Holiday Inn changes, but remembers its roots

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LAS VEGAS -- If a new prototype unveiled this month is any indication, tomorrows Holiday Inn will not be your grandfathers Holiday Inn -- though old generation and new many look surprisingly similar in many ways.

Taking a cue from the automobile industrys retro-design philosophy, Holiday Inn will resurrect once-familiar features like the Holidome but supplement them with state-of-the-art technologies.

When Kemmons Wilson opened the first Holiday Inn on Aug. 1, 1952, in Memphis, it was designed to address all the problems Wilson faced the previous year on a road trip with his family.

It quickly became the chain that defined hotel for young baby boomers.

More than 50 years later, Holiday Inn has grown into one of the most recognized hotel brands in the U.S. and one of the most important brands in InterContinental Hotels Groups portfolio.

Holiday Inn U.S. has sold just under 19 million rooms through June, said Steve Porter, InterContinentals president for the Americas, which from public records, we estimate to be 18% more than Marriott.

Three years ago, when Holiday Inn crossed the 50-year mark, Mark Snyder, who previously headed Hiltons Embassy Suites brand, was brought onboard to guide the chain into the new millennium.

A 53-year-old brand, like a 53-year-old person, has its own specific set of DNA, said Snyder, now Holiday Inns senior vice president of brand management.

[You have to] draw on that DNA and figure out whats relevant.

Key elements of that DNA revolve around expectations of a family-friendly hotel with clean comfortable rooms that offer good value.

Continuing the basic concept, a 143-room prototype was introduced in 2004.

That seems to be the right size for a Holiday Inn, Snyder said at a briefing here during the InterContinental Hotel Groups annual investment conference.

With a nod to the original Holiday Inn, the new prototype features comfortable rooms and large public areas, plus a restaurant named Kems Comfort Food, saluting Holiday Inns founder.

The menu includes such stick-to-your-ribs staples as meatloaf and fried chicken.

At the same time, the new hotels are wired for Internet access, and new technology is integrated throughout the hotel experience.

For example, Kems customers can order off of a handheld electronic tablet, which allows them to communicate directly with the kitchen, Snyder said. Also, there are TVs in the restaurants booths.

Holiday Inn is also reinvigorating its Holidome, an enclosed pool and recreation area, with new standards that include wading pools, a play center, a hot tub and other water and recreational activities.

About 130 Holiday Inns that currently have Holidomes will upgrade by 2007.

Building on the Holidome concept, Holiday Inn has also designed new standards for indoor water parks featuring a 32-foot flume slide that extends outside the hotel proper.

Eight hotels already have indoor water parks, and six more are expected to open water parks next year.

Proving that recreation areas drive revenue, Snyder said that Holiday Inns with Holidomes or indoor water parks can add as much as $28 to their rates and typically have 20% higher occupancy levels.

Holiday Inn, which encompasses the Holiday Inn Express and Nickelodeon Family Suites by Holiday Inn brands, is also taking steps to spruce up its Holiday Inn Select brand, reinventing the business travel hotels to be more responsive to customers between the ages of 24 and 40 -- Generation Xers.

Holiday Inn Select hotels will, among other things, feature Nautilus fitness centers, Sporting News Grill restaurants, bath amenities by Garden Botanika, Wolfgang Puck coffees and in-room clocks designed to accommodate digital music devices such as Apple iPods.

And as Generation Xers travel with their children, Snyder said he believes they will still chose Holiday Inn -- just as their baby boomers parents did.

To contact reporter Michael Milligan, send e-mail to [email protected].

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