambar140 rooms, FranchisedOpened in November

InterContinental® Lisbon331 rooms, ManagedSigned in August, Opened in October

“We’re very excited to be working with one of the leading hotel companies in the world - InterContinental Hotels Group. The dynamism of IHG’s brands impressed us the most during our search for a hotel company to partner with.”

Galip Asal, Owner, Aska Otomotiv ve Petrol Urunleri Tic

“We are very much looking forward to working alongside IHG with two of the most successful hotel brands in the industry.”

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145 rooms, FranchisedOpened in October

Holiday Inn® London - West225 rooms, FranchisedSigned in May, Opened in August

growth as we continue to develop hotels throughout Russia.”

Michael Johnston, Chief Executive Officer, Regional Hotel Chain LLC

“We are very pleased to be rebranding our property as a Holiday Inn. This is our first of hopefully many franchises with IHG and we are excited to bring this hotel into the IHG family. Given the quality of the hotel, the team we have in place and the support from IHG, this venture is going to be a very successful one.”

Bassel Saad, Owner, Mango Hotels

Hotel Indigo® Madrid - Gran Via85 rooms, FranchisedOpened in April

Crowne Plaza® Porto232 rooms, ManagedSigned in August, Opened in October

“This newest addition to the brand truly encapsulates the style and charm of Madrid, a chic cosmopolitan city for guests to enjoy both inside and out. We look forward to welcoming guests to this special neighbourhood.”

Tom Rowntree, Vice President Brand Management Upscale & Luxury Brands, Europe, IHG®

Urs Gassman, Chief Executive Officer, Global Hotels & Resorts

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Hotel Indigo® Rome - St. George64 rooms, FranchisedOpened in March

2014TRIUMPHS OF 2014

Crowne Plaza® Barcelona - Fira Center276 rooms, FranchisedOpened in February

OPENINGS

Holiday Inn® Amsterdam - Arena Towers120 rooms, FranchisedOpened in May

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Holiday Inn Express® Amsterdam - Arena Towers323 rooms, FranchisedOpened in May

Holiday Inn® Berlin - City East Side217 rooms, FranchisedOpened in April

Hotel Indigo® Paris - Opera57 rooms, ManagedOpened in September

Crowne Plaza® Lyon - Cite Internationale156 rooms, FranchisedOpened in February

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Make success 1°C more successful.We understand that our guests are driven to succeed. And so are our owners. In the right locations, the Crowne Plaza® brand outperforms its competition and can drive above average gross operating profit for owners. Celebrate success with Crowne Plaza® Hotels & Resorts.

crowneplaza.com/youfirst

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Page 31: DQ (Development Quarterly) - Issue 2

This year Peter Vermeer retires from IHG® after almost 40 years with the company. He joined under Bass in 1977 as Assistant General Manager in Hotel Eretria Beach, Greece and during his career has held positions in Spain, Austria, Switzerland, Ibiza, Morocco and Belgium. After a number of years in the Hotel Opening Division, he joined the Development team in 1996. He has been Vice President of Development Benelux & Eastern Europe since 2005. Peter lives in Brussels with his wife Anne. They have two sons and four grandchildren.

What made you decide to stay at IHG® so long?IHG helped me to achieve my personal goals and my personal targets. I always worked for bosses who knew what they were doing, they knew who I was and they knew how to get more out of me. That worked very well for me and in the end, the company has never let me down. I have had a great life with IHG.

What makes IHG® different?IHG are the only real franchising system. Since the 50s, we have been the best in class. We know it much better than the others. It is in our blood, our DNA. We live it and it means we are already steps ahead of everyone else.

What has made you successful?There are three elements. It is the company. It is my fit into the company. And there is a bit of luck too. Taking the right decisions at the right time, because you could have taken the wrong decisions and it would have gone a different way. Is it about winning? Is it about being a striver? I think I’m a bit of a striver. I always want to do more and do it better.

So you are competitive?Oh yes. I want to be the best. Because that gives me pride and it gives me recognition, both generally but also to myself. I have always set myself targets and always want to achieve those targets and climb up the ladder. I’ve been like this from a little boy right up to now.

What are your targets now that you are retiring?I am terribly confused at the moment. The thing I want for the next few months is to empty my head and then I have to reinvent myself. I have to reinvent myself as a grandfather, maybe as a father, as a husband, as a gardener, as a different Peter Vermeer. Or perhaps the Peter Vermeer. Perhaps there is something that might come out that I didn’t see because I was so focused on being the best. A central part of Peter Vermeer might come out now. Like an optical illusion, there is always another perspective.

