Kirk Kinsell is president of InterContinental Hotels Group's (IHG) Americas division, which accounts for almost two-thirds of the company's approximately 690,000 rooms. IHG this week is slated to open the first hotel under its wellness-oriented Even Hotels brand in Norwalk, Conn. Kinsell spoke with hotels editor Danny King during last week's NYU International Hospitality Industry Investment Conference.
Q: What's your take on the tenor of the hospitality conference?
A: There are a number of tailwinds helping the overall hospitality industry. The bigger brands are trying to be mindful of the lessons that we learned particularly in the [prerecession] building phase, because, while there has been a lot of money that's been equity-led, now there seems to be a little more debt capital supporting new development.
Q: IHG CEO Richard Solomons took issue with a panelist who implied that IHG was primarily a midscale company. Why is the InterContinental brand overlooked?
A: We're the largest luxury brand in the world. But the brand was conceived 60-some years ago primarily as an outbound luxury offering for American citizens. And before we bought the brand in 1998, there hadn't been an American owner since the Pan Am days. And we're brand-heavy and asset-light, so we haven't put capital to work on development in the U.S., other than the Buckhead property in Atlanta. So we're still underpenetrated vs. perhaps some of our peer group.
Q: NYU Conference Chair Jonathan Tisch lobbied for more government support for the domestic travel industry. How's the government doing?
A: This administration has done more than any prior administration has. But they can do a hell of a lot more. It's always a two-way street, and we have a responsibility to get our story out more effectively, but we need to be given more respect and more support.
Q: Did IHG consider a Holiday Inn offshoot instead of starting the Even Hotels brand from scratch? And who's Even Hotels' competition?
A: We did look at that, but Even Hotels is unique because it plays in the wellness space, and it was important to differentiate the true guest experience in terms of looking for a holistic solution at a mainstream price point. Holiday Inn has those kinds of travelers, but they also have travelers who love to sit in the bar. We don't think we have a direct competitor, but the [demand] drivers tend to be the broader upper-midscale to upper-upscale sectors, so typically Hyatt Place, Courtyard by Marriott, Hilton Garden Inn.
Q: You said on a panel that the most important thing a hotel can provide for a guest is recognition, yet many say the typical millennial traveler prefers convenience over recognition. Is IHG at odds with this group's travel preferences?
A: This is the same group that goes out on 10 different social media sites and says, "Look at me, my selfie." They don't want to be recognized? Come on! But they do want an authentic experience. If it's authentic recognition where their needs are being met, that's great. ... So that means recognizing a person when they enter the hotel -- are they haggard or hassled? They may be carrying a mobile device, so you say, "How can I help you connect as quickly as possible? And here's my WiFi code, and by the way, it's free." That's recognition; it's recognition of serving their needs.
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