Hotel Indigo will build a five-story, 142-room location in College Park, GA, a suburb near Hartsfield-Jackson International Airport, with an opening scheduled next spring. The College Park location, part of the new Princeton Village development at Harvard and Washington Streets, will join the hotel's original location in Midtown Atlanta and another in Downtown Atlanta.
Jim Anhut, senior vice president of American franchise development for IHG, tells GlobeSt.com that Hotel Indigo seeks locations in what he calls "culturespheres" offering a mix of living and entertainment options. The chain's retail-inspired concept carries various touches such as murals and area rugs in guestrooms, along with seasonal decorations in common areas.
"We feel very comfortable with the long-term potential and the underlying consumer trends that justify Hotel Indigo in the first place," Anhut says. He points to the fact that IHG conducted up to three years of market research before developing its first Hotel Indigo.
Three new Hotel Indigos opened during this year's first quarter, increasing the chain's capacity by 26% to nearly 400 rooms. Its latest location opened earlier this month in Vernon Hills, IL, a Chicago suburb, and future sites are planned for Miami, St. Louis, San Antonio, TX, Baltimore, Las Vegas and New York City.
More than 60 hotels are now under development, with licensing agreements signed for six additional locations totaling 780 rooms through the first three months of this year. Anhut says he expects the chain to open between 25 and 30 hotels by the end of this year, though "we're not in a big hurry to plant flags."
Furthermore, Hotel Indigo plans to open its first site outside the US this summer in a converted 64-room hotel in London's Paddington area. The property was selected because of an undersupply of quality branded hotels in the area, yet is part of a planned effort to expand the Hotel Indigo brand to other continents beyond North America, Anhut says.
Anhut adds that IHG is not terribly concerned about attempting an expansion of Hotel Indigo during an economic downturn, pointing to overall strong fundamentals within the US hotel industry. He notes that it's important for the company not to flinch where its commitments to franchises are concerned.
"Needless to say, we're being watchful of the headlines, but that has not slowed down the momentum of the brand," he says. "You adjust in cycles like this, but you don't take your eye off the long-term opportunity."
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