What advice would you offer upcoming developers?In the past we asked, ‘What is the most important thing for a successful hotel?’ and Conrad Hilton famously said, ‘It’s location, location, location.’ It’s a great mantra but I think what developers do is more about trust, trust, trust. In my career I have tried to create trust between me and owners. They must trust me because I am a professional. I judge the location. I judge what brand will suit the location. It’s about having the guts to say, ‘I’m sorry, but if I were you I wouldn’t do that’. That honesty builds trust, which is a great foundation for your relationship.

What has been your favourite memory?I often relay my memories to what happened in history. I was in South Africa when Mandela became president. I was in Israel when Yitzhak Rabin was assassinated. I lived in Spain under Franco and saw the country grow through the democracy. I worked in Greece when the new democracy just came. History seems to follow me around! There are many memories and, over the years, I found being flexible was key. I didn’t mind going to Greece, or working in Ibiza for four years; the best four years of my life [laughs]! Working at these outpost locations gave me a tremendous amount of freedom and from that I was able to create my own success story.

Why have you decided to retire now?I want to end while I can still deliver. I don’t want to end as the old man who used to be good but isn’t any more. It is pedantic, but to end on glory, on your own high is important. My high might not be as high as others, but as long as I have finished on the highest I can personally be, I am happy.

Peter VermeerInterview with…

“I have to reinvent myself as a grandfather, maybe as a father, as a husband, as a gardener, as a different Peter Vermeer. Or perhaps the Peter Vermeer.

“I have had a great life with IHG®.

Vice President Development, Benelux & Eastern Europe, IHG®

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Andrew Shaw joined IHG® as Associate Vice President of Development for UK & Ireland in January 2015. He talked to DQ about what brought him to IHG, what it takes to be a successful developer and why Airbnb’s bark might be worse than its bite.

Tell us about your career to date...I did a degree in Hotel Management at Manchester Polytechnic as it was known then. A big chunk of my career was with TRI Hospitality as a consultant, which I did for 14 years before doing brokerage with Knight Frank. Advisory has been a big part of my career, but I moved to the Development side of the table heading up the UK & Ireland Development team at Accor for eight years, and now I’m doing a similar role at IHG.

Why IHG®?My decision to move from Accor to IHG was based on strengths of the IHG brands among the competition. It’s not only my opinion; BDRC surveys and general market sentiment is that IHG is ahead in terms of being a go-to suite of brands that franchisees and customer markets favour.

What makes a successful brand?There are plenty of brands that are well known in certain markets, but they’re not hugely successful because they don’t have a support network. IT, sales, marketing and training are services that wrap around a brand and give it credibility. The profile IHG has as a superior service provider is important.

What makes a successful developer?

It’s in your DNA to some extent. You have to be able to get on with people. There has to be a meeting of minds. You also need to absorb a lot of information and disseminate key bits to franchisees. Then, if they want to dig deeper, you know who to bring in to the process. That’s how IHG has built itself, on its people and processes.

What’s the key to being successful in hospitality in general?Service. We are a service industry after all. You’ve got to be able to take criticism and respond with a smile. Ultimately, it’s about keeping people happy and getting them to favour your brand over others.

What rules in business; head or heart?Both. You’ve got to put yourself in the position of the owner who might be led by their heart or aspirations. The role of the developer is to recognise that and be the head for figures and practicalities. They might want to put an InterContinental® on their site, but looking at the numbers, you can see a Holiday Inn® offers more ROI. It’s a fine balance.

What trends do you see for 2015?I think services like Airbnb will need to be regulated more, which is a challenge. There has always been a self catering market, but there is a huge market for people who want the comfort, consistency and security of a full service hotel. Airbnb is certainly not a flash in the pan, but I don’t think it is as big a threat as the media might have you believe.

Andrew ShawIntroducing…

“Development is in your DNA… You have to be able to get on with people. There has to be a meeting of minds.

Associate Vice President Development, UK & Ireland, IHG®

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Willemijn Geels joined IHG® in January 2015 as Associate Vice President of Development for Northern & Eastern Europe. Prior to joining IHG, Willemijn was Director of Development & Acquisitions at Louvre Hotels Group, responsible for the group’s expansion in Europe. Willemijn holds an MBA from Essec and lives with her husband and daughter Emma in Paris.

Why have you decided to join IHG®?I wanted to be part of the largest hotel company in the world! My very first internship was at InterContinental® Paris-Le Grand more than 15 years ago. That’s where I discovered different aspects of the trade and became hooked on the hotel business. I’m very happy to come back to IHG at a this point in my career.

What makes a successful developer?You have to be outgoing, open minded and a go-getter. You need to be self-motivated and able to deal with frustration because we look at a lot of projects but only a few get to the finish. You really have to believe in the project and do everything you can to push it forward.

How do you get projects over the line?Our business is a people’s business and if you manage to get people on board, you are heading in the right direction. Of course it has to be feasible and there needs to be ROI, but if you can get people to believe in a project, you have foundations for success. If they see you believe in it, then they believe in it.

What are the biggest challenges owners face at the moment?Financing is still hard to obtain and lending terms are not very investor friendly. Although interest rates are low, leverage ratios are subdued and significant collateral is required to complete any financing package for a new development. This is one of the reasons that owners decide to join a brand. Banks want to see that there’s a brand, and all the system supports, behind it.

What trends do you see for 2015?We have to be at the forefront of technology, like mobile check-in and check-out and payment via smartphones. We also have to embrace social media. It can make or break reputations so it is important to engage with. I think lifestyle brands will become more important in the coming years. We are seeing it especially in the mid-market and upscale sections. It’s becoming more about a personalised product and service, so I see opportunity for Hotel Indigo® in Europe because of that. In the midscale segment, I think products will evolve to become more customer and experience oriented, like Holiday Inn® Open Lobby.

Describe your average day...Hardly any day is the same in development. I may be checking a new location for development, negotiating a franchise or management contract with a new investor, working on the business plan for a new project or finalising the contract together with the colleagues from legal department. It is a truly versatile job. That’s why I love it!

Willemijn GeelsIntroducing…

“If you can get people to believe in a project, you have foundations for success.

Associate Vice President Development, Northern & Eastern Europe, IHG®

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Andrew Shaw, Associate Vice President Development, UK & Ireland, IHG®

“To be number one, you can’t afford to lose site of your brands and their guest appeal. You can’t neglect the fundamentals of a hospitality company, which is service. You might be number one in terms of position or market dominance, but it will be a short lived position.”

Philippe Bijaoui, Vice President Development, Europe, IHG“It’s when you are indisputably number one. It’s absolute. It’s unarguable. It’s being number one in more ways than just on paper, in stats and figures. It’s being perceived as number one too; being number one in people’s minds and hearts.”

Tim Shearman, Chief Operating Officer - Hotels, London & Regional Properties“It’s about successful and sustainable profitability. We achieve that through having the best people, who enjoy working with us and are commercially driven, which makes for success. Keep that format alive, and you can be number one.”

Martin Bowen, Associate Vice President Development, Germany, IHG“It is very much about longevity and sustainability. It’s no good if you win one year and the next year you’re forgotten about. If you can say you were always honest, always sincere, don’t have regrets, you never over promised and you have a trust in your business and your personal life, you create an environment where you can and will win.”

Peter Vermeer, Vice President Development, Benelux & Eastern Europe, IHG“Being number one is simply being the best in the room.”

Willemijn Geels, Associate Vice President Development, Northern & Eastern Europe, IHG“It means that people have very high expectations and we should not rest on our achievements. If your company is number one, you feel a responsibility to represent that and work hard to keep the company on top.”

Robert Shepherd, Chief Development Officer, Europe, IHG“It means being better, not necessarily biggest. It means doing it better than the rest, which means having better brands with greater loyalty from our guests, from doing things the right way with our owners, putting the right hotels in the right places, not going after growth for growth’s sake and, essentially, delivering on our brand promises day in and day out.”

Paul Downing, Consultant and interim General Manager, InterContinental® Dublin“It has to be consistency. It is challenging, particularly as a brand gets bigger, to keep that consistency around the globe. But it can be done, and when guest expectations are met, that level of consistency is extremely powerful and paves the way to being on top.”

WHAT DOES ‘BEING #1’ MEAN TO YOU?

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CONTACTSRobert Shepherd

Chief Development Officer, Europe Tel: +44 1895 512 173

[email protected]

Philippe Bijaoui Vice President Development, Europe

Tel: +44 1895 512 976 [email protected]

Karan Khanna Vice President, Head of Design & Engineering, Europe

Tel: +44 1895 512 791 [email protected]

Paul Phillips Vice President Financial Planning & Investment Analysis, Europe

Tel: +44 1895 512679 [email protected]

Gilles Goasdoué Head of Hotel Openings, Europe

Tel: +44 1895 512 058 [email protected]

InterContinental Hotels Group plc Broadwater Park, Denham, Buckinghamshire, UB9 5HR, United Kingdom

Tel: +44 1895 512 000

We’d love to get your feedback on this magazine! If you have any thoughts or suggestions, please drop us an email at [email protected]