IHG and Operadora MBA Celebrate Groundbreaking of First avid Hotel in Mexico

United Kingdom, Denham. September 04, 2019

IHG® (InterContinental Hotels Group), one of the world's leading hotel companies, announced today that its avid™ hotels brand continues to expand, with nearly 200 signings now in place for new locations.

More than 60 of those signed are hotels under construction, or have design and construction plans approved. Accelerating growth internationally is key to the brand's overall expansion, with the company recently marking the groundbreaking of the first avid hotels location in Mexico.

Leaders from IHG joined owners of the new Fresnillo location, Mexico-based Operadora MBA, as well as owners of other future avid hotels in Mexico, guests and elected officials to mark the brand's entrance into the market. Expected to open in spring of 2020, the six-story, new-build 95-room hotel is in an area known for its thriving commercial and business activity, and will be located at Boulevard Paseo del Mineral S/N, Col. Emiliano Zapata, Fresnillo, Zacatecas.

Jorge Apaez, Chief Operating Officer, Mexico, Latin America & the Caribbean, IHG, commented: "We are pleased to partner with Operadora MBA to develop the first avid hotel in Mexico. This groundbreaking further solidifies the brand's increasing momentum and we look forward to introducing avid hotels to Mexico. We believe this brand will fill an unmet need in the market and provide great value for guests seeking high-quality hotel accommodations that cater to both business and leisure travelers."

Raúl Muñoz, principal of Operadora MBA, said: "Fresnillo is the heart of the economy in the state of Zacatecas. Up until now, the city did not have a hotel that could meet the expectations of our visitors. Operadora MBA is proud to bring the first avid hotel to Mexico and to Latin America. We are confident that together with our knowledge of the local market, and the strength of the IHG brand, we will bring the best hotel experience for business and leisure travelers in Fresnillo."

The avid hotels brand is thoughtfully designed to meet guests' expectations for the basics done exceptionally well at a great value. Each avid hotel features a fresh modern design, vibrant, open public spaces and guest rooms made for a good night's rest. The brand also recently enhanced its Good all roundcomplimentary breakfast with new signature hot and hearty items, which in the US include a breakfast sandwich and an egg scramble bowl, served on rotation daily at all avid hotels locations and will be adapted for the Mexico market.

The avid hotel Fresnillo will include the brand's four key hallmarks:

1. Rooms Designed for Sound Sleep - The brand delivers a best-in-class sleep experience, with rooms intentionally designed for reliable rest. This includes a high-quality mattress and linens, choice of firm and soft pillows, black out roller shades and a purposeful design that reduces noise.

2. Latest Technology - avid hotels is the first IHG brand to offer IHG® Studio, a seamless direct casting of entertainment from guests' smart phones and personal devices to 55" TVs in each room. IHG® Connect in each hotel also provides enhanced Wi-Fi technology.

3. Focused, High-Quality Breakfast - avid hotels takes a fresh approach to breakfast by offering guests a select number of high-quality, brand-name grab-and-go options along with freshly made hot breakfast items that will be rotated daily, and a premium coffee experience to start the day off right.

4. The avid hotels Guarantee - avid hotels guarantees the room will be ‘just right' upon arrival so guests can be confident they have made the right decision. If the room does not meet the Guarantee standards upon check-in, the hotel will offer an immediate room change.

The avid hotels brand has multiple locations now open with 10 properties expected to open in the U.S. by end of the year. With several additional properties under development in Mexico, Canada as well as the first signing in Germany, the avid hotel Fresnillo adds to the brand's growing international momentum and will leverage the strength and scale of the IHG parent brand.

Jennifer Gribble, Vice President, avid hotels, said: "We are seeing strong demand for the avid hotels brand from both owners and guests in multiple markets across the U.S., Canada, Mexico and Germany. The response to our first open hotel properties has been very positive all around - from the guest experience to the efficiencies around build costs and operations. We are excited and expect to see similar performance and growth for this brand in Mexico."

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Revenue Management: Focus On Profit

Revenue Management is still a relatively new profession within hotel operations and as such, it continues to evolve. One significant trend in this area is a shift away from using revenue as the foundation to generate key performance indicators (KPIs) and to instead place the emphasis on profit. Traditionally, revenue managers have relied on total revenue per available room (TrevPAR) and revenue per available room (RevPAR) as the basis of their KPIs. Now, some revenue managers are using gross operating profit per available room (GOPPAR) as their primary KPI. This puts profit at the center of revenue management strategy, and managers are increasingly searching for new ways to increase the profitability of their hotels. Return on Investment is the objective of any hotel investment, so it is only logical that profitability and ROI will be emphasized going forward. Another trend is an expanded focus on direct hotel bookings. Revenue managers know that one way to increase profitability is to steer guests away from online travel agencies (OTAs) and book directly with the hotel. This tactic also reinforces brand identity and loyalty, and encourages repeat business. In addition, it provides a valuable platform to market the hotel directly to the customer, and to upsell room upgrades or other services to them. Another trend for revenue managers involves automation in their software programs. Revenue management systems with automation are far more desirable than those without it. Automating data entry and logistics increases efficiency, allowing managers to spend more time on formulating strategy. As a bonus, an automated system helps with aggregating and interpreting data. The October issue of the Hotel Business Review will address these developments and document how some leading hotels are executing their revenue management strategies